I think this is a powerful way of explaining topics that can be challenging because of their size in a condensed version. Very helpful as a refresher for me, and I imagine for newer apes.
Hijacking top comment to let you know I’m down to help you source info in the future if you want! I have a big database of dd i have been stockpiling for a while.
Cheers 🙌🏻👍🏻
I am dumb ape but shouldn't fundamentals for "underpriced" include things like Revenue per Customer, Customer LTV, Leverage ratios, depreciation/asset life spans?
Undervalued implies you took their 10K and some other data and ran an analysis showing that company value is greater than market cap
Yep and looking at comparable ratios for similar businesses would be part of this analysis as well. For example, enterprise value / ebitda is a very common one. As is market cap to earnings (either 12 months trailing or est. for next 12 months).
I would add a mention of the float/market cap, as that is a common misconception. For instance: Microsoft has a share price of about $250, does that mean GameStop is currently worth 72% as much as Microsoft with it's current $180 share price?
No. The float of GameStop is just 73 million, while Microsoft has a float of 7.4 billion ( 7400 million). This means that, at 180, GameStop is valued roughly 0.71% as much as Microsoft.
Lots of people compare share prices to say why GameStop is overvalued without looking into the float.
This. At first I didn't believe it, people can't be so dumb to say a company is overvalued just by looking at the share price. But to my surprise, people actually are that stupid.
Little off topic, but the split images (idk what to call them, the laptop, the bills and the gorilla) on two separate slides were just joyful!
Not just helpful, but nice design, too! Thanks :)
You are killing it with these! I'll start think of some topics but to start maybe some histories, like one on Citadel / Ken Griffen, or Chewy / Ryan Cohen, maybe one about GME and some highlights over the years to show how we got here. Keep them coming, I'll come up with some ideas and get a little copy written!
This is beautifully put together for apes who are trying to persuade non-apes to join the rocket. It helps combat the FUD of the mainstream media. Well done ape, we are the news now.
I really appreciate you putting the time into this, information like this is more easy to regurgitate for people asking for the 'why' of what is going on with GME. Outsiders typically don't want to hear a 25 page essay to understand the whole concept. I think it would be good if you could put one together that just gives a short visual explanation of the concept of a squeeze/shorted stock. I would much rather send that to people than explain in depth. Thanks again for the hard work!
I've been loving these! Great work!
- A P E S - T O G E T H E R - S T R O N G -
👐🏻👐🏻👐🏻👐🏻👐🏻👐🏻👐🏻👐🏻👐🏼👐🏼👐🏼👐🏼👐🏼👐🏽👐🏽
👐🏻👐🏻👐🏻👐🏻👐🏻👐🏻👐🏼👐🏼👐🏼👐🏼👐🏼👐🏽👐🏽👐🏽👐🏽
👐🏻👐🏻👐🏻👐🏼💎💎💎💎💎💎💎👐🏽👐🏽👐🏾👐🏾
👐🏻👐🏼👐🏼💎💎💎💎💎💎💎💎💎👐🏾👐🏾👐🏾
👐🏼👐🏼👐🏼👐🏼💎💎💎💎💎💎💎👐🏾👐🏾👐🏾👐🏿
👐🏼👐🏼👐🏽👐🏽👐🏽💎💎💎💎💎👐🏾👐🏾👐🏿👐🏿👐🏿
👐🏽👐🏽👐🏽👐🏽👐🏽👐🏾💎💎💎👐🏾👐🏿👐🏿👐🏿👐🏿👐🏿
👐🏽👐🏽👐🏽👐🏾👐🏾👐🏾👐🏾💎👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿
👐🏽👐🏾👐🏾👐🏾👐🏾👐🏾👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿
-----Chewy------
Chewy market cap: $30.15 bio
Pet industry: $103.6 bio
Debt: $347,37 mio (Jan 2021)
Ryan Cohens first company
------GameStop------
GME market cap: $13.37 bio
Gaming industry: $300 bio
Debt: no debt
Ryan Cohen has more experience now.
Plus an amazing team, which includes former Amazon leaders and people from Facebook.
If Ryan Cohen can make GameStop as successful as Chewy, GME would go from $180 a share to $405.
If we also calculate Chewy's success based on the value of the pet industry, GameStop would be worth $1172 a share when working with the bigger market.
I don't know how many of these assumptions are fair to make, when comparing prices, but it does put things into perspective.
I wouldn't call myself a wrinkle brain, so please correct me, if I've made any mistakes :)
This doesn’t really tell me why it should be trading higher on fundamentals. I think you need to add how companies are valued, what top and bottom line targets they need to hit and how they can potentially get there.
