The GameStop has announced the departure of CFO Jim Bell. To allay shareholder concerns, it was assured that the departure was not the result of disagreement.
Therefore, this is a positive, forward-looking change in a key leadership role as described in the press release (emphasis added):
“The company has launched a search for a CFO with the skills and qualifications to accelerate GameStop transformation. A leading executive search firm has been retained to support the process. Internal and external candidates will be assessed. “
The timing is excellent
Dust is still settling in the trading whirlwind, and this key management decision is getting the stock back where it counts: GameStop fundamentals and the rebuilding growth strategy. As described in “GameStop’s New Outlook,” the next earnings conference call (likely in late March) is expected to outline the company’s new goals and plans.
“The key ingredient is the increased focus on a growth strategy, driven by new committed board members and fostered by new leadership additions capable of enhancing a known brand.
This will pave the way for the stocks that investors can expect. In addition, it will provide the growth indicators that investors can focus on. (It’s too early to expect sales and profit growth. It takes time, resources and action first to produce the major change required for GameStop to fully and profitably benefit from the next one. uptrend.)
So, is it time to buy the stock?
Even though the enthusiasm builds on what management reveals when calling the results, it is still early for action. First, “suspended” and “reentrant” short-term traders must be eliminated. This will allow the stock to step away from tough times and become a solid foundation for attracting long-term investors.
The bottom line
GameStop has just released a first good news report to whet investor appetites. Then comes the first class.