GameStop has reported the much-anticipated results for the fourth quarter ended December 31st, 2020 and fiscal year 2020.

 

Achieved 6.5% Increase in Comparable Store Sales During Fourth Quarter, With Global E-Commerce Sales Increasing 175% for the Fourth Quarter and 191% for Fiscal 2020

Expense Reduction Initiatives Drove $409 Million, or 21%, SG&A Improvement in Fiscal 2020

Strengthened the Balance Sheet and Ended Fiscal 2020 With $635 Million in Total Cash, Laying the Foundation for Transformation

Announces the Appointment of Technology Veteran Jenna Owens as New Chief Operating Officer

 

Global E-Commerce sales (included in comparable store sales) increased 175% and represented 34% of net sales in the fiscal 2020 fourth quarter versus 12% of net sales in the fiscal 2019 fourth quarter.

We’ll be going more in-depth on these results shortly. For now, all eyes are on the conference call @ 5 PM ET. Tune in here.

Source: GameStop News Release

GameStop will report earnings after the market closes on Tuesday, March 23, 2021. This will be followed by an investor conference call at 5:00 pm Eastern

During the Q4 conference, the viewer cap was reached before it had even begun, so tune into GMEdd.com where we will be livestreaming the call for everyone.

Read the full transcript here.

Source: GameStop News Room

When New Jersey teacher Steven Titus sent emails to GameStop Corp. complaining about the slow shipping of an order, he received a late night call to apologize – from a director on the video game retailer’s board.

Ryan Cohen took it upon himself to speak with the New Jersey teacher.

“I just got your email, I’m so sorry this happened. Let me get to the bottom of this,” Ryan Cohen told Titus.

Ryan Cohen then asked GameStop’s new customer service chief Kelli Durkin, who spearheaded initiatives at Chewy that included written personal notes to customers, to look into the matter.

Titus was reimbursed for his purchase, even though he had not requested a refund and was only complaining about the tardiness of his order.

This phone call is stated to have occured in early March.

As previously speculated, it’s safe to say that some of Ryan’s first initiatives at GameStop will be to revamp the customer service experience, as proven by his recruiting of Kelli Durkin into the role of Senior Vice President of Customer Service at GameStop.

Source: Reuters

The Ryan Cohen lead transformation continues, as GameStop Corp. announces via regulatory filing  Chief Customer Officer Frank Hamlin will be departing on March 31st, effective today. Hamlin has served as one of GameStop’s Executive Vice Presidents, a role he was appointed to in June of 2019. 

As CCO, Hamlin’s responsibilities have revolved around defining and driving the company’s overall customer-centric initiatives as it relates to Marketing, customer loyalty, the omnichannel business, strategy and innovation. He previously served as GameStop’s Chief Marketing Officer, where he oversaw all aspects of strategic marketing, as well as leading cross-functional teams in delivering consumer-and brand-centric strategies, pursuing new business opportunities, and driving new customer acquisitions and brand affinity programs to help make video game culture come to life in every neighborhood

Frank describes himself on LinkedIn:

Experienced Executive and Board Service in the retail industry, leading transformative customer experience innovation and profit maximization of large digital customer ecosystems.

Frank had returned to GameStop in 2018, after having served as CMO from 2014 to 2016.  In the interim, he was Executive Vice President and CMO for Tailored Brands, the parent of Men’s Wearhouse, Jos. A Bank, and Joseph Abboud, among others. Prior to GameStop, Frank served in Marketing and Operations leadership roles for other notable organizations, including Guitar Center, E-Miles, LLC, H.E. Butt Grocery, and Brierley & Partners to name a few. 

Source: SEC

Shortly after the “GameStopped” House Committee Hearing concluded today, Ryan Cohen shared a photo of his late father, Ted Cohen, on Twitter with the caption, “Superman lives forever 🙏” 

We don’t believe there is any reason to analyze this tweet, and appreciate Ryan Cohen sharing his personal life with us. So instead, we would like to use this opportunity to honor his father as well, and tell his story.

