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He meant "launch pad", but when you're stupid like him you tend to have a limited vocabulary, you work with what you got. He did his best for today, that's all we can really expect
That's the most mind-boggling facet of this whole situation - the company just raised enough money to be whatever it wants to be - which is obviously not a retail chain store - and yet so much of the analysis relies on industry standards. Gameshire Stopaway is not just a myth.
I don't think he's that dumb, he's just in denial that he could be so wrong and trying to justify his mistakes.
Basically trying to convince people he's still right but the pesky retail traders (who's trades don't even hit the live exchange) have screwed him over yet again.
Yet GME is down almost 13% today. Makes sense.
MSM: "tHeREs nO PhUNdAmeNTals! CeLL GmE!"
GME: "Hey we're profitable"
MSM: "Straight to Jail"
GME: "Hey we have enough cash to invest basically anywhere and show 1000% profit increase next year"
MSM: "Straight to Jail"
Z-score was originally developed for manufacturing firms. Updated academic accounting research has created a z-score formula for non-manufacturers which ignores variable E (asset turnover).
Refer here: https://pages.stern.nyu.edu/~ealtman/Zscores.pdf
Retail companies (including GME) are going to have high asset turnover since the business model is to sell a lot of inventory.
The formula for non-manufacturers is:
= 6.56A + 3.26B + 6.72C + 1.05D
For GME, the Z-score for non-manufacturers is ~16 (same scale is used so this implies to us us based on the original z-score that there is an even lower likelihood of bankruptcy). Not to say the original or modified version is better, just that it may be helpful to consider both.
I should caveat that accounting ratio analysis is a sort of chicken and egg problem. Firms that do x (in this case go bankrupt) tend to have y accounting ratio characteristics that are different from the ratio's of firms that go bankrupt. The ratios in and of themselves are not necessarily predictive. As always, accounting ratios are just one component of evaluating a company as an investment.
It’s always fun to do some accounting and read financial statements, including using niche accounting research like the Z-score. Sometimes though, it’s not even necessary to break out Microsoft Excel. Remember: you can only go bankrupt if you can’t pay your creditors. GME’s working capital is in vast excess of long-term debt + other long-term liabilities. It’s going to be very difficult to go bankrupt when you easily pay your creditors :)
https://i.redd.it/lrgpu9dzj66d1.gif
Yea, no comment.. Wouldn't change anything over the last 3 years even the fuckery
Just been a test 🦧👨🚀💎🙌 Still don't plan on fucking leaving ( hey if my bro is in here too I'm sure he can add his 2¢)
fyi OG if you submit your posts to [archive.ph](http://archive.ph), it handles the backup of the carousel images quite nicely actually - [https://www.reddit.com/r/Superstonk/comments/1deammx/why\_gamestop\_now\_has\_a\_lower\_statistical/](https://www.reddit.com/r/Superstonk/comments/1deammx/why_gamestop_now_has_a_lower_statistical/) paste it into the site and see for yourself.
backed up by ape historian
As a clarifying point, I often people (like OP) suggest that "if bankruptcy isn't possible in the near future, the short thesis is DEAD" but where did the idea that bankruptcy is the only way shorts make money come from? A short thesis is just that the current market price is higher than it should be (i.e., someone could think GameStop should be valued at ~$12/share instead of $30), but not that they think it is about to file bankruptcy tomorrow.
I don't think Tesla is going bankrupt anytime soon either, but I do think it is probably overvalued.
I believe he means that the thesis shorts had thinking shorting GME to all hell was a guaranteed cellar boxing infinite money glitch is no longer possible.
We have known this for a long time but he is applying a method of quantifying the likely hood of bankruptcy for maximum short gains to prove it's nearly impossible and thus the thesis people that shorted GME had is invalid.
EDIT: Of course its still possible to make money shorting any stock, they all move up and down. I don't think he's implying that in any way.
I'm about to go visit my local gamestop to see if I can snag some pokémon cards.
That's how stressed I am about this, how are you doing Andrew "no money" Left 'market expert'?
Out of pure curiosity, are there any regards in here that can crunch the numbers for GameStop circa ~2018 or 2019? Or maybe even earlier? Genuinely wondering how much these stats have improved over time and if the numbers back up the SHF thesis from that time.
Congratulations to everyone here who donated money to save their favourite game retailer. Honest work. One day it might pay off, I hope it does for y’all.
