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GAME price bounces as investors dump stock

UPDATE: "We fight on," says CEO; Shares see a 'dead cat bounce' as trading volumes pass 337 million

Shares in The Game Group have crashed and bounced back up as investors dump stock at a rapid rate today.

At the time of writing, more than 244 million shares have been traded today - that's compared to an average of 10.8 million over the previous three month period - indicating panic amongst investors.

While some investors are dumping stock in the doomed retail business, other have picked up shares at a 0.5p low, causing a 'dead cat bounce' - a brief recovery following a fall from a great height.

The company issued a statement today saying that it would be "reviewing the position of all of its assets in the UK and international territories," with expectations that some or all of the company is up for sale.

Last week directors in the company tried to show confidence in the falling stock, with seven members of the executive team buying 174,995 shares at 5.35p. That original spend of 936,223 is currently worth 272,992.

UPDATE 1:

According to Mark Photiades of Singer Capital Markets, no potential buyer is likely to come forward before the company goes into administration, suggesting a pre-pack deal would be preferable for anyone looking to buy The Game Group.

We suspect that any potential suitor would prefer to wait for a formal administration process," he told the BBC.

"Through a pre-pack, the suitor would have much greater flexibility around store liabilities."

UPDATE 2: Ian Shepherd, CEO of GAME, has noted the continuing struggle of the group and said he's "humbled" by the support of customers.

"Very tough time for all our teams around the world," he said on Twitter. "We fight on, though. Plenty still to do, customer support humbling as ever."

The Game Group (GME) shares have closed today at 1.19p, down from an opening of 1.75p. Over 337 million shares have been traded with low of 0.50p and a high of 2p.

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Latest comments (10)

Sam Maxted Journalist / Community / Support 4 years ago
As I write this (post-bounce), GAME's shares are only worth around 2.5% of what they were this time last year.
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Andrzej Wroblewski Localization Generalist, Albion Localisations4 years ago
Whenever "investors" touch anything that depends on creativity and authors, there's always a catastrophe of sort. The sad thing is, that (economically speaking) it never is the wallet-holder or the marketing parasite who pays the price of the disaster -- it's always the content creator / author.

When will people realize that arts and culture should be protected from the market with it's "laws of economy"?
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Jay Filmer Web Developer, Steel Media4 years ago
Last week directors in the company tried to show confidence in the falling stock, with seven members of the executive team buying 174,995 shares at �5.35p
Actually, they entered an agreement a while ago to spend 20% (I think) of their salaries on shares each month for a period of one year. So the purchase you mention was something they had to do, rather than something they chose to.
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Show all comments (10)
John Bye Lead Designer, Future Games of London4 years ago
5.35 a share, or 5.35p? I'm assuming the latter, in which case the purchase of 174,995 shares would make for a rather less impressive "show of confidence"...
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Morville O'Driscoll Blogger & Critic 4 years ago
Yeah, given the share price has never been close to 5.35, the article needs to correct that.
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Ged McMillan Retail Manager 4 years ago
And would also mean that the spend was less than 9000, not 900,000+.
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Craig Page El Presidente, Awesome Enterprises4 years ago
Please can we have more Game related news? You guys need to start writing on weekends too so I can read about Game every single day, and not just on weekdays.
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Fran Mulhern , Recruit3D4 years ago
lol @ Craig.
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Neil Young Programmer, Rebellion Developments4 years ago
The share price has been corrected, the totals haven't: 174,995 x 0.0535 isn't 936,223!
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Feargus Carroll Producer 4 years ago
@ Andrzej

I'm not aware of any creativity authoring that occurred at GAME. It's a bricks and mortar retail business that based it's business model on price gouging second hand games.

Edited 2 times. Last edit by Feargus Carroll on 13th March 2012 5:37pm

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