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Game Digital (GMD)

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CommissarJones
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Game Digital (GMD)

#63876

Postby CommissarJones » June 30th, 2017, 10:49 am

Another day, another profit warning from Game Digital.

http://www.investegate.co.uk/game-digit ... 03576759J/

This particular leopard certainly hasn't changed its spots. The company returned to the stock market in June 2014 at 200 pence a share, now it's down to 23.5p. How long until it goes into administration for a second time?

My condolences to anyone who bought into this one, but considering the company's history, it seems to me there was ample reason to believe that it would all end in tears.

HBEN
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Re: Game Digital (GMD)

#64950

Postby HBEN » July 5th, 2017, 2:43 pm

This is a shocker for me!

harryhoudini
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Re: Game Digital (GMD)

#65257

Postby harryhoudini » July 6th, 2017, 9:17 pm

Thanks for your condolences.
I bought this Dec 15, just after the profit warning, (completely forgetting about the previous collapse,) for the yield, 15p per share and a 20p special div. the previous year. Elliot had maintained a 43% stake and Woodford had another 18% and various other institutional holdings made it up to 94% of the shares. You just can't trust professional investors to know what their doing.
Having averaged down to 100p so now sitting on a 80% loss....
Having said that their Spanish arm seems to be continuing to prosper. One broker report suggested that management has the right strategy but events keep pulling the rug from under their feet.
They are still paying a much reduced dividend.
The latest announcement suggested that there was a lack of supply of the new consoles for the UK and I curious about that. Are UK buyers buying them on the Internet? Surely if there is a supply shortage then that should give them more pricing power. Something's not quite right.
Be glad to hear any other thoughts.

hh

jackdaww
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Re: Game Digital (GMD)

#65269

Postby jackdaww » July 6th, 2017, 9:37 pm

how on earth woodfords gang got into this is incredible.

i bought in because of their endorsement against my own instincts .

i did get out at 44p at a massive loss.

other woodford duds are next and utilitywise and touchstone etc etc .

:x

harryhoudini
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Re: Game Digital (GMD)

#65277

Postby harryhoudini » July 6th, 2017, 10:00 pm

Thanks for the pauly pilot comment.
If I was coming in at this level It would be a buy for me...
However as I've lost c80% my dilemma is to cut my losses or add a bit more.....
The lease events are an obvious opportunity to close unprofitable stores at no cost.
Does any one have any experience of their in-store events- are the well attended with repeat customers or just one offs from their publicity.

hh

gryffron
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Re: Game Digital (GMD)

#65306

Postby gryffron » July 7th, 2017, 12:10 am

I have a couple of friends work at the local shops and I know the area manager. The latter tells me all their profit locally comes from GameTronic, the second hand electronics shop. Games and consoles are really just to get people in the door. Downside for him, really hard to recruit and retain sufficiently techy staff to test and reset the traded-in devices on retail wages.

Downside for me, GameTronic customers trading-in hardware in the queue in front of you mean it can take AGES just to buy a simple game. I don't want to stand in a queue for half an hour. When I mentioned this to the manager he just shrugged and said, "Headquarters don't care, all the money is in trade-ins". So I don't shop in there any more either.

They do have a solid core of customers. But I think it is shrinking. It no longer includes me. Lost money on the shares the first bancruptcy. Will not dabble again.

Gryff

jackdaww
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Re: Game Digital (GMD)

#65328

Postby jackdaww » July 7th, 2017, 8:20 am

gryffron wrote:I have a couple of friends work at the local shops and I know the area manager. The latter tells me all their profit locally comes from GameTronic, the second hand electronics shop. Games and consoles are really just to get people in the door. Downside for him, really hard to recruit and retain sufficiently techy staff to test and reset the traded-in devices on retail wages.

Downside for me, GameTronic customers trading-in hardware in the queue in front of you mean it can take AGES just to buy a simple game. I don't want to stand in a queue for half an hour. When I mentioned this to the manager he just shrugged and said, "Headquarters don't care, all the money is in trade-ins". So I don't shop in there any more either.

They do have a solid core of customers. But I think it is shrinking. It no longer includes me. Lost money on the shares the first bancruptcy. Will not dabble again.

Gryff


============================

thanks for the inside info .

another reason i bought in was that the shops seem busy .

sadly that doesnt always mean profitable.

ps. games workshop is doing ok - but a completely different business.

:)

WalbrockResearch821
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Re: Game Digital (GMD)

#65630

Postby WalbrockResearch821 » July 8th, 2017, 1:06 pm

Game Digital would be a good addition to Amazon (just saying!)

But I feel Jeff Bezos would step in if it goes into admin.

In the short-run, management should liquidate the company before their balance sheet deteriorates.

CommissarJones
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Re: Game Digital (GMD)

#66937

Postby CommissarJones » July 13th, 2017, 10:48 am

Mike Ashley seems to perceive something attractive in GMD, enough to make him buy a quarter of the company's stock.

https://www.investegate.co.uk/game-digi ... 01019228K/

harryhoudini
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Re: Game Digital (GMD)

#68245

Postby harryhoudini » July 18th, 2017, 10:34 pm

It appears that Woodford has disposed of his entire stake of 19.54% on the 12 July so that would be where Mike Ashley got the bulk of his 25.5%. Invesco also reduced their stake to 0.75% from 9.41% so that's an additional c3% sloshing about some where.

harryhoudini
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Re: Game Digital (GMD)

#78968

Postby harryhoudini » September 3rd, 2017, 10:00 pm

Still in the Game! Very positive year-end positive trading statement. The Spanish operation benefiting to from Euro/Sterling rate. They seem to have got the console shortage sorted and sales growing a little. They're also focusing future efforts their Esports/Multi-play offering after a a doubling of Multi-play revenues and near 50% rise in Esport revenues. Year-end cash balance expected to rise from £43m to £47m. They're also expecting a £5m reduction in costs from their 220 "lease events out of 304,( see announcement with Maplin.) They have also announced the opening of 4 concessions in Maplin stores if successful could lead to a big drop in fixed overheads if they roll-out over the Maplin estate. If it works their future lease events could involve Maplin taking over some of their estate and sharing the costs.(Maybe I am over optomistic as the Argos/Sainsbury trials lead to a Sainsbury takeover of Argos.) No word on the dividend.
Share price spiked to over 40p, down to 39/38 now so Ashley is sitting on a gain of c50%. I don't particularly approve of the man's business ethics but he does appear to be able to spot a bargain.
Any other thoughts out their?


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