LogFAQs > #949946431

Lopen posted...

You look at pre-covid earning numbers for Gamestop vs Nordstrom and their stock price trends before Covid and you've got two completely different stories even if Nordstrom is running at a (very small) loss right now.

I just think it's disingenuous or ignorant to compare the two. People were humoring Gamestop going bankrupt before Covid. Nordstrom was not at any sort of similar risk. It had a bit of a down year in 2019 but it's still not even reached its pre-covid number yet. GME is meanwhile over 4x their 5 year high currently.

That's precisely why it is an apt comparison now. I see that Nordstrom had about double sales and double profit pre-COVID. But the big gap in stock price was because Gamestop was perceived as a bankruptcy risk before COVID. But I don't think they are a bankruptcy risk now. A share issuance of stock would take care of their debt problem. Yes, it might kill the short squeeze, but it would also take bankruptcy off the table.

Truth be told, I think bankruptcy may be pretty much off the table even without a share issuance. I think there's something really off about GME's share price pre-COVID. Feels like short sellers believed too much in their story, that it was the next Blockbuster and got ahead of where the business fundamentals actually were.

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