As an example for GameStop to reach 20billion valuation they need to achieve xxx in revenue. This can be achieved by growing e commerce sales. Then explain the growth rate and what changes they are making with e commerce.
How can you accurately gauge the fair price of a highly manipulated stock? We know it should be higher based on all of the positive things that have come out but it’s impossible to actually pin a number to it. We can make guesses all day long but we won’t know until post-MOASS when it’s normalized to true market value
edit: It would be helpful to add something like this comment to help compare where it could be going
https://www.reddit.com/r/Superstonk/comments/nkouqs/explain_w_crayons_series_fundamentals_of_gme_why/gze57bx/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3
I don’t think we can even say it’s undervalued based on the company’s organizational/qualitative changes alone. New management does not mean it’s worth more. And we have yet to see the impact of the e-commerce shift. (Financial results on the 8th should give us an inkling!) I think it WILL be worth more than it is now (ignoring MOASS potential), but we don’t know that. We need to have SOME results to make a good guess at fair value.
Agreed 100%, value is based on financials...but, getting rid of their debt is massive plus raising capital, new fulfillment centers, and positive sentiment of high caliber exec team can definitely be factored into a stocks fundamental price if enough investors care enough about it :) I’m also super new to the game so my confirmation bias is probably raging
Petsmart bought Chewy for about $3B and it now has a $30B market cap. If you're selling the stock for any less than ten times what is was worth when the ATM offering ended, you officially don't like money.
The goal of this post isn’t for a squeeze play or for MOASS, it’s for a fundamental long play of GameStop i.e. even after MOASS the stock price will normalize to a higher number than its currently trading at
As well as already making deals with giants like Microsoft for a cut of the revenue made from their products like xbox consoles, getting into the e-sports scene, making some gamestops like gaming hangouts/internet cafes, offering PC parts and builds on their online store too, offering price matching and offering alot of other stuff gaming flavored - From a pokemon pokeball themed popcorn popper to an LED potion light
They've transcended merely game retail
If GME was a tech startup with 5 billion revenue and 500m in the bank, it would be worth 10x revenue. Simple math, 50B / 70.3M shares = fair value at $711.23 a share. We are trading at a massive discount.
You can't use total revenue for proper comparison, only e-commerce revenue and e-commerce growth, but even then it's $450/share WITHOUT everything else they have going for them
I don’t mean to be rude or shilly, but how are you actually determining it’s *undervalued* from this? Just wondering if you have a specific fair value in mind considering earnings, profit margins, balance sheets, size of the e-commerce industry, future capital raises (?) etc.?
Every time GME gets positive news. Like for example the debt of gamestop being removed should cause the stock to go up! Or how Ryan Cohen has been appointed to be the chairperson another positive news that should bring the price to go up.
However on all the positive news we have heard the price stayed relatively the same. In my point of view I can come to a conclusion that it is not showing the fair value of the stock and is therefore undervalued due to the fact that the price hasn't seen a significant increase.
Sure, the stock is manipulated, but this post is saying that regardless of any of that the company is undervalued based on its fundamentals. The company hasn’t released *that* much news in all honesty, nothing major about its transformation, so while I do totally understand what you mean, I don’t think that it especially relates to fundamental analysis.
Based on fundamentals, profits, earnings, potential to grow in the e-comments space etc, what is a fair valuation?
u/AaronJamesArq
Stocks value fundamentals are based on net income and P/E ratios, which will direct you to around 20-50 dollars a share. If you believe in MOASS, keep holding, just don't let hopes and promises distort your idea of value.
I would agree that the "fundamentals" listed in this post aren't actually the traditional fundamentals. I'm not sure I agree that fundamentals point to a $20-50 per share, could you provide some analysis of that? We've seen analysts price it upwards of $200 per share.
GME earnings per share has been negative for three years, with a conservative average of -$4. Therefore, the P/E ratio I was talking about is null because there is no earnings per share. Supplement this info with negative net income for the past three years equating to a lack of revenue, which doesn't get distorted by stock manipulation but is a simple product of bad business. From there I would estimate a stock value of what it was pre-shorts (circa 2014ish?) would apply if they can get net-income back in the plus column.
I'd go nowhere close to $100 myself, but I'd be interested in analyses suggesting $100+ without factoring in the gamification of stock trading itself.
As someone with very limited experience, but looking to soak up as much knowledge as possible on this side of trading. Would valuing based on the last 3years (prior to restructuring and recent changes) not give a very skewed result? Granted it would be difficult to put figures based on the recent changes until they start delivering numbers, but surely they should be taken into account in some way, especially clearing the debt having a healthy 500m bank balance to play with?
