Anybody in Game? Holding a lot of stock purchased at 66.5p p/s.
Any views greatly appreciated.

What an outstanding set of numbers this morning from niche retail gaming retailer Game Group (GMG). The retailer probably represent something of an anomaly, given that Credit Crunch trading logic would suggest avoiding all but core retailers like the plague

But shares rocketed 12% this morning after the group announced a 67% hike in annual pre-tax, pre-exceptional profits to GBP126.2m, on turnover up 32% to GBP1.97bn. The results are slightly better-than-expected, and in my book a mhttp://blog.blueindex.co.uk/2009/04/game-for-growth/iracle given the operating climate! Game also confirmed current trading is ahead of expectations with a strong increase in gross margins, and says it continues to be very cash generative with a strong balance sheet. And as a sign of confidence going forward, it has increased the final dividend by 25% to 3.71p. Brokers are largely positive, with Altium upgrading from buy to hold on valuation, while Singer Capital have cautioned over a tough fiscal year ahead, with tough comparatives and competition.

The full article is here:
http://blog.blueindex.co.uk/2009/04/game-for-growth/

Interesting article in Shares Mag today with some good broker rec's ..
145p buy price

Looks like i'm on my own here

Ticking up .

And again .

Wedbush Morgan Securities

WE EXPECT JULY U.S. retail videogame-console-software sales data to be released after market close on Thursday, Aug. 13. We forecast sales of $500 million, down 16% compared to last year's $592 million.

Our estimate reflects $475 million in sales from new platforms ([Sony's (ticker: SNE)] PlayStation 3, [Nintendo's] Wii, [Microsoft (MSFT)] Xbox 360, PlayStation Portable and Nintendo DS), as the last generation's contribution lessens in significance.

The July comparison is again difficult (41% growth), and likely will present the fifth consecutive month of double-digit software sales decline

Im not sure how this will impact on GMG tomorrow ,so i'm out with a nice profit, may buy back in if price drops, or news is better than expected..

Game Group sales fall ahead of crucial Christmas trading
Business Financial Newswire


PC and video games retailer The Game Group said this morning that for the 44 week period to 5th December, total group sales were down by 10.8%, while like-for-like group sales for the same period were down by 15.1%.

In the UK and Ireland, total sales were down by 14.3% and lfl sales were down by 16.6%.

In the International business, total sales and lfl sales were down by 2% and 11.5%, respectively.

For the 18 weeks to 5th December, total group sales were down by 11.3%. Group lfl sales for the same period were down by 13.9%.

In the UK and Ireland, total sales were down by 15.3% and lfl sales were down by 16.6%.

In the International business, total sales and lfl sales were down by 1% and 6.7%, respectively.

Game said recent console price cuts from Sony and Microsoft1 have increased demand, though revenues from increased unit sales of these formats have not offset the overall fall in hardware revenues.

Peter Lewis, the Chairman of GAME, said: 'GAME has continued to outperform the market by offering specialist service, compelling bundles and exclusives, including the Call of Duty: Modern Warfare 2 Xbox 360 250GB pack, which was only available in the UK from us.

'We have seen strong competition in all of the markets that we operate in. In the UK, in particular, we have seen significant pricing activity from the supermarkets. However, our overall year to date market share position has improved due to the strength of our consumer proposition, including our trade-in offers, loyalty card discounts, breadth of range and specialist staff. Our preowned business has continued to perform well as it offers real value for our customers, particularly in the current economic climate.

Game expects full year capital expenditure to be in the region of 32m.

For the remainder of this financial year, the next eight weeks historically represent around 25% of our annual turnover. There is a record installed base of 27.2m third generation consoles in the UK market (06/12/2008: 20.4m consoles).

'Consequently, while the wider economic conditions and prevailing video games market trends lead us to approach the critical Christmas period cautiously, the Board believes the Group is well positioned to deliver a solid outturn for the year.'

Game will next report on 12th January 2010 when it will publish sales for the Christmas trading period.

