Game Digital Share Discussion Threads

[supercity] 27/3/2018 11:02

Like for like up 10% up to a week or so again£500m turnover£80m+ in cashMarket cap £40mEven me being scriptural about their future would be hard pushed to say the share price shouldn't be at least double where it is today and where it was a month or two ago

[typo56] 27/3/2018 10:07

It would be interesting to hear what Mark Gifford, departing CFO, would have to say. I can't understand why Ashley has been allowed to potentially get so much control of shareholders' destiny.

[kazoom] 27/3/2018 09:46

Typo, re the cash :

Firstly we know that the January [HY] cash is peak (Christmas cash in the tills, but suppliers not yet paid) cash at the Full Year is always lower.

But I think even the HY cash is tied up with bills coming due. I can't really demonstrate that last point, but there are a few pointers :

(1) A couple of years ago they paid a large special divi, saying something along the lines of commiting to return excess cash to shareholders, yet from memory they still held on to about £50m,

(2) In these latest results they refer to "New two-year facilities signed in Spain on 19 January 2018 for €28 million and increasing to €44 million over the peak season" - ie at "peak season" they need this debt facility to fund the business.

(3) The overall level of debt facilities they have made available far exceed what they need to fund the BELONG roll outs.

Don't get me wrong, having the cash is great and it is good to see a company returned to the market by Private Equity not still mired with debt, but I think the oft quoted idea that you can value the business on an earnings multiple plus the cashpot is wrong, the cashpot is needed to deliver the earnings.

All imho of course.

[john09] 27/3/2018 09:25

This was doomed the day it sold 50% of profits for a couple of million quid. Doesn’t mean shareholders buying at 24p won’t make money however .

[typo56] 27/3/2018 09:10

But 50% of future profits of BELONG and 'associated Venues', will be channelled to Sports Direct, whatever 'profits' means.

[martinthebrave] 27/3/2018 09:02

Cash up to £82m & re-negotiating leases/closing stores. 👍However..... BELONG arena's delayed as review indicates larger stores needed ergo EPS growth delayed.👎 I think the Cash wins but lets see what Mr Market makes of it. I still hold a few of these......

[typo56] 27/3/2018 08:42

Kazoom, I too find it odd that they have those debt facilities when net cash is £82.2m. You'd have thought they could have parted with 1p per share as an interim divi (shares in issue 173m).

Perhaps the cash is a red herring, but can you explain why?

[supercity] 27/3/2018 08:18

Excellent update - a fair bit of upside from these levels IMO

[kazoom] 27/3/2018 08:04

HA,

What do I know - looks like the price is up first thing!

[kazoom] 27/3/2018 07:58

I've said before I think the cash is a bit of a red herring, if it were really surplus then they wouldn't need the debt facilities they have. Nevertheless this is getting more interesting and IF there are indeed further markdowns based on the outlook it could be an opportunity.

I'm still concerned though that we haven't been given a clear picture of why the Sports Direct tie up placed such an apparently low valuation on the BELONG business. Bet that will come up at the analysts meeting.

[hatfullofsky] 27/3/2018 07:29

It's the disparity between MCAP and CASH that will be appreciated, good growth in E-Sports too. But I agree this may not be pretty but may present am buying opportunity.

[kazoom] 27/3/2018 07:21

The overall console market is expected to be more challenging in H2 given the strong comparatives in H2 2016/2017 including the initial success of Nintendo Switch following its launch in March last year. Given that the timing of the release of the new Nintendo games are still to be confirmed and other titles such as Red Dead Redemption 2 have moved into the first half of the next financial year, even greater priority has been placed on efficiency and cost saving actions

Sensible, but I can't imagine that being well received in today's market.

[hatfullofsky] 27/3/2018 07:17

The review highlighted the benefits of more gaming stations per arena and therefore the requirement for larger properties which lead to a deferral of new store openings in H1 compared to the original plans for the year and as a result there will be a small delay in the anticipated earnings growth.

[hatfullofsky] 27/3/2018 07:15

New larger format Belong arenas delayed.

[hatfullofsky] 27/3/2018 07:15

85M in Cash !!!!!

[kirk 6] 27/3/2018 07:12

Thanks bullet well thats fine in your little world. Doing extremely well from it and will carry on. (Only if that's ok with you though)

[hatfullofsky] 27/3/2018 07:04

Bullet - is that really necessary? Grow up

[bullet ant] 26/3/2018 22:01

KUNT6

Best you stick to sukking koks for beer money. This share trading malarkey is not good for bankrupt KUNTs like you.

BA
Stealing is good.

[kirk 6] 25/3/2018 09:58

Bullet you seem to be getting this drastically wrong I was in with near 600k shares at 19-20p and sold at 43p made a killing in 2017!! Haven't been back either no position at the moment and was bit annoyed when these went to 60p. I'm a buyer again here but at 15-17p this time

[bullet ant] 23/3/2018 16:53

Bloody hell.

I knew it, when get Kunt6 and NW99 about at 60p, everyone should see the neon red flashing light saying run for your lives.


what to do?

Buy order at 10p or 2p?

Crazy sheiks happening.


CASH is King? Please tell that to loon NW99.

Anyway have a great weekend all genuine investors.


BA
Stealing is Good

[thevaluehunter] 23/3/2018 16:19

Cash is king. We'll find out next week.

[bullet ant] 22/3/2018 12:28

OK

dcb time or not?

I suppose when NW99 got wiped out, it's time to get in

BA
Stealing is good

[hatfullofsky] 21/3/2018 16:44

Not a good sign at all !!!!

[thevaluehunter] 19/3/2018 16:06

Looks like anything retail with physical stores is getting whacked today.

[thevaluehunter] 16/3/2018 15:22

Could be in negative EV territory one the results come out.