Morning Notes (GME, Game Group, AAPL)
Game Group (GME of UK): reports 5 weeks sales ending January 9, 2010 of -12.1% y/y and 49 weeks -11.1% y/y. Company notes significant improvement since Christmas
Gamestop (GME): new 2010 capital allocation strategy. $300M share buyback when completed 10% EPS accretion. Believes cash flow will be at or above existing levels. $600M cash flow from ops, $200M cap ex for 400 new stores, $100M for acquisition activity, and $300M for share buyback. Expects to end FY09 and FY10 with $700M cash at hand. Net-net: forecasting $400M of FCF
People’s Bank of China: raising reserve requirements for nation’s lenders by 50bps on January 18th
Japan Airlines: down 45% (daily limit) on bankruptcy speculation
Apple – online reports that Apple snapped up all the supply for 10.1 inch LCD and OLED screens for its upcoming tablet
Spiderman movie delayed – Sony Pictures and Marvel Studio (Disney) announced they will delay the 4th movie by 1 year to 2012 with new director and new cast
Netease (NTES) – report that GAPP asks company to resume free of charge beta testing or it will face suspension and a huge fine Link