Game Stop (Ticker: GME) , it is one once let me jubilate the company that allows my concern.
The professional work of GME is very simple, its advocate business Wu all the time since sell game namely relevant product, for instance CD of sport lead plane, fittings, game, secondhand game CD business, secondhand sport lead plane is trafficced etc.
I know GME early, be in early student times often the door inn of transient GME, in those day it is one of game shopkeeper with the greatest whole world. Network speed is far still at that time be inferior to now, hypostatic shop sale is quite important to game company, it is only way almost.
The stock that pays close attention to GME is to be after 2008, after financial crisis, GME also did not appear in those days big ox prices, the reason has: The network downloads menace.
This is being returned actually in those days is a menace only merely. 2009-2012 year during, market analyst thinks the mode of GME is put in tremendous hidden trouble, after once network rate rises OK and contented player to be in the home,downloading large game, GME must face enormous income pressure.
At that time lead plane game and computer game are returned is to basically pass CD to have transmission as agency, network download begins to have the symptom of a trend that look up, but network download speed is chilly to large game, so download is not the mainstream.
The network downloads rate year after year to rise is the thing that a big probability can foreknow, inevitable to game industry meeting produces very big impact. Although GME still has very steady income source at that time, the market is not willing to control stake in to be destined to meet on the company body of deficit.
2013, after passing doubt of a few years, as market of lead plane game new and hot with the abidance of GME dilate tries hard, the profit of GME picks up growth again, share price is climbed afresh mount 30 dollars, (city is filled with at that time rate as before very low, still be less than actually 10 times) the market gave up again the doubt with network minatory download.
I also think such doubt is premature for a time, too exaggerated perhaps. Then I take the advantage of the share that GME bought after GME callback.
Actually this is typical " take measures without attention to the changes in circumstances " the investment of type, do not be with the trend easily enemy, this word is not quite right, should instead: Do not want and " the future with taller determinism is enemy " .
But I won't be immersed in this kind of trap easily so commonly, why does GME let me be immersed in went in? The reason has the following:
1, the business of GME is straightaway, and coming for years is one of bibcock game shopkeeper, be sung to decline before, be proved to be the market is premature sentence beforehand.
2, commercial pattern is good, secondhand game and secondhand the business of hardware business is wool interest rate extremely tall, can duplicate the business with gender and outspread extremely tall sex.
3, city is filled with rate is extremely low, company share out bonus is tall.
There was respective major flaw this at 3 o'clock however, even if there is a take out in these 3 blemish, this investment is possible not be out of pocket. Like investing badly to resemble aviation accident occasionally, when all problems appear at the same time, the business becomes very bad turned round.
1, GME all the time since one of sale bibcock that are game and lead plane, however the shop of retail trade is hired in increasing all the time, retail trade is faced with huge impact. Of Telangpu decrease if duty is OK early carry out 5 years, GME has larger fund reserve possibly. In the meantime, because this company is one of bibcock, the determination of company complete transition is not so powerful, bringing about the strategy to although recognize network downloads,go up is future, but did not make very effective program carry out actually. Even if be early,talk a few years with Steam become a shareholder, perhaps talk about joint network cent to sell with game company, live likely more by force than now.
2, on commercial pattern, of GME secondhand game business occupied gain is big. This is meddlesome of course, this specification is secondhand game business is a huge increase. Not only such, secondhand game business very depend on a line to issue hypostatic inn to finish, if you buy game on the net, do not have sale price value 2 times, this all the time since be GME " moat " . However, this business also has a tremendous drawback: It does not have a doorsill, bestbuy also can be done, wo Erma also can be done, perhaps can be in even you the village with me a few players share lira each other secondhand game, petty gain sold is a meaning go. When it is good to discover when course of study of person of the same trade this business is special, it did not think up countermeasure immediately.
3, the most absorbing is GME still is in every year at that time earn much ready money to flow, still made plan of very easy share out bonus at the same time. Of course, because of program of so free share out bonus, the ground connection between my deficit finally reduced one share, but city is filled with rate is low, share out bonus is tall to a business cannot assume gradually for atrophic company sooner or later. Actually the company suits such circumstance to be changed demesne more, but very regrettablly, such circumstance did not happen. . . Those who make a person mysterious is, the share out bonus of this company still still is rising continuously till today. . . Showed the annual interest of share out bonus nowadays to had been achieved 13.8% . . . The government-owned net of Steam and company of of all kinds game downloads a service nowadays already below very mature premise, GME is very difficult turn round advocate of business Wu declining tendency, share out bonus also does not know you go share out bonus for this and purchasing a share again high (unless be debt, can look, because GME it doesn't matter is indebted, repay ability still has) .
After realizing to the platform that game downloads appears on the market, GME did a few things, try to redeem share price drop.
1, the game that develops oneself publishs platform, main needle develops business to independent game. GME bought Kongregate 2010 (game hair is peddling) , sold Modern Times Group MT AB 2017.
2, bought Spring of one wife and children telegraphic network, offer while telecommunication serves, offer secondhand business of mobile phone business.
3, the ThinkGeek of electric merchant firm that bought periphery of movie and TV of a game, the product this company is embedded in the store that has at GME.
4, bought Simply Mac and Zing Pop. Former for the apple the channel of one class cooperates business, basically provide sale of mobile phone, computer and maintenance. Latter is the shopkeeper of periphery of game of movie and TV. These two are bought and of Spring+ThinkGeek buying is a meaning.
GME hope does the product of game and periphery of movie and TV, become the new tycoon of this domain. On the other hand, the one class cent that GME hopes to be able to borrow an apple sells business, provide telegraphic service at the same time, take off as the apple together. . .
However this action is not quite practicable apparently, be in then November 2018, telegraphic department of GME general Spring is whole the price overall that controls with 700 million U.S. dollor sells. The company says to will use this ready money dedicated go up in the sale of circumjacent commodity and dilate.
GME comparatives in ground of the processing on the problem of transition incorrect, this just also is shown in later period. The question with the biggest GME wants to do too much business namely. Itself transition should be dedicated at the dot undertakes, and big company turns around harder than small company, if be a few faces,fly a shop sign, the possibility of introduced from the northern and western nationalities or from abroad card will be less.
In transition period, time cost is tremendous. GME missed particularly good transition chance many times, when now, steam rose, the official game of the big company such as EA distributed platform to also rise, computer had abandoned CD driver, game of the lead plane that return remnant is propped up hard (however lead plane game also begins to use wireless download) , except held the post of heaven Switch to still withhold cassette mode, likelihood GME can glide the ground is a few faster.
I ever had written the article about GME transition, I think GME is possible success at that time. And I also am bought entered the share of GME, after popularizing degree Yuan Chao to imagine when what I discover the network downloads however, my cannot help doing gives the decision that behead storehouse offers, the share out bonus of place favour GME is more, can offset one share loss.
In this case most of failure although the market is really,sentenced beforehand namely premature, bring about after financial crisis GME is long-term low fan. Discover when the market game market is not an imagination in that way later, rapid drive up the appraise value of GME. Actually the market is correct on this case, just they are enough without what draw time line grow look upon problem.
Same, I also did not draw time line enough long, I also place a hope the administrative layer or of this company can turn round situation or to be able to choose to turn a company demesne.
However two kinds of circumstances did not produce above, this is a bad result investor to, and the share out bonus of this company still is rising continuously, what what they do is OK be called " value is destroyed " .
Many elements just produce resemble such value trap integratedly together entirely, it is clear that so investor must be discriminated, must not be not done with a faintness with taller determinism contend, because of us freewill often the trend of unalterable macroscopical incident.