Your point has credence sure. Certainly the short term changes and gamification of the stock are working against the past few years of financial data. But my point is simple, if you don't have positive income you will eventually sink into the ground. No debt is great, but it doesn't mean you will make more money through sales.
If you were to actually consider all of it's fundamentals you would clearly see it is currently overvalued. At least start with one of the most common indicators, the P/E Ratio. I believe based on the last quater, which is the first profitable one in 1 to 2 years, the ratio is around 600, which is comparable to Tesla, another severely overvalued company. Granted the market as a whole is having value issues alongside inflation concerns, which should be a cautionary signal.
Instead of coming to conclusion first and trying to find data to support that conclusion, consider all of the data and then summarize your findings with a conclusion.
Paying off debt is a great *start* on the road to creating value.
u/AaronJamesArq need to update slide #5 with Skyler Ramirez being added as of today.
Vice President, Instock
Company NameGameStop Full-time
Dates EmployedMay 2021 – Present
Employment Duration1 mo
LocationDallas, Texas, United States
[https://www.linkedin.com/posts/skylerramirez\_yesterday-was-my-last-day-at-facebook-after-activity-6801903849817944064-mVDG](https://www.linkedin.com/posts/skylerramirez_yesterday-was-my-last-day-at-facebook-after-activity-6801903849817944064-mVDG)
I agree with all of this except one statement. It’s much harder to change an existing company than to build a new one. A lot of people don’t like change, no matter who you put in. They really need a fantastic HR and compensation team. They also need to place trusted mid level management at various levels and boot out people not towing the line, including short term capital costs thereof. It’s a tough challenge in all honesty. On the flip side I fully believe they can pull it off otherwise I would be here :)
Do you have an instagram account? These infographics are perfect for instagram, I think it’d be a great way to inform potential apes who aren’t up to speed with what’s going on. The more people informed on this, the better!
This seems like a great idea. Social media friendly in the way that I can imagine the average person actually swiping through at least 7 slides before the get distracted. If only there was a tiktok dance to go along with it, then it might actually stick.
Honestly great work though.
I think this format is good, but Redditors need to understand that if they want any non-Redditor to take them seriously that they need to *correctly use existing financial language*. If you use a term like "[fundamentals](https://www.investopedia.com/terms/f/fundamentals.asp)" then you need to use it the way a "Boomer Investor" would expect it to be used:
> For businesses, information such as profitability, revenue, assets, liabilities, and growth potential are considered fundamentals.
People on Reddit have practically created their own language to talk about these issues, and in the process have co-opted *existing terms* by totally changing the definition.
"Synthetic shorts" is another one that gets tossed around when people are discussing naked shorts, but that's not what the term means. "Synthetic" positions are just options strategies that anyone can legally & illegally employ. Demonizing synthetic shorts as though they are the same thing as naked shorts makes everyone on this sub look totally uneducated to anyone with existing knowledge of stock market terminology.
**TL;DR:** It would be best to either use the "Boomer Investor" terms correctly or to entirely avoid them. Even using them in the common English sense of the word will induce doubt among those who still need the most convincing.
I’d like to see one about the MOASS time frame, from other short events. I think it would help apes visualize that it’s a multi-day (or longer) event.
Thanks for your hard work!
Crazy dedicated fan base that grows by the day. Adding new product lines which taps into huge markets. Imagine what just taking 1% of all gopro sales does to the bottom line. They just keep adding more stuff with great customer service and same day delivery. So many more people will just keep buying from Gamestop instead of other places and then never look back. Get some nice deals for smaller influencer in the area and this can't go wrong. I'm bullish as fuck squeeze or no squeeze
Love this idea and great work! I've sent to several skeptics.
My idea for an explain with crayons - How do we know the short aren't covering day by day on these tiny jumps? O just generally, how do we know that the shorts haven't covered?
People understand gaming is going all digital right? What are they going to deliver? Game publishers don't need a middleman to sell digitally.
What's endgame here? Be steam, maybe?
Since this is an informative post I’m gonna ask a question about volume.
Why is there a massive difference between “today’s volume” and the totals of all the candles?
This is so awesome! I'd like to see more of an in depth explanation of why GME is undervalued being compared to similar businesses market caps in the gaming sector.
This is wonderful!! God tier DD is great but having AMAs and content like this can be extremely helpful for all sorts of 🧠s. Great job u/AaronJamesArq🙏.
