Game Digital Share Discussion Threads

[dragonboy] 24/8/2017 09:44

Looks like shorters getting liquidated

[dragonboy] 24/8/2017 09:37

Very nice

hope we see 40p soon.

Not much on offer side, maybe the sellers will rebuild sell side

But who's going to sell when cash is £47M and growing rapidly as £ is so low against euro.


spain is a big market

[kirk 6] 23/8/2017 19:22

If this was on any other marker as someone said on here it would be up hundreds of percent. Long way to go yet and fair value for the time being above £1

[discodave4] 23/8/2017 19:15

Must thank Mike Ashley for flagging the value here last month when SPD bought some.Will see what it does tomorrow but 32% profit in a month will do me.Good luck LTH's.DD

[kirk 6] 23/8/2017 17:25

Here we go: excellent write uphttp://www.telegraph.co.uk/business/2017/08/23/game-accelerates-push-e-sports-sales-fall-uk/

[kirk 6] 23/8/2017 16:58

Do we think this will get above 40p tomorrow ?

[babbler] 23/8/2017 14:35

Yes. Spread now VERY tight... Afternoon push?

[dragonboy] 23/8/2017 13:41

Investec was saying 888, 10p when the share price was moving from 24p to 100p.

They changed their tune at 120p.

[babbler] 23/8/2017 13:20

Are cancord shorting this or what? Old target 24 new target 24...

[babbler] 23/8/2017 12:18

Seems stuck. If this were aim it would be 100 percent up already...

[mr tumble] 23/8/2017 11:26

It's best to have firepower in place when the market is good.

when in distressed, only loan-sharks will lend.

This is insights, thinking ahead, meaning they are thinking of not only good things. Well balanced to cope with unknown unknowns.


Spain is growing and euro to sterling conversion, will upp revenue and ultimately nice profit.

[twistednik] 23/8/2017 10:54

ps Bestace - I'm re-reading your Stockopedia article to refresh my knowledge on the business ;)

[twistednik] 23/8/2017 10:51

You can probably tell what industry I work in!

It's a hot market currently with easy access to cheap credit! Who knows when the credit cycle will turn so (if you may need them) best to take advantage by securing committed facilities now IMHO.

[kazoom] 23/8/2017 10:26

[edit] Total facilities of £77m - this time last year they had £128m available apparently, so perhaps what they are talking about is refilling that "gap".

I think the £77m is predominantly secured against the UK business and still has 3 years to run, so perhaps they are just talking about renewing some facilities secured against the Spanish business.

Good point Nik that you raise the facilities when you can. I've no problem whatever with them doing that just not clear why they want/need so much flexibility.

[bestace] 23/8/2017 10:18

They already have £77m of undrawn facilities on top of the £47m cash pile. Are their seasonal cash swings really so large they need even more firepower?

[twistednik] 23/8/2017 10:05

Kazoom,

You raise debt when you can! There are large swings in the working capital profile of retail businesses and cash can be easily tied up in stock (especially if there is an overhang post Christmas for example).

It is safer to raise a committed undrawn Capex or Revolving line for site reinvestment which can be drawn when needed and repaid when EBITDA / cash comes through from the uplift in trading post investment.

A shrewd CFO will clearly be budgeting ahead and running sensitivities of certain scenarios. It's a safe option to raise debt ahead of time rather than suffering from a cash crunch at a later date which needs an emergency debt / equity raising to plug (and is effectively a sackable offence!)


TN

[kazoom] 23/8/2017 09:38

Well that was significantly better than I thought it might be. I had been looking at the cash from ops on a half year basis.



28-Jan-17
30-Jul-16
23-Jan-16
30-Jul-15
24-Jan-15
26-Jul-14
25-Jan-14



28.0
-60.6
70.7
-19.8
66.7
2.9
44.5


vs PY
-42.7
-40.8


and speculating that it wouldn't have take much more deterioration to deplete the cash pile at the year end. In fact with them reporting net cash of £47m, that suggests a cash outflow of only about £20m in the quieter second half, which is very creditable. There's no explicit mention of raising new debt in this update (although they did in fact flag the plan at the half year results) given that they have managed to retain a strong cash position it's not clear to me why they would need to raise too much - they could probably upgrade all of the stores to the BELONG format from existing cash reserves (I don't by the way think that they play to do all of them).

[twistednik] 23/8/2017 09:24

On the article I posted, you won't have access unless you work in Finance as it's subscription only news.

I do believe this business is still significantly undervalued and I'm in it for the medium term turn-around.

From the news today, looks like it's already taking shape!

Onwards and upwards from here and good to see a nice profit this morning :)

[babbler] 23/8/2017 09:05

Me too. Lol. Guessing paper coverage tomorrow.

[colin12345678] 23/8/2017 08:53

YEP I AM IN

[someuwin] 23/8/2017 08:42

Looking very oversold. Could recover well.

[kirk 6] 23/8/2017 08:34

This will be heading towards 40p today

[tsmith2] 23/8/2017 08:21

Does paulypilot follow this one