GAME Digital (LON:GMD) is now trading at less than its cash and although cash increases after xmas the SP seems to have fallen too low. Famous last words of course with the CFO resigning but he is staying on for 3 months. Paul Scott's positive points here are still valid and the annual report is clear they are repositioning themselves for esports (already huge and growing fast) & social gaming
https://www.stockopedia.com/content/small-cap-value-report-thu-11-jan-2018-tsco-mks-john-lewis-boo-gmd-card-ao-gmd-lrm-296228/
However, I'd have thought a statement from the company would have been forthcomming given the falls and I see no director purchases but I don't know if a closed period. Should they be clarifying the reasons the CFO left? Too cheap or too risky?
I dropped into their London: Wardour Street location on Thursday to witness their regional qualifiers for League of Legends. I was quite impressed with the setup, which is located in the basement. One of the employees greeted me and on learning that I didn't know much about it explained how it all worked. I asked whether they were streaming the event and learned that they were not. Later, I overheard the guy behind the counter say that there was no availability that evening (I arrived around 5pm).
I am still unsure whether this is a profitable business - LAN centers are incredibly capital intensive. And I was concerned that the event wasn't being streamed given GAME's objective to become an esports company. That being said, I was told that their Insomnia tournaments were live-streamed so perhaps it is in the investment pipeline. However, if I was a local gamer looking to get into the regional esports league I would be keen on watching the competition so would assume that must be pretty high up on the to-do list at HQ.