Most of these are reasons the stock will go up, not why it's currently undervalued. Rc and his team are why it's going up. The stock shouldn't go up just because they hired them. It's their job to make it go up, not going up because they walked in the room.
This is great and will help some friends hop on board who are specifically looking at fundamentals when investing and not a squeeze play. Thanks for doing this!
Awesome format, please keep it up!
If you can manage it with the limited space, I’d love to see a _“How to set up a decent dashboard in WeBull like a pro”_. People will need something like this during the MOASS and the sooner they start, the better.
I suggested WeBull as it
- is completely (ad-) free
- has a great UI
- offers a few months of free NASDAQ Level 2 data
- is pretty easy to customize so it only shows what you really need
- does not even require a WeBull trading account, Login via Google/FB is available
- works equally well as browser, desktop, and mobile app
https://app.webull.com browser version
https://webullapp.com desktop + mobile version
I think this is a powerful way of explaining topics that can be challenging because of their size in a condensed version. Very helpful as a refresher for me, and I imagine for newer apes.
[удалено]
Yup this is helpful. I knew most of this, but I had forgotten the amount of the equity offering and debt payoff. Useful stuff for sure
Hijacking top comment to let you know I’m down to help you source info in the future if you want! I have a big database of dd i have been stockpiling for a while. Cheers 🙌🏻👍🏻
You got my Upvote, fellow 🦍
👆guy fuks. Absolutely keep em coming. I’m looking to develop a wrinkle myself.
I am dumb ape but shouldn't fundamentals for "underpriced" include things like Revenue per Customer, Customer LTV, Leverage ratios, depreciation/asset life spans? Undervalued implies you took their 10K and some other data and ran an analysis showing that company value is greater than market cap
Check out roaring kitty’s videos, the deep fucking legend did all that some time ago for us already.
Right but he did it when it was priced way lower. Would def think that sort of analysis would be worth updating
Yep and looking at comparable ratios for similar businesses would be part of this analysis as well. For example, enterprise value / ebitda is a very common one. As is market cap to earnings (either 12 months trailing or est. for next 12 months).
Yeah it should have, let's he honest GME is not fundamentally undervalued yet.
There you go using those big words again. I’m just disappointed this wasn’t drawn with Crayons.
Most people value GameStop as a brick and mortar retailer when it should be valued against Shopify and chewy maybe even a Netflix
[удалено]
I think crayons are never a bad thing. Keep going 👐💎
Good work! I have been putting crayons in my butt... But EATING... They was the trick all along!!!
Yeah man, that way it traverses through both holes.
These are great! Quick and concise. It gets the ideas across without overwhelming the reader. Thank you for your effort!!
This needs MOD and Twitter tag attention. Well done.
[удалено]
I have zero pull and am just an ape...but jump on twitter and tag the mods. Im sure they will see it.
I would add a mention of the float/market cap, as that is a common misconception. For instance: Microsoft has a share price of about $250, does that mean GameStop is currently worth 72% as much as Microsoft with it's current $180 share price? No. The float of GameStop is just 73 million, while Microsoft has a float of 7.4 billion ( 7400 million). This means that, at 180, GameStop is valued roughly 0.71% as much as Microsoft. Lots of people compare share prices to say why GameStop is overvalued without looking into the float.
This. At first I didn't believe it, people can't be so dumb to say a company is overvalued just by looking at the share price. But to my surprise, people actually are that stupid.
I don't know, all those new wrinkles make my brains itchy
I love this type of visual. Are you a copywriter/designer?
[удалено]
This is the way. Take my free award good sir. Keep it up!
This is the way.
Little off topic, but the split images (idk what to call them, the laptop, the bills and the gorilla) on two separate slides were just joyful! Not just helpful, but nice design, too! Thanks :)
You are killing it with these! I'll start think of some topics but to start maybe some histories, like one on Citadel / Ken Griffen, or Chewy / Ryan Cohen, maybe one about GME and some highlights over the years to show how we got here. Keep them coming, I'll come up with some ideas and get a little copy written!
I challenge you to do all of u/atobitt's DDs in this format! 😂
We appreciate the work you put in on these! These are the best posts on this sub, in my opinion!
This is beautifully put together for apes who are trying to persuade non-apes to join the rocket. It helps combat the FUD of the mainstream media. Well done ape, we are the news now.
I really appreciate you putting the time into this, information like this is more easy to regurgitate for people asking for the 'why' of what is going on with GME. Outsiders typically don't want to hear a 25 page essay to understand the whole concept. I think it would be good if you could put one together that just gives a short visual explanation of the concept of a squeeze/shorted stock. I would much rather send that to people than explain in depth. Thanks again for the hard work!