In an Entrepreneur.com article written by Ryan, he describes his father:

Everything I know — from empathy to the principles of making money — I learned by following in the footsteps of my late father, Ted Cohen. We spoke for hours every day. He was, and always will be, my best friend, advisor and biggest advocate.

Ryan goes on to state that his father Ted was a successful glassware importer with an impeccable work ethic, having never missed a day on the job. Ryan believes that if he were here today, he would be worried about the millions of unemployed and struggling businesses across the country. The warehouse workers, drivers, construction workers and small-business owners — those are the people he respected most.

Ryan states that when he looks back on his life and influence, the following five principles Ted showed him were critical to his success building Chewy.com and investing. 

  1. Watch your expenses.

    Ryan believes that disciplined capital allocation is one of the most important skills for running a successful business. Ryan credits Ted with granting him the privilege of learning this firsthand.

  2. Delight your customers.

    Chewy’s focus was fast shipping, competitive pricing and providing customers with a hyper-specialized experience. Ted showed Ryan how building lifelong relationships with customers was far more valuable than optimizing for short-term profits.

  3. Be the person others want to follow.

    Ted Cohen led by example, but not in a deliberate way. It’s who he was, says Ryan. Ted never patronized anyone, as he admired the blue-collar worker. Ryan would watch him roll up his sleeves and help his employees move shipments of glassware from trucks into the warehouse, then put his suit jacket back on, shirt drenched in sweat, and do administrative work. Ryan says he never saw anyone work harder.

  4. Take the long view.

    Ted Cohen was never looking to make a quick buck. He had no interest in material possessions. Every year, through thick and thin, Ted invested his savings into the stock market. He believed the real money was made through time in the market, not timing the market

  5. Trust yourself.

    Entrepreneurs don’t operate with a handbook. Ted taught Ryan how to be independent and trust his own moral compass. Ted encouraged him to separate myself from the herd and think critically.

We ask our readers take a moment to study the entirety of Ryan’s May 4th, 2020 tribute to his father Ted. 

A warm thank you from us to Ted Cohen for mentoring such a wholesome and forward-thinking son. He would be very proud of what you have accomplished, Ryan. God bless.

Source: Ryan Cohen on Twitter

 

 

On Wednesday, March 17, 2021, from 10:00 a.m. (ET) full Committee Chairwoman Waters and Ranking Member McHenry will host part II of a virtual hearing entitled, “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide.” 

Recognize any of these faces? We doubt it.

As previously posted, the House Committee on Financial Services will host part two of the hearing tackling the GameStop phenomenon tomorrow. The hearing will be live-streamed on Wednesday, March 17, 2021, at 10:00 am ET.

The hearing will begin with a statement by Sal Arnuk, Partner of Themis Tradis LLC, who will mock retail investors that began investing on platforms such as Robinhood, stating:

Robinhood’s average account size is about $5,000, compared with TD Ameritrade’s $110,000. As such, they have created a unique product –small emotion-driven orders that tend to be predictable.

Read Sal Arnuk’s full statement here.

Arnuk will be followed by Michael Blaugrund, Chief Operating Officer of the NYSE, who will use his time to advocate for modernizing shareholder disclosures, providing transparency for securities lending, eliminating competitive barriers for public investors, and accelerating trade settlement to T+1.

Short selling is an essential practice for liquidity, price discovery and risk management, but the securities lending market on which it depends is opaque and inefficient…. The SEC should consider establishing an analogous Consolidated Tape for securities lending. A system that provided for publishing the quantity, fees and/or rebates, duration and other material terms for each stock loan without attribution would provide issuers, investors and regulators the necessary data to better assess the risk and return of establishing a short position, while protecting the identity and intellectual property of any individual market participant.

Read Michael Blaugrund’s full statement here.

