The Game Group Shares (GMG.LSE)

raider

Struggling retailer Game Group has confirmed it will go into administration, according to Sky sources, after failing to find a buyer.

More than 6,000 jobs are on the line at the video game retail chain's UK stores.

Administrator PwC is expected to announce the closure of loss-making stores from Game's portfolio of 600 in Britain, before selling off the business.

http://news.sky.com/home/business/article/16196320

sabretoothtigger

Did the OP make any profit from this in the end ?
Not sure if I would have sold in time had I bought hence I try to only buy things increasing in demand like oil seems a very sure bet even while drilling is never for sure

Took some Caza today and CEY as I wonder if Egypt election result could be said to relate to how Iraq went, chaos but apparently positively progressing ?
Game however or HMV for that matter relate to big risk set on declining prospects due to more stream lined business models, lower margin, online etc

deutsch

sabretoothtigger wrote: »

Did the OP make any profit from this in the end ?

i sold half my shares before losing the rest, but i did still profit!
157% return rather than 300%+

melbury

Well this is what Reaper advised me when I asked for opinions on buying Game Group shares last August:

"Game Group has a high dividend but that's for a reason. If people continue to switch to buying games from the Internet instead of the High Street you can expect that to drop rapidly along with the share price."

How prophetic was that?

Sadly I ignored this good advice:o

bigfreddiel

not surprised game has gone bust - i bought a pre-owned xbox from them last year - got home and it was doa - psu dead - called game - told to return it to shop - for me thats a 120 mile round journey - got the okay to post it to their hq - told it would take 4 weeks to process a refund - okay, if it takes 4 weeks thats what it takes - 4 weeks later no refund - called hq - told it had just arrived and it would take 4 weeks to process a refund - now i'm getting p*ssed off - i know it was signed in at their hq the day after it was posted - special delivery check on royal mail site.

Argued with customer support for a few minutes - totally pointless so i accepted it would take 4 weeks for the refund.

next step - wrote to chief exec, cheif accountantm head of customer support - all copied so they know who's received my letter - asked one simple question after detailing the chain of events - the question: would you be happy with this sort of service?

got my money back plus postage - thats okay its what i expected - got a letter of apology - and got a £50 voucher.

if they treat their suppliers like their customers i'm not surprised they went to the wall - not soon enough of you ask me.

fj

wazza24

not really the right place for this post but does anyone know, how i would stand on the insurance cover for an Xbox, technically its through a 3rd party but not sure if this is affected, i heard today that they have for the foreseeable future stopped all gift cards... :cool:

custardy

bigfreddiel wrote: »

not surprised game has gone bust - i bought a pre-owned xbox from them last year - got home and it was doa - psu dead - called game - told to return it to shop - for me thats a 120 mile round journey - got the okay to post it to their hq - told it would take 4 weeks to process a refund - okay, if it takes 4 weeks thats what it takes - 4 weeks later no refund - called hq - told it had just arrived and it would take 4 weeks to process a refund - now i'm getting p*ssed off - i know it was signed in at their hq the day after it was posted - special delivery check on royal mail site.

Argued with customer support for a few minutes - totally pointless so i accepted it would take 4 weeks for the refund.

next step - wrote to chief exec, cheif accountantm head of customer support - all copied so they know who's received my letter - asked one simple question after detailing the chain of events - the question: would you be happy with this sort of service?

got my money back plus postage - thats okay its what i expected - got a letter of apology - and got a £50 voucher.

if they treat their suppliers like their customers i'm not surprised they went to the wall - not soon enough of you ask me.

fj

how many shops do you buy in,where you dont have to return the item to a store?

sabretoothtigger

melbury wrote: »

How prophetic was that?

Sadly I ignored this good advice:o

It was not that unforeseeable. In fact that was the most likely scenario, they can always negotiate the white waters but the flow of money is indisputable.
I will post a flashing light just to stress the point if I see similar again


3rd party insurance will be valid as they retailed but not underwrote it, I cant see a problem

IronWolf

Just goes to show the importance of competitive advantage when investing. Or on the flip side, how investing in a company with a competitive disadvantage is a quick way to losses