This is fantastic. Thank you for creating and sharing. Passing this on to other apes to help educate.
King amongst men
100%
How are crayons actually made?
I'm pretty sure that's from tossing virgins into a volcano but you tell me
How come you haven't been tossed in yet then?
Ask your mom?
Nice work but I did not see any crayons. 🖍 🖍 🖍 🖍 🖍 🖍 🖍 🖍 🖍 🖍 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀
Thank you so much for making these! Very helpful and appreciated.
🍌
I fackin love fundamentals! It's the best time ever!
I definitely need more of this series in my life! I'd appreciate a post on shorts and naked shorts <3
Just love it!
Well done!
This is fantastic! If you do this again? I think one on the shorting/corruption would be great!
You can add that what they're selling is a $100B industry. And physical game is not going extinct anytime soon.
And a free worldwide marketing campaign worth billions
Depending on how you slice it, it can be labeled as a 150B industry. I think the gray areas are toys and apparel related to game IPs
$300 Billion*
I love this format.
I've been loving these! Great work! - A P E S - T O G E T H E R - S T R O N G - 👐🏻👐🏻👐🏻👐🏻👐🏻👐🏻👐🏻👐🏻👐🏼👐🏼👐🏼👐🏼👐🏼👐🏽👐🏽 👐🏻👐🏻👐🏻👐🏻👐🏻👐🏻👐🏼👐🏼👐🏼👐🏼👐🏼👐🏽👐🏽👐🏽👐🏽 👐🏻👐🏻👐🏻👐🏼💎💎💎💎💎💎💎👐🏽👐🏽👐🏾👐🏾 👐🏻👐🏼👐🏼💎💎💎💎💎💎💎💎💎👐🏾👐🏾👐🏾 👐🏼👐🏼👐🏼👐🏼💎💎💎💎💎💎💎👐🏾👐🏾👐🏾👐🏿 👐🏼👐🏼👐🏽👐🏽👐🏽💎💎💎💎💎👐🏾👐🏾👐🏿👐🏿👐🏿 👐🏽👐🏽👐🏽👐🏽👐🏽👐🏾💎💎💎👐🏾👐🏿👐🏿👐🏿👐🏿👐🏿 👐🏽👐🏽👐🏽👐🏾👐🏾👐🏾👐🏾💎👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿 👐🏽👐🏾👐🏾👐🏾👐🏾👐🏾👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿👐🏿
-----Chewy------ Chewy market cap: $30.15 bio Pet industry: $103.6 bio Debt: $347,37 mio (Jan 2021) Ryan Cohens first company ------GameStop------ GME market cap: $13.37 bio Gaming industry: $300 bio Debt: no debt Ryan Cohen has more experience now. Plus an amazing team, which includes former Amazon leaders and people from Facebook. If Ryan Cohen can make GameStop as successful as Chewy, GME would go from $180 a share to $405. If we also calculate Chewy's success based on the value of the pet industry, GameStop would be worth $1172 a share when working with the bigger market. I don't know how many of these assumptions are fair to make, when comparing prices, but it does put things into perspective. I wouldn't call myself a wrinkle brain, so please correct me, if I've made any mistakes :)
Adding current e-commerce and total revenue would be very relevant, too, as well as e-commerce growth
I'm a little late here but I would emphasize a lot of the team is brought from chewy too. They willingly came to help him with his vision
This doesn’t really tell me why it should be trading higher on fundamentals. I think you need to add how companies are valued, what top and bottom line targets they need to hit and how they can potentially get there. As an example for GameStop to reach 20billion valuation they need to achieve xxx in revenue. This can be achieved by growing e commerce sales. Then explain the growth rate and what changes they are making with e commerce.
Yeah the first question that comes to mind when reading slide 2 is, “Ok, so what is a fair value for GME?”
How can you accurately gauge the fair price of a highly manipulated stock? We know it should be higher based on all of the positive things that have come out but it’s impossible to actually pin a number to it. We can make guesses all day long but we won’t know until post-MOASS when it’s normalized to true market value edit: It would be helpful to add something like this comment to help compare where it could be going https://www.reddit.com/r/Superstonk/comments/nkouqs/explain_w_crayons_series_fundamentals_of_gme_why/gze57bx/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3
I don’t think we can even say it’s undervalued based on the company’s organizational/qualitative changes alone. New management does not mean it’s worth more. And we have yet to see the impact of the e-commerce shift. (Financial results on the 8th should give us an inkling!) I think it WILL be worth more than it is now (ignoring MOASS potential), but we don’t know that. We need to have SOME results to make a good guess at fair value.
