GameStop Corp.

GameStop Corp. (NYSE: GME) provides games, entertainment items, and technology via its e-commerce platform and shops. Europe, Canada, Australia, and the United States are the four geographical regions in which the firm operates.

Key Highlights

• The company reported a 25.33% rise in net sales to USD 2.46 billion during H1FY22 (ended July 31, 2021) compared to USD 1.96 billion during H1FY21 (ended August 01, 2020) due to an increase in demand for the new video game consoles launched by Sony and Microsoft.
• As a result, its net losses decreased to USD 128.4 million in H1FY22 from USD 277.0 million reported in H1FY21.
• In Q2FY22, GME's gross margin was 27.1%, much lower than the industry median of 40.6%.
• During H1FY22, it sold a total of 8,500,000 shares of common stock under its at-the-market (ATM) offerings. The gross proceeds from the offerings were USD 1.68 billion, and total sales commissions paid were USD 10.1 million, which reflect the company's insufficient cash and capital predicaments.
• On September 20, 2021, GME announced plans to hire up to 500 people for its newly leased customer service facility in Pembroke Pines, Florida.
• The stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• The stock is highly volatile, with a 52-week range of USD 9.17 to USD 483.00.
• GHM's share price has surged 851.99% and 1,738.89% in the past nine and twelve months, respectively.

Technical Price Chart (as of October 07, 2021). Analysis by Kalkine

Conclusion: Considering the stocks' volatility, a surge in top and bottom-line, liquidity and capital issues, and the technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 172.12, up 0.61% as of October 07, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Remark Holdings, Inc.

Remark Holdings, Inc. (NASDAQ: MARK) is a technology-focused company that develops artificial intelligence (AI) based products, computing devices, and software-as-a-service products across various applications within the financial, retail, entertainment, education, and workplace and public safety industries.

Key Highlights

• The company reported a YoY surge of 74.68% in revenue to USD 4.02 million in Q2FY21 (ended June 30, 2021) compared to USD 2.30 million in Q2FY20.
• Net loss for Q2FY21 reduced to USD 1.56 million from USD 9.82 million in Q2FY20.
• On September 28, 2021, MARK signed an agreement with an institutional investor for a private placement of 4.24 million common shares plus warrants to purchase 4.24 million common shares for total gross proceeds of ~USD 5.0 million.
• On September 23, 2021, it signed a contract to provide AI-driven workplace safety solutions for 100 industrial real estate building sites for USD 5.0 million. It anticipates completing 30 locations by the end of FY21, with the remainder by Q1FY22 end.
• In Q2FY21, its operating margin was -61.5%, whereas the peer median stood at 4.6%.
• The company has a negative net worth of USD 15.21 million as of June 30, 2021.
• The stock is currently trading below its crucial short-term (50-day) as well as long-term (200-day) SMA support levels, a bearish indicator.
• The stock price is currently leaning towards the lower end of the 52-week range of USD 0.85 to USD 4.72.
• MARK's share price has decreased 44.47% and 61.04% in the past three and six months.

Technical Price Chart (as of October 07, 2021). Analysis by Kalkine

Conclusion: Considering the consistent decline in the stock price, continued net losses, lackluster fundamentals, and unfavorable technical indications, we recommend an "Avoid" rating on the stock at the closing price of USD 0.89, up 1.55% as of October 07, 2021.

*The reference data in this report has been partly sourced from REFINITIV.