After the steep fall yesterday and again down today maybe a purchase could be rewarded. Another 6.8m consoles in circulation and as reported in Shares last week (a buy rec @ 163.9p) a possible T/O candidate. Currently around 108.5p.
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A timely trade if I say so myself, most unusual for me.
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Time to get back in again.
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Game Group issues profits warning after flat Christmas sales
Sales for five weeks to 9 January fell 13.8%
Pre-tax profits to drop below market estimate of 96m


Game Group saw sales slump amid dearth of new releases and depressed margins from pre-Christmas discounts. Game Group has vowed to make online sales and download services a key part of its business strategy as it reassures investors after a disappointing Christmas.

The festive slump contrasted sharply with a generally buoyant season on the UK high street and sparked a dire profits warning from the retailer . Game's shares dropped as worries intensified about competition from supermarkets and the longer-term threat of the computer games market going through the same upheaval as record labels with gamers moving to downloading products rather than picking them off shelves.

Game, which has almost 700 stores and concessions in the UK and hundreds more overseas, was hurt by a weaker year for new releases and depressed margins as it offered shoppers pre-Christmas discounts. The retailer's like-for-like sales for the five weeks to 9 January fell 13.8% as its domestic market saw a 17.5% drop. International like-for-like sales were down just 5.9%.

The weak Christmas, in which Game typically does around a quarter of its business, left like-for-like sales down 14.8% for the 49 weeks to 9 January. Annual pre-tax profits are expected to be between 87m and 93m, against market consensus of 95.8m and well below last year's record 126.2m.

"The negative trends in the pc and video games market ... continued over the key Christmas selling period despite strong software releases and a sizeable installed base of hardware," said chairman Peter Lewis, citing a strong comparative period the previous Christmas, when there was a greater surge in demand from people who had recently bought a Wii console, PS3 or Xbox 360.

But as Game's shares came under heavy selling pressure for the second time in as many months, Lewis sought to reassure the market about trading since Christmas, including a growing second-hand games business.

Despite supermarket and online competition, Game hopes that new technology this year will drive customers to its stores for specialist advice. It also promised more details with full year results in April on how it aims to be at the forefront of the market's "evolutionary process" by investing in a combination of stores, e-commerce and digital distribution.

In the nearer-term, the company highlighted upcoming releases including Splinter Cell: Conviction and Bioshock 2, announcements on new motion sensing technology from Microsoft and Sony and the fact the UK now has 28.5m consoles installed.

The profits warning compounded a downbeat trading statement in early December and left Game's shares down 5.9p at 100p yesterday. They have fallen a third over the last year. Analyst Mark Photiades at Singer Capital Markets highlighted several challenges.

"Looking ahead we believe key risks include the threat of increased competition (particularly in the lucrative pre-owned market), pricing pressures on key software titles as rivals, especially mass merchants and supermarkets, cut prices, and the longer term structural threats posed by internet retailers and digital distribution," he said.

Gone all in this morning nice quick 4.2% profit

Watch out for bid on Game next week by Gamestop USA

Clubman3509-------------- I've been away for a few hours, GMG volume seemed to have picked up pm, as did the sp, a bid was mentioned in shares mag twice over recent weeks, let's hope you and shares are right.
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Investor's chronicle put out a SELL on Game Group today in view of 2 consequetive profit warnings, increasing competition from supermarkets which offer much, much cheaper prices on various games and a dwindling amout of cashflow.

No mention of bid at all.

Yes falling daily, there may come a level that is seen as attractive to re-enter, arguably the time for the IC to put out a sell recommendation would have been anytime during 2009 when GMG sp was much higher, not at this depressed level---unless there's still a good deal of downside to come.
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It says recovery is unlikely to happen soon, who knows, it may be the next Woolsworth or Jessops?

Heavy vol on the buy side, stakebuilding perhaps.
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I have been shorting it since Dec 2010 done fantastic but out today, as rumour is USA Gamestop making a bid soon.

Well done Clubman3509, there was an article in shares suggesting that same t/o prospect a couple of weeks back, mind you they said buy at a much higher sp than currently. Volume has increased today and the majority of larger deals (200k +) were on the buy side, so I feel someone is accumulating a few.
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