Game Digital Share Discussion Threads

[warmsun] 30/11/2017 09:16

MMs trying their best to keep a lid on the share price but buyers still taking this higher.
Onwards and upwards, I hope!

[gersemi] 30/11/2017 05:36

GAME is now on an FY18e EV/EBITDA rating of 1.8x!!

While average EV/EBITDA values vary by sector and industry, a general guideline is an EV/EBITDA value below 10 is commonly interpreted as healthy and above average by analysts and investors. As of 2015, the average EV/EBITDA value for the overall market is 14.7

A high (low) EV/EBITDA mean the company is potentially overvalued (undervalued). EV/Financial Metrics are often used by analysts to quickly look at a company's valuation multiples. All things being equal, the lower this ratio is, the better.

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GMD is considerably undervalued

[warmsun] 29/11/2017 23:18

I did have a passing thought in my head about a takeover (being bought relatively cheaply before the big profits arrive) but then I thought I was just being silly and over optimistic...wishful thinking on my part?

[lw425] 29/11/2017 20:52

Thing is that GMD have 60m in cash now.

Market cap 80m

They are certain to add 20m to cash balance by Jan as we're approaching the strongest trading period.

So GMD basically have the entire market cap covered by cash over Christmas.

Wonder if they'll get taken over?

Looks good value to me even now.

[gersemi] 29/11/2017 20:43

Yes, much more to come here I suspect as GMD head towards Xmas:

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Martyn Gibbs, chief executive of Game (left), said: “After two years of declines, our core UK console market returned to growth in the second half of our financial year on the back of the launch of the Nintendo Switch.”

He added: “Whilst we remain mindful of the structural headwinds that remain in our core markets, we expect recent positive market dynamics to continue into our peak Christmas trading period.”

The brighter sales outlook comes as welcome respite for Game, which was forced to warn over profits in June when it was hit by challenging high street trading and poor initial stock availability of Nintendo Switch.
Nintendo

Despite the supply issue, the Nintendo Switch launch has helped breathe new life into the market.

It is expected to be one of the best sellers this Christmas, while Game is also putting faith in strong demand for the recently launched Microsoft Xbox One X.

Game – in which Mike Ashley’s Sports Direct holds a 26% stake – is also leading a push into e-sports and live gaming to reduce its reliance on the volatile console market.

It said this division saw strong annual growth after sales more than doubled – up 116.4% to £13.2m.

It has previously said it wants to tap the “significant potential” of the group’s e-sports activities, where professional gamers battle it out in front of crowds at events such as Insomnia.


Read more: Game Digital cheers sales rebound thanks to Nintendo Switch

[greenknight1] 29/11/2017 20:31

Agreed...no where near done here

[hatfullofsky] 29/11/2017 19:28

Run your winners

[warmsun] 29/11/2017 15:05

If we were to get one more piece of positive news I believe we would see this flying (further) north.

[rickyvader] 29/11/2017 14:25

Hit 50p. Tempted to sell at that. I expect Christmas to be good though

[thevaluehunter] 28/11/2017 23:15

I agree the chart looks pretty good.

[john09] 28/11/2017 16:38

I’ll be back but I think we will be staying sub 50p for a while so I’m happy to bow out for now. GLA

[nw99] 28/11/2017 16:37

We have broken out on the chart now

[thevaluehunter] 28/11/2017 16:21

I reckon they will crush last years performance for H1. The games and hardware line-up is so much better than last year. They also have an enormous amount of cash in the bank! On multiplay they brought it for £20m and sold half the business (the server part) for £19m pretty good business in my opinion.

[kazoom] 28/11/2017 16:13

Nice trade john, I thought you were in for the longer term though.

There probably us some SCSW 'froth' to come off though, so IMHO likely to be a chance to get back in lower. To be fair though that disposal is worth a few p on the share price.

[john09] 28/11/2017 15:52

Sold the rest at 48p plus. 10p a share profit in a week or so is pleasing. May buy back later

[nw99] 28/11/2017 15:14

Still holding here for long term gains

[john09] 28/11/2017 14:24

Sold 30,000 at 48p and 47.75p

Holding 70,000 more at 38p purchase price. Happy to hold and also happy to come out at these kind of levels too

[daniel levi bmd] 28/11/2017 13:48

FYI





Dan
x

[thevaluehunter] 28/11/2017 13:18

Enterprise value c~nil crazy valuation.

[bookbroker] 28/11/2017 08:12

A good price for a loss making business!

[john09] 28/11/2017 07:51

+ £19m

[john09] 28/11/2017 07:34

Woah. Nice cash