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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Nya_Quy who wrote (62936)	12/2/2019 12:45:59 AM
From: bruwin	Respond to of 78476

" .... the business is not going bankrupt anytime soon. It is just experiencing a rather long down-cycle" I see. But I thought you previously said ... "The company in its current form is most probably toast next decade" ".... it's about buying an ongoing business with substantial room for appreciation" Yes, I would agree with that general philosophy. But shouldn't one look at a company's financial fundamental parameters and consider the possibility of when that may happen and when it is most UNLIKELY, YET, to happen. If, for example, we look at the 'history' of GME's Bottom Line performance we see :- 1) Loss from 2Q 2019 to 3Q 2019 = 591.2 - 43.2 = -1268% 2) Loss from 3Q 2019 to 4Q 2019 = 673 - 591.2 = -14% 3) Loss from 4Q 2019 to 1Q 2020 = 673 - 694.4 = -3% 4) Loss from 1Q 2020 to 2Q 2020 = 694.4 - 1084.8 = -56% So it seems to me that GME is not yet showing an ongoing improvement in its business performance. Also seems to me that maybe one should wait until that trend started to reverse, and once that was confirmed, one could then regard the company as being somewhat undervalued, based on whether or not its share price was then still in a downtrend. Irrespective of any hype or references to FCF's, EV's, etc, it still is really about whether or not A COMPANY CAN MAKE A REGULAR, ONGOING, PREFERABLY INCREASING, BOTTOM LINE PROFIT. If it can't achieve that then maybe one should put one's hard earned money elsewhere. " .... The core, however, is the idea of value not being equal to price" Well, the way I see it (Based VERY LARGELY on the way someone like Buffett sees it) is that if several strategic parameters, i.e. financial ratios, within a company's Financials are positive then that is generally a reflection that the company is PERFORMING WELL AS A BUSINESS and that overall business performance will be reflected in its upward Price Trend because the Market sees Positive Investment Potential. If we look at these ratios within GME's financials there's no current indication that the company is performing well as a business. As a result we see that reflected in its chart, i.e. the "price" that you refer to. Needless to say, don't let that stop you from posting ideas ........