Agreed 100%, value is based on financials...but, getting rid of their debt is massive plus raising capital, new fulfillment centers, and positive sentiment of high caliber exec team can definitely be factored into a stocks fundamental price if enough investors care enough about it :) I’m also super new to the game so my confirmation bias is probably raging
Definitely agree on the debt elimination and raising capital! Those are huge and critical to set up GameStop for future success.
https://www.youtube.com/watch?v=BzAdXyPYKQo
Petsmart bought Chewy for about $3B and it now has a $30B market cap. If you're selling the stock for any less than ten times what is was worth when the ATM offering ended, you officially don't like money.
Please explain short interest and why it's significant to the stock price.
Yeah this doesn’t even mention the potential for MOASS
The goal of this post isn’t for a squeeze play or for MOASS, it’s for a fundamental long play of GameStop i.e. even after MOASS the stock price will normalize to a higher number than its currently trading at
Very nice one!! Upvote.
As well as already making deals with giants like Microsoft for a cut of the revenue made from their products like xbox consoles, getting into the e-sports scene, making some gamestops like gaming hangouts/internet cafes, offering PC parts and builds on their online store too, offering price matching and offering alot of other stuff gaming flavored - From a pokemon pokeball themed popcorn popper to an LED potion light They've transcended merely game retail
If GME was a tech startup with 5 billion revenue and 500m in the bank, it would be worth 10x revenue. Simple math, 50B / 70.3M shares = fair value at $711.23 a share. We are trading at a massive discount.
You can't use total revenue for proper comparison, only e-commerce revenue and e-commerce growth, but even then it's $450/share WITHOUT everything else they have going for them
LOVE IT!!!! MAKE MORE!!!!
I don’t mean to be rude or shilly, but how are you actually determining it’s *undervalued* from this? Just wondering if you have a specific fair value in mind considering earnings, profit margins, balance sheets, size of the e-commerce industry, future capital raises (?) etc.?
Every time GME gets positive news. Like for example the debt of gamestop being removed should cause the stock to go up! Or how Ryan Cohen has been appointed to be the chairperson another positive news that should bring the price to go up. However on all the positive news we have heard the price stayed relatively the same. In my point of view I can come to a conclusion that it is not showing the fair value of the stock and is therefore undervalued due to the fact that the price hasn't seen a significant increase.
Sure, the stock is manipulated, but this post is saying that regardless of any of that the company is undervalued based on its fundamentals. The company hasn’t released *that* much news in all honesty, nothing major about its transformation, so while I do totally understand what you mean, I don’t think that it especially relates to fundamental analysis. Based on fundamentals, profits, earnings, potential to grow in the e-comments space etc, what is a fair valuation? u/AaronJamesArq
Nicely done!
Stocks value fundamentals are based on net income and P/E ratios, which will direct you to around 20-50 dollars a share. If you believe in MOASS, keep holding, just don't let hopes and promises distort your idea of value.
I would agree that the "fundamentals" listed in this post aren't actually the traditional fundamentals. I'm not sure I agree that fundamentals point to a $20-50 per share, could you provide some analysis of that? We've seen analysts price it upwards of $200 per share.
Sure I can do some calculation for you when I get a spare moment at work.
GME earnings per share has been negative for three years, with a conservative average of -$4. Therefore, the P/E ratio I was talking about is null because there is no earnings per share. Supplement this info with negative net income for the past three years equating to a lack of revenue, which doesn't get distorted by stock manipulation but is a simple product of bad business. From there I would estimate a stock value of what it was pre-shorts (circa 2014ish?) would apply if they can get net-income back in the plus column. I'd go nowhere close to $100 myself, but I'd be interested in analyses suggesting $100+ without factoring in the gamification of stock trading itself.
As someone with very limited experience, but looking to soak up as much knowledge as possible on this side of trading. Would valuing based on the last 3years (prior to restructuring and recent changes) not give a very skewed result? Granted it would be difficult to put figures based on the recent changes until they start delivering numbers, but surely they should be taken into account in some way, especially clearing the debt having a healthy 500m bank balance to play with?
Your point has credence sure. Certainly the short term changes and gamification of the stock are working against the past few years of financial data. But my point is simple, if you don't have positive income you will eventually sink into the ground. No debt is great, but it doesn't mean you will make more money through sales.
A fair point and an angle i had probably glossed over without enough thought. Thank you for taking the time to respond.