Following Blaugrund’s statements, Dr. Vicki Bogan will speak, Associate Professor in the SC Johnson College of Business at Cornell University. Dr. Vicki Bogan will state that she has advocated for investing in the household for 20 years and believes that Robinhood requires changes to avoid “gamification.”

Prohibit user interface mechanisms (e.g., push notifications) that have been designed to increase more trading volume without regard to consumer priorities or risks.

Read Dr. Vicki Bogan’s full statement here.

After Dr. Vicki Bogan, we will hear from Alexis Goldstein,  Senior Policy Analyst at Americans for Financial Reform, who is considered a “Wall Street Traitor” who joined the Occupy Wall Street movement. She will offer her support for WallStreet Bets users, and ask that regulators examine the institutional footprint during GameStop’s volatile periods.

My time on Wall Street also showed me that major institutional players guard information about their own positions, while simultaneously spending large sums of time and resources trying to glean the positions of their competitors — whether through market data, news stories, or rumors. Thousands of users of the WallStreetBets subreddit posting their positions and their future plans for those positions is a source of data that major Wall Street players will mine for information. Many will likely have created software to extract and analyze the content of the posts, and made, trading decisions based on it.

Read Alexis Goldstein’s full statement here.

Alan Grujic , CEO of All of Us Financial, a San Francisco-based online broker, will speak after Goldstein. Alan will also advocate for T+0, after endorsing his platform’s use of payment for order flow. Alan will also express his baseless concern that GameStop traders were being manipulated.

Social media can empower individuals, but also influence them. When does influence become manipulation? As a professional trader and investor, I fear traders in GameStop were being manipulated to take actions not in their best interests. Manipulation is illegal, and I expect regulators have paid close attention and will take appropriate action.

Read Alan Grujic’s full statement here.

The committee will also hear questioning of Dennis Kelleher, President and Chief Executive Officer of Better Markets, and Michael Piwowar, Executive Director of the Milken Institute, who have not prepared statements at this time. 

If you were looking forward to hearing from some more of the key players in the price volatility of January, you are out of luck. Robinhood has been made the scapegoat, and those with the deepest pockets are already at work to advocate shutting them down.

GMEdd.com will host the hearing LIVE tomorrow and host a discussion on the GMEdd.com Discord server.

Source: U.S. House Committee on Financial Services



We’re trying something new.

When the U.S. House Committee on Financial Services held their GameStop hearing, we held a live chat. For the first time, GMEdd.com readers were able to conjugate in a fast-paced discussion, sharing their thoughts on the stock and the madness, and it was a success.

We’re hoping to foster new discussions through opening an Official GMEdd.com Discord server. Here, we can all share our analysis, research, stock-tips, and even memes, and there won’t be any special privileges, paid access, or invite-only nonsense. 

If this sounds like something you are interested in, come check it out!


Join in the next 24 hours for a Day One badge, to recognize your early support!

Source: Discord

Ryan Cohen has dumped another tweet on all of us, but this time it was after-hours.

On the surface, his last tweet was about vomiting, and this one is about pooping. We all know there’s much deeper meaning than that though. This image is also another gif from the movie Dumb and Dumber, as was his famous “Peanuts” tweet that has been since branded into the GMEdd.com logo.

The gif stems from this scene in the film.

There’s already some leading theories on what the gif could mean…

  • The “dump,” referring to yesterday’s intraday crash, was unnatural.
  • Cohen has explosive news.
  • This is the scene after, “No way, we landed on the moon!”
  • Ryan Cohen is clearing out the system, with the system being the old GameStop management.

We’ll be sure to update this post with any further developments on this tweet.

Source: Twitter

In this Benzinga Power Hour clip from today, March 10th, leading GameStop analyst and GMEdd.com Co-Proprietor Rod Alzmann discusses the GameStop’s latest corporate developments alongside the rapid trading halts amid groundbreaking price volatility. Rod and Luke also reflect on the history of GameStop’s share price and what has caused certain price action.

While live on the air, GameStop shares reached a sixth trading halt in only a matter of hours.

Source: Benzinga on YouTube