Gamestop death watch part 2:
About a week after I posted this, Gamestop announced a $300 million modified Dutch auction share repurchase. Analysts were ecstatic. To quote
Barron's, "Not so fast, GameStop bears", as GameStop's stock shot upwards 8% overnight from $5.02 to $5.44. CEO George Sherman, whose past entertainment retail management experience includes absolutely ****ing nothing, confidently stated, "While improving our operations and capturing efficiencies in our business to drive returns for our shareholders continues to be the top priority for the new leadership team, we view the purchase of our shares to be financially compelling at this time." In other words, the company has no strategy beyond squeezing the rock they've already been given, and the leadership team has no clue what they're doing, but everybody else is buying back their stock so probably GameStop should do it too.
The stock is currently back down to $5.30 or something in after hours trading. For hilarious reference, their earnings per share are $-7.43; yes, negative seven dollars and forty-three cents, which means the company is burning through so much money that they could immediately cease all business operations, take the entire company private, give themselves $200 million in bonuses, and it would still be cheaper than staying in business. Which, of course, is
exactly what's going to happen.