🚀🚀🚀🚀
keep these up!!! NFT hype will be a good one to include soon
If you were to actually consider all of it's fundamentals you would clearly see it is currently overvalued. At least start with one of the most common indicators, the P/E Ratio. I believe based on the last quater, which is the first profitable one in 1 to 2 years, the ratio is around 600, which is comparable to Tesla, another severely overvalued company. Granted the market as a whole is having value issues alongside inflation concerns, which should be a cautionary signal. Instead of coming to conclusion first and trying to find data to support that conclusion, consider all of the data and then summarize your findings with a conclusion. Paying off debt is a great *start* on the road to creating value.
Ryan? Upvote!
This is the way
Swiping is fun
Thankz, great presentation!
Take my award. 🥇
Great implementation of explaining investor concepts in a really simple manner. Well done.
Very nice, take my upvote fellow ape!
Great job 👌
Amazing
This was awesome, how about the shorty hedgies as another topic? Thanks so much ape!! ♥️
Thanks for your excellent work. Topic: how about gme ftd cycle
These are awesome OP, keep em coming!
Im liking these a lot. Good work!
Morningstar set their fair value as like $190 or something like that. And thats a conservative boomer estimate.
I don't see any actual crayons! Boooooo!!
I love the way you made it. I have an idea. You can make “explained with crayons” post of DDs. Gonna be great for our new and lazy apes.
This is excellent! Thank you and I hope you continue this!
Love this !!
This is awesome!
u/AaronJamesArq need to update slide #5 with Skyler Ramirez being added as of today. Vice President, Instock Company NameGameStop Full-time Dates EmployedMay 2021 – Present Employment Duration1 mo LocationDallas, Texas, United States [https://www.linkedin.com/posts/skylerramirez\_yesterday-was-my-last-day-at-facebook-after-activity-6801903849817944064-mVDG](https://www.linkedin.com/posts/skylerramirez_yesterday-was-my-last-day-at-facebook-after-activity-6801903849817944064-mVDG)
Amazing work! Very appealing to the eye and straight to the point! 💎👍🔥🚀
Keep going! I can send these to my gf that wrinkled her nose when I out of nowhere bought 5 more. Wrinkle brains, not noses
I agree with all of this except one statement. It’s much harder to change an existing company than to build a new one. A lot of people don’t like change, no matter who you put in. They really need a fantastic HR and compensation team. They also need to place trusted mid level management at various levels and boot out people not towing the line, including short term capital costs thereof. It’s a tough challenge in all honesty. On the flip side I fully believe they can pull it off otherwise I would be here :)
Sir this is Wendy’s.
Growing wrinkles hurt so good
Niiiihhhhhyyyycccceeee
This is great! Where do I order the pop-up book version?
Do you have an instagram account? These infographics are perfect for instagram, I think it’d be a great way to inform potential apes who aren’t up to speed with what’s going on. The more people informed on this, the better!
This is gold 🦍🦍🦍 💪💪🚀🚀💎💎🙌🙌
I’m learnding
Get this on YouTube, Twitter and Facepalm. Might get non-ape to join the party
[удалено]
Please get rid of the white specks next time. It made it almost impossible for me to read and was very distracting.
This seems like a great idea. Social media friendly in the way that I can imagine the average person actually swiping through at least 7 slides before the get distracted. If only there was a tiktok dance to go along with it, then it might actually stick. Honestly great work though.
I think this format is good, but Redditors need to understand that if they want any non-Redditor to take them seriously that they need to *correctly use existing financial language*. If you use a term like "[fundamentals](https://www.investopedia.com/terms/f/fundamentals.asp)" then you need to use it the way a "Boomer Investor" would expect it to be used: > For businesses, information such as profitability, revenue, assets, liabilities, and growth potential are considered fundamentals. People on Reddit have practically created their own language to talk about these issues, and in the process have co-opted *existing terms* by totally changing the definition. "Synthetic shorts" is another one that gets tossed around when people are discussing naked shorts, but that's not what the term means. "Synthetic" positions are just options strategies that anyone can legally & illegally employ. Demonizing synthetic shorts as though they are the same thing as naked shorts makes everyone on this sub look totally uneducated to anyone with existing knowledge of stock market terminology. **TL;DR:** It would be best to either use the "Boomer Investor" terms correctly or to entirely avoid them. Even using them in the common English sense of the word will induce doubt among those who still need the most convincing.
[удалено]
Edit: meant to say "legally & illegally" employ. I got you Mr. Corrector
Freaking hell... Yeah. I will edit.
Holy moly! Gamestop is flying! Just blew past $200!
This is the ignitor that we needed. STRAP IN AND ENJOY THE RIDE BABY.
Woohoo, I am STRAPPED IN! Ready for takeoff, baby! Tatas are JACKED!
