Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, September 14, 2018

Article Excerpt

GAMESTOP CORP., $16.79, symbol GME on New York, is a specialty retailer selling new and used video games as well as video game hardware and collectibles. It does that mostly through 7,276 GameStop, EB Games and Micromania stores in the U.S., Canada, Europe, and Australia. GameStop shares plunged from over $17 a share to almost $13 in late August as investors anticipated the release of poor quarterly results. However, the shares rebounded when, at the same time the company reported its results, it announced it was actively engaged in discussions about a possible sale of the company. Private equity firms Sycamore Partners and Apollo Global Management are reportedly potential buyers. For the three months ended August 4, 2018, GameStop’s revenue declined by 2.4%, to $1.65 billion from $1.69 billion a year earlier. Earnings, excluding one-time items, were $4.7 million, or $0.05 a share. That’s down 68.5% from $14.9 million, or $0.15 a share. The company will likely have a good holiday season: a strong…