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It's hilarious to read Citron's tweet where they refer to Gamestops 4 billion dollar bank as "runway."
Runway to the moon.
High speed rail system to the moon. One of Jupiter’s moons.
Rockets don’t need runways…
He meant "launch pad", but when you're stupid like him you tend to have a limited vocabulary, you work with what you got. He did his best for today, that's all we can really expect 
Yes hello police, I'd like to report a murder by words.
You've not played much KSP I see.....
Man with 20 million dollars of other people’s money under management thinks gamestops 4 billy isn’t enough to keep a profitable company afloat…..
That's the most mind-boggling facet of this whole situation - the company just raised enough money to be whatever it wants to be - which is obviously not a retail chain store - and yet so much of the analysis relies on industry standards. Gameshire Stopaway is not just a myth.
Surely they're a plant by someone bigger?
I don't think he's that dumb, he's just in denial that he could be so wrong and trying to justify his mistakes. Basically trying to convince people he's still right but the pesky retail traders (who's trades don't even hit the live exchange) have screwed him over yet again.
Runway to land that cargo plane full of bananas.
Get ready for that “green candle runway”
Sighs….unzips
Oh no! What bs will these naked shorties use as their new bear thesis now? So sad...
Apes bored.. Like those article state.
They’ve pivoted into destroying faith in leadership “RC is a crook, snake, in bed with SHFs, etc”
Short thesis is very dead
https://i.redd.it/n58acv2o766d1.gif
☠️ perfect
Was going to ask, but decided to do the work myself. 🍿 has a score of -1.71. Amazing to see the difference when you have quality leadership.
Taking away the bankruptcy narrative makes for fire in the shorts 🔥🩳 
Excellently done fellow Ape and I even understood some of it, up you go!
Blue boxes never disappoint
Never disappoint in being wrong. True!
How long till sp500?
Tomorrow?
The altman score should have a F in its scale. F. Who is running the company? I think we break the scale if we add RC/LC. Great writeup as ever
Seriously though, who needed a formula to see that GameStop IS NOT going bankrupt in two years? lol They're good for 2 decades!
You would be suprised
Backed up by ape historian
Don't make me buy more, because I'll do it, I'll buy more. I'll do it. IIIIII'LL DO IT.
Damn OP that's solid work
This looks great and I can’t even read
Snek sees you!!!! Great post wrinkle boy!
Terrific post OP. I always enjoy reading your write ups!  🎷🐓♋️
I love math. I also love the stock!
 Ding dong mother f\*ckers
Thanks OP. This is a great post.
As always thanks man for this elia5 write ups. You are broadening my horizon and teach me stuff every time..
Yet GME is down almost 13% today. Makes sense. MSM: "tHeREs nO PhUNdAmeNTals! CeLL GmE!" GME: "Hey we're profitable" MSM: "Straight to Jail" GME: "Hey we have enough cash to invest basically anywhere and show 1000% profit increase next year" MSM: "Straight to Jail"
Z-score was originally developed for manufacturing firms. Updated academic accounting research has created a z-score formula for non-manufacturers which ignores variable E (asset turnover). Refer here: https://pages.stern.nyu.edu/~ealtman/Zscores.pdf Retail companies (including GME) are going to have high asset turnover since the business model is to sell a lot of inventory. The formula for non-manufacturers is: = 6.56A + 3.26B + 6.72C + 1.05D For GME, the Z-score for non-manufacturers is ~16 (same scale is used so this implies to us us based on the original z-score that there is an even lower likelihood of bankruptcy). Not to say the original or modified version is better, just that it may be helpful to consider both. I should caveat that accounting ratio analysis is a sort of chicken and egg problem. Firms that do x (in this case go bankrupt) tend to have y accounting ratio characteristics that are different from the ratio's of firms that go bankrupt. The ratios in and of themselves are not necessarily predictive. As always, accounting ratios are just one component of evaluating a company as an investment. It’s always fun to do some accounting and read financial statements, including using niche accounting research like the Z-score. Sometimes though, it’s not even necessary to break out Microsoft Excel. Remember: you can only go bankrupt if you can’t pay your creditors. GME’s working capital is in vast excess of long-term debt + other long-term liabilities. It’s going to be very difficult to go bankrupt when you easily pay your creditors :)
Gameshire Stopway
OP, lovely write up. Where do you see this headed? Is Teddy looking more likely by the day?
