GameStop: Lack of Strategy Is More Food for the Bears

GameStop (GME) might have delivered a better-than-expected set of earnings last week, but investors instead took the opportunity to offload shares in a hurry. The stock shed 27% of its Read More... The post GameStop: Lack of Strategy Is More Food for the Bears appeared first on TipRanks Financial Blog.

GameStop: Lack of Strategy Is More Food for the Bears

GameStop () might have delivered a better-than-expected set of earnings last week, but investors instead took the opportunity to offload shares in a hurry. The stock shed 27% of its value in the subsequent session. Of course, GameStop stock has been a law unto its own in 2021, soaring to unimaginable heights on account of the short squeeze phenomenon and as the poster boy for the meme stock movement.

It is a name that does not play by Wall Street’s rules, and as such Wedbush analyst Michael Pachter says the earnings results were of little interest to the big chunk of retail shareholders.

So, what was behind the charge to the exit gates?

As part of the earnings release GameStop made a pair of major announcements. The company said it will fill the vacant CEO and CFO positions with two Amazon “veterans.” While the names are unfamiliar to Pachter, both are highly experienced in the ecommerce field and Pachter remains “optimistic that they will capably fill the shoes of the departed CFO and soon to depart CEO.”

Additionally, the company announced it will sell more stock - up to 5 million shares “at the market." I.e., the shares can be sold “whenever allowed under quiet period rules.”

Pachter believes the former carried more weight in pulling the share price under, although it is only partly to blame.

“We think that the sell-off had little to do with the fundamentals and everything to do with the company’s failure to reveal its strategy,” the analyst said. “We believe that the Reddit Raiders were mildly disappointed in the appointment of two more experienced Amazon executives to the CEO and CFO roles, as the GameStop meme appears to include some belief that the company will build a blockchain trading platform.”

All in all, Pachter rates GME shares an Underperform (i.e. Sell), although due to the extra cash from the new shelf registration, the price target is raised from $39 to $50. The new figure still implies a dispiriting ~78% drop from current levels. (To watch Pachter’s track record, )

Baird’s Colin Sebastian also bemoans the company’s lack of a clear strategy. Although the analyst says the company has been thrown a lifeline due to the “console transition period,” Sebastian essentially thinks GameStop has no coherent plan, noting “games are not dog food,” and sensibly claiming a company’s fundamental, long-term prospects should not be based on memes.

“As GameStop’s board continues to shuffle the management deck, the goal to transform into a ‘technology’ company that delights gamers remains mostly a mystery, particularly as the video game industry accelerates the shift toward downloads, streaming and cloud services,” the 5-star analyst opined.

Sebastian’s price target is even harsher than Pachter’s, and at $25, suggests share depreciation of ~89%. The analyst has a Neutral (i.e. Hold) rating for GME stock. (To watch Sebastian’s track record, )

Other Street analysts are hardly more optimistic. Based on 1 Buy, 2 Holds and 3 Sells, the stock has a Moderate Sell consensus rating. The average price target clocks in at $70, implying ~69% downside in the year ahead. (See GameStop stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post GameStop: Lack of Strategy Is More Food for the Bears appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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5 Budget-Friendly Staycation Ideas For The Summer

Planning a staycation minimizes costs, helping you to have a great time while keeping things budget-friendly. Here are a few staycation ideas. Full Story The post 5 Budget-Friendly Staycation Ideas For The Summer appeared first on MintLife Blog.

5 Budget-Friendly Staycation Ideas For The Summer

Summer is typically a time when many families look to take some time off. With school out, the traditional “summer vacation” brings back memories of kids stuffed in the back of a minivan, on the road to some exotic (or less-than-exotic) destination. As we come out of the COVID-19 pandemic, more and more families are looking for ideas to get out of the house without having to travel too much. 

For most vacations, the two biggest costs are lodging and the travel costs to get to the final destination. Planning a staycation minimizes or eliminates these two costs, helping you to have a great time while keeping things budget-friendly. Here are a few budget-friendly staycation ideas for the summer.

What is a Staycation?

A staycation is a portmanteau of the words “stay-at-home” and “vacation” and is, as the name implies, a way to take a vacation without traveling too much. Staycations can come in many different flavors. In some staycations, you take a variety of day trips but return each night to your own home. In other staycations, you might travel to more local or regional destinations instead of going too far.

Be a Tourist in Your Own City

One of the most popular staycation ideas is to be a tourist in your own city. To take a staycation like this, you might look at some of the top things to do in your city. Look at your city not as a resident, but as a tourist — what would a tourist do if they only had a few days to visit your hometown? 

Chances are good that even if you’ve lived there for many years you may not have seen all of those attractions. Take a few days to visit some of those sites and see your city from a fresh new perspective. A few years ago, my family and I spent a few days touring our hometown of Cincinnati like tourists. We went to the top of the tallest building in the city, visited the US Air Force Museum, saw a Cincinnati Reds game, and had a great time. Each night we came back home and stayed in our own beds.

Camping

Another staycation idea is to hit the great outdoors. While camping may bring back traumatic memories of childhood summer camps gone bad, there are a lot of different ways to camp these days. In addition to a traditional tent in a campsite, many state and national parks offer cabins and other “glamping” experiences that you might enjoy more. That can give you the right mix of both outdoor and indoor comforts.

Movie Night

Another budget-friendly staycation idea for this summer is to have a movie night (or two). In order to make a movie night more of a staycation, consider how you can spice things up a bit. You don’t want to just turn on Netflix for a few hours and call it a movie night! Some ideas include renting a projection screen, moving your movie night outside, or combining movie night with a special dinner.

Visit the Beach

A day at the beach is something that many people enjoy and can be a great thing to include in any staycation. Of course, how you might visit a beach will depend quite a bit on where you actually live. Still, even if you don’t live near the Atlantic or Pacific Oceans, you can still include a beach day on your vacation. Consider spending the day at a nearby lake or river, or even just visiting a local swimming pool.

Food Tour in Your Own City

Another great staycation idea is to have a food tour in your own city. Many cities have sponsored food tours or tours that you can pay for. Depending on your budget, interests, or the number of people in your family, that can be an option. But if you’re looking to keep things under budget, consider doing your own city food tour. Depending on where you live and how long you’ve lived there, you probably already know the restaurants and foods your city is famous for. Take a day and visit a few of them to make your own food tour at a fraction of the cost.

The Bottom Line

It’s important to your mental health to be able to take a break from the regular daily grind and get away for a bit. But taking a vacation doesn’t have to break the bank. The two biggest costs for most vacations are your lodging costs and the travel costs to get to your destination. Planning a staycation minimizes or eliminates these two costs, helping you to stay within your budget while still having a great time.

Which of these staycation ideas do you like most? What would you add to the list?

The post 5 Budget-Friendly Staycation Ideas For The Summer appeared first on MintLife Blog.

Source : Mint Personal Finance More   

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