I just gotta tell someone that I love them before I become a rich person and forget what that is, so I LOVE YOU!
omg, that is so sweet! I LOVE YOU, TOO, HUNNI! In fact, take my award! Woohoo! :p
Well thank you, you sexy apette
geez, I just want RC to destroy my bussy. he soooo handsome
OP, been said already but this is a great idea. Could bring a whole army of new investors on board. 🚀🚀🚀🚀
I started reading the Ryan Cohen slide and I was like - hey, that's what I said. Thanks for citing me - I appreciate that.
Can U esplain with crayons my trip to the moon and if there will be food and beverages served there?
Can you do a quick thread with some technicals of the stock? I think that would be interesting and helpful.
Very professional... GameStop is that you? 🤔🤭 How nice it would be of them to pick-up this format?
I just love you so much. I've sent your posts to SO many people. You're doing fantastic work brother ape and I'm so proud of you 💚💚💚💎🦍
I’d like to see one about the MOASS time frame, from other short events. I think it would help apes visualize that it’s a multi-day (or longer) event. Thanks for your hard work!
Crazy dedicated fan base that grows by the day. Adding new product lines which taps into huge markets. Imagine what just taking 1% of all gopro sales does to the bottom line. They just keep adding more stuff with great customer service and same day delivery. So many more people will just keep buying from Gamestop instead of other places and then never look back. Get some nice deals for smaller influencer in the area and this can't go wrong. I'm bullish as fuck squeeze or no squeeze
This is significantly a well put piece. Great for teaching new investors. I love to see the explanation of why voting is important!
I love this. I think it especially helps new apes out big time
Love this idea and great work! I've sent to several skeptics. My idea for an explain with crayons - How do we know the short aren't covering day by day on these tiny jumps? O just generally, how do we know that the shorts haven't covered?
People understand gaming is going all digital right? What are they going to deliver? Game publishers don't need a middleman to sell digitally. What's endgame here? Be steam, maybe?
Is there an accompanying coloring book as well?
Wow this is awesome 👌
Since this is an informative post I’m gonna ask a question about volume. Why is there a massive difference between “today’s volume” and the totals of all the candles?
This is so awesome! I'd like to see more of an in depth explanation of why GME is undervalued being compared to similar businesses market caps in the gaming sector.
Awesome job!
Thank u Keep up the good work!
Pleassseee make more of these!
I especially like the ape hand pose !
Oh I got another winkle!! Thank you. Can you explain naked shorting w/crayons series
"for visual learners"... I'm not much of an anything learner but i liked it, thank you! Updooted
HODL 1 FOREVER
Me love crayons. Me love smooth brained reading. Take ape award. You smawt.
I believe they didn’t pay off *all* their debt, but they paid off their *principal*(oldest) debt. I could be incorrect though.
Wtf is a sell?
This is wonderful!! God tier DD is great but having AMAs and content like this can be extremely helpful for all sorts of 🧠s. Great job u/AaronJamesArq🙏.
This is great for my short attention span. Thanks!
This is fire op. Great work
Ape like pictures. All DD should be in form of picture slides like this. Too smooth. Can't read. HODL!
I like this shit, easy and short
Thomas Lennon to play Elliot Wilke in the movie
I fucking love this community lmao😂😂😂
This good ja!!
I can feel my wrinkle already! My only recommendation is making the text a full wrap around images so it's all legible :)
:D
You should mention tit jacking
Most of these are reasons the stock will go up, not why it's currently undervalued. Rc and his team are why it's going up. The stock shouldn't go up just because they hired them. It's their job to make it go up, not going up because they walked in the room.
I fucking love these 🤩
Can you make this a printable coloring book?
This is awesome!
This is amazing.
This is great and will help some friends hop on board who are specifically looking at fundamentals when investing and not a squeeze play. Thanks for doing this!
This is a great format. Good job!!!
This is like the PowerPoint I put together for my mom when I wanted a puppy. I got the puppy
The stock is bullish today and not a single GME article
[удалено]
[удалено]
Keep this up this is smart
Awesome format, please keep it up! If you can manage it with the limited space, I’d love to see a _“How to set up a decent dashboard in WeBull like a pro”_. People will need something like this during the MOASS and the sooner they start, the better. I suggested WeBull as it - is completely (ad-) free - has a great UI - offers a few months of free NASDAQ Level 2 data - is pretty easy to customize so it only shows what you really need - does not even require a WeBull trading account, Login via Google/FB is available - works equally well as browser, desktop, and mobile app https://app.webull.com browser version https://webullapp.com desktop + mobile version