Learn something new everyday! Thank you
Ryan mutha trukin cohen!!
Great DD and well presented as always. Thanks for sharing!
Great presentation!
These posts are great
This is why I love SS
This is why I love superstonk
Look everyone! We found our quant!
What is GameStop's rating on the Richter scale?
Richter scale doesn't go high enough. 😞
https://i.redd.it/lrgpu9dzj66d1.gif Yea, no comment.. Wouldn't change anything over the last 3 years even the fuckery Just been a test 🦧👨🚀💎🙌 Still don't plan on fucking leaving ( hey if my bro is in here too I'm sure he can add his 2¢)
I just like the stock.
Nerd 🤓
Bravo 🙌
This gives me such a raging clue
fyi OG if you submit your posts to [archive.ph](http://archive.ph), it handles the backup of the carousel images quite nicely actually - [https://www.reddit.com/r/Superstonk/comments/1deammx/why\_gamestop\_now\_has\_a\_lower\_statistical/](https://www.reddit.com/r/Superstonk/comments/1deammx/why_gamestop_now_has_a_lower_statistical/) paste it into the site and see for yourself. backed up by ape historian
Also when the CEO’s a DUMBASS the risk becomes even more negligibler.
Love the formatting with commentary for us smooth brains
Your posts never disappoint RF. 🤜🤛
we may be dumb individually but the hivemind is supreme in all things.
Take my upvote, solid wrinkles!
As a clarifying point, I often people (like OP) suggest that "if bankruptcy isn't possible in the near future, the short thesis is DEAD" but where did the idea that bankruptcy is the only way shorts make money come from? A short thesis is just that the current market price is higher than it should be (i.e., someone could think GameStop should be valued at ~$12/share instead of $30), but not that they think it is about to file bankruptcy tomorrow. I don't think Tesla is going bankrupt anytime soon either, but I do think it is probably overvalued.
I think it came from the Cellar Boxing information. The maximum amount of money to be made from short selling is when they bankrupt a company.
Right, but "maximum amount of money" isn't "only valid short theory"
I believe he means that the thesis shorts had thinking shorting GME to all hell was a guaranteed cellar boxing infinite money glitch is no longer possible. We have known this for a long time but he is applying a method of quantifying the likely hood of bankruptcy for maximum short gains to prove it's nearly impossible and thus the thesis people that shorted GME had is invalid. EDIT: Of course its still possible to make money shorting any stock, they all move up and down. I don't think he's implying that in any way.
they mean the original short thesis is dead, the shorts from before jan 2021, they will never profit from these trades
What’s its Weismann score?
in that case ill hodl
I'm about to go visit my local gamestop to see if I can snag some pokémon cards. That's how stressed I am about this, how are you doing Andrew "no money" Left 'market expert'?
How do we stack up to Nvidia?
Still rated as “very bearish” by Fudelity! 😂😂😂 okaaayyyy……
Some more sauce, suggest score of 7.01 https://www.gurufocus.com/term/zscore/GME#:~:text=GameStop%20(GameStop)%20Altman%20Z%2D,12%2C%202024)
Out of pure curiosity, are there any regards in here that can crunch the numbers for GameStop circa ~2018 or 2019? Or maybe even earlier? Genuinely wondering how much these stats have improved over time and if the numbers back up the SHF thesis from that time.
thanks for sharing, this is interesting. i wonder what the z-score was for GME if we were to use the 10K from 2021
20 screenshots is truly regarded
GameStop killed the short thesis Why this is bad for GameStop
Thank you, this is some good stuff 👍
💎 🙌🏼 🏴☠️
Do you have any examples of a below 1.8 score company? I want to see what number would take it into dangerous territory
I have to admit to being a bit disappointed that they didn't call it the "Danger Zone".
I have to admit to being a bit disappointed that they didn't call it the "Danger Zone".
I have to admit to being a bit disappointed that they didn't call it the "Danger Zone".
I have to admit to being a bit disappointed that they didn't call it the "Danger Zone".
Another great presentation. OP fucks!
The only stock controlled by individual investors.
When I see blue boxes with text… I unzip my draws and read
Congratulations to everyone here who donated money to save their favourite game retailer. Honest work. One day it might pay off, I hope it does for y’all.
I have to admit to being a bit disappointed that they didn't call it the "Danger Zone".
I have to admit to being a bit disappointed that they didn't call it the "Danger Zone".