Game Digital Share Discussion Threads

[kirk 6] 23/8/2017 08:21

Don't need that yet! Let me build a massive stake first

[tsmith2] 23/8/2017 08:12

bullish broker commentary would help

[kirk 6] 23/8/2017 08:11

Unbelievable opportunity here. This has the best short term reward potential on the markets! Valuation is literally insane and just massively oversold

[tsmith2] 23/8/2017 08:10

Like a lot. Valuation seems crazy..£47mn cash no debt?Growing cash pileNew format working..

[lemonjar] 23/8/2017 07:40

I'm going to have to be quick at the bell this morning! :)

[useless23] 23/8/2017 07:38

The market cap is 42m and it will have 47m in cash at year end AND it is first mover in a growing niche market. Happy days.

[kirk 6] 23/8/2017 07:32

Edit top of the leader board

[kirk 6] 23/8/2017 07:32

Bloody hell thats better than expected. Was expecting the trading update to make dismal reading! Too if the leader board today

[useless23] 23/8/2017 07:29

Should fly today

[lemonjar] 23/8/2017 07:24

Year and trading update sounds pretty positive to me, very curious how share price will react... (No position at his time)

[kirk 6] 22/8/2017 15:14

Surely this should be trading much higher after Yesterday's news?

[useless23] 22/8/2017 14:53

Bid is moving up nicely

[useless23] 22/8/2017 12:20

Very, very positive.

[cjohn] 22/8/2017 10:56

Hi Kazoom,

I didn't see your kind post some time ago on this thread. I've also only just realised that we've coincided on the TNI thread too! Well not really coincided - looking at similar shares reflects not dissimilar outlook.

Regarding GMD, of course, I realize the large net cash figure - at the interims - is a seasonal one, but what surprised me in the recent update was that they should need to seek new finance sources with so much net cash on their balance sheet even at the last full year ie before the key Christmas season. This suggests things are not going well in cash flow terms.


Would you care to comment on the asset angle? We have a figure of some 16.8m for property in non-current tangible assets at the full year.However, these are all leaseholds and therefore can be discounted. (They've flogged off the various freeholds to bolster cash.)

Once this property's discounted, the asset angle is not that attractive any more to my mind.

I am monitoring this one, but not yet tempted.

The Sports Direct stake is obviously a serious positive.

[lemonjar] 22/8/2017 08:48

I came across this reddit thread about GMDs new Belong arenas - exactly the sort of punter reaction you'd want to hear if your Game... hxxps://www.reddit.com/r/pcmasterrace/comments/6p775u/strolled_into_game_for_the_first_time_in_years/

I think they're on to something here with in store gaming

[lemonjar] 22/8/2017 08:18

I didn't realise the point you make there about their cash situation overstating things at this time of the year, thanks for pointing that out Kazoom

[kazoom] 22/8/2017 00:00

I didn't see that story about additional debt financing although there was other news about a fledgling partnership with Maplins; to put Game concessions within some Maplin stores.
That could be an interesting development and an opportunity to exit some of the less well performing stores whilst retaining must of the turnover. (Don't forgot that the Game retail estate is on exceptionally short leases and therefore the exit costs are quite limited.)

As to the debt raise; equally interesting if true. It's no secret that the co. has been looking to convert more stores to the enhanced format; I don't have the figures to hand but I think the payback on the £50-100k cost per store was fairly short. I had presumed therefore that they would progressively do this through operating cashflow. (Don't be fooled by the way lemonjar that the have "plenty of cash on the balance sheet" - the figure from the interims is hugely flattering when they have all the Christmas takings in the till, but have yet to pay their suppliers)

If they are considering a debt raise (and I think that would be better than an equity raise at this stage) it would suggest that they want to accelerate the transformation - that strikes me as a positive development.

One query I have though from the quoted 'article' (other than wondering where it comes from) is the quote :

The debt raise could be complicated by the acquisition of a 25.75% stake in the company by Sports Direct International, the U.K. retailer controlled by Mike Ashley.

I'm not sure why that would be a complication? They do not need shareholder approval to take out a loan; and I can't see how/why Ashley would have a problem with an investment proposition with a positive financial impact - unless of course he want to take out GMD on the cheap - in which case he would be at odds with the majority of the shareholders.

[lemonjar] 21/8/2017 22:39

Thanks for the post. Do you have a link to the source of that update by chance?

One thing I don't quite get is why they need a loan as they have plenty of cash on the balance sheet? Probably just me being above to these things but if anyone has an explanation I'd be grateful

[twistednik] 21/8/2017 16:39

(EUR) Game Digital seeks financing to support investment

Game Digital is seeking debt financing to support an investment programme, according to sources.

The London-listed video games retailer is seeking to secure new debt against its well-performing Iberian operations to back improvements to its U.K. retail chain, sources explained. The investment programme includes creating new live gaming arenas where customers can play video games together and against other arena locations. The company envisages creating 50–100 arenas in its highest footfall premium locations, according to its 2016/2017 half-year results presentation. The capex per store refit is roughly £50,000–100,000.

DC Advisory is advising the company on the debt raise, sources added.
The group reported gross transaction value of £566.3 million in the first half of 2017, down from £608 million for the same period in 2016.

Adjusted EBITDA for the period stood at £23.3 million, down from £33.1 million in the first half of 2016. Gross transaction value fell 18.1% for the U.K. retail operation while it rose 22.1% for the Spanish retail business, over the first six months of 2017.

The debt raise could be complicated by the acquisition of a 25.75% stake in the company by Sports Direct International, the U.K. retailer controlled by Mike Ashley.

Game Digital listed on the London Stock Exchange in 2014. The re-listing followed a turnaround after the company was forced to delist in 2012 and was sold out of administration to Opcapita.

[useless23] 10/8/2017 09:58

Anyone got any ideas for the fall today? I can't find anything on the internet.

[gfrae] 20/7/2017 14:46

But this one is Game Digital.

[investment dave] 20/7/2017 13:57

Sports direct up a wedge today

[buywell3] 18/7/2017 19:06

NOT with this BOD's track record

Good luck to you too

PS

I am amazed that Woodford stood by and watched his investment go down the pan

[monts12] 18/7/2017 19:04

Buywell
This isn't a long term Buffet type investment for me but as Paul Scott says it is a special situation (see my previous post).
I do not argue with your points above, it seems you are/were a long term holder and if so you quite rightly post the facts as you see them.
However for someone buying now or recently, there does appear to be a very good short/medium term opportunity here.
Good luck
Disclosure: I own shares in GMD, purchased within the last 3 weeks