And 2.Adderall and Ritalin, medications used to manage symptoms of attention deficit/ hyperactivity disorder, have long been considered study aids for people without ADHD.Which is 13.8 times greater than December 31, 2020’s market cap of $1.3 billion.GameStop has a market cap of $17.6 billion.When calculating the company’s valuation metrics these results use fiscal 2018’s $8.3 billion in revenue so as to be as generous as possible. Note that while GameStop’s fiscal year ended on January 30, 2021, and would normally be labeled fiscal 2021, GameStop calls it fiscal 2020. Fiscal 2022 revenue: $5.37 billion estimate.Fiscal 2021 revenue: $5.43 billion estimate.GameStop may be able to shake up its business enough to recover at least some of downturn but it won’t happen overnight. and worldwide economies GameStop was slowly losing revenue from fiscal 2016 to 2018 then had a sharp drop-off in fiscal 2019 (ended in January 2020). GameStop’s valuation also doesn’t make senseīefore Covid-19 derailed the U.S. Shorts are down $294 million or 10%, last weekĭusaniwsky’s chart on GameStop is available via his tweet.This includes up $114 million on Friday’s decline of 3.8%.Shorts are still down $6.77 billion in year-to-date mark-to-market losses.GME short interest is $2.99 billion of $17.6 billion market cap.Recap using Friday’s stock price of $248.36: At some point in time reality should catch up what can easily be called an overvalued stock.ĭusaniwsky calculates that there continues to be moderate short covering in GameStop with short sellers covering 262,000 shares, worth $68 million, over the last 30 days but most of that short covering occurring over the last week with 145,000 bought-to-cover, worth $38 million. June 4, 2021: $21.6 billion with $5.47 billion in revenue = 3.9x market cap to revenueĪt the current valuation AMC’s shares are 12.7 times more expensive than 2017’s valuation level. To remove the impact of Covid-19 lets use 2018’s and 2019’s revenue, which are essentially the same, of $5.47 billion and Friday’s market cap of $21.6 billion (compared to $11.8 billion last Friday). 31, 2020: $248 million with $1.24 billion in revenue = 0.20x market cap to revenue 31, 2019: $747 million with $5.47 billion in revenue = 0.14x market cap to revenue 31, 2018: $1.48 billion with $5.46 billion in revenue = 0.27x market cap to revenue 31, 2017: $1.58 billion with $5.08 billion in revenue = 0.31x market cap to revenue Probably the best metric is market cap to revenue. Trying to use earnings or cash flow as a valuation tool would show exorbitant results and not be of much use. Why the stock could round trip: Valuationīefore Covid-19 hit the economy in 2020 AMC had lost money and had negative free cash flows two of the three previous years. Shorts are down $1.99 billion or 52%, last weekĪMC short interest and stock price Ihor Dusaniwsky, S3 Partners.This includes up $302 million on Friday’s decline of 6.7%.Shorts are now down $3.91 billion in year-to-date mark-to-market losses.AMC short interest is $4.53 billion of $21.6 billion market cap.Short sellers have covered about 796,000 shares, worth $41 million, over the last 30 days, with buy-to-covers growing over the last week with 1.40 million covered, worth $72 million.” As AMC’s stock price came back down the number of shares shorted steadily increased until mid-April, where it has essentially remained around 90 million.ĭusaniwsky wrote, “We have seen AMC short covering this week, but by no means are we seeing a wholesale short squeeze in this stock at the moment. As the chart below shows the number of shares being shorted fell significantly in late January (the gold line) when the stock had its initial pop due to wallstreetbets Reddit crowd jumping in.
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