A good management should think about invest the company future especially there will be no disc to sell soon.
This stock will head below $20 sooner than later..........
Titanfall is online-only and thus cannot be compared directly to typical blockbuster 1st person shooters. However, a side effect will be increased sales of XBOX Live Gold memberships.
The good news here is that there are hardly any games for the new systems, as birch notes.
You may have also seen the recent article about gamers' buying preferences being heavily skewed toward physical media. Can't find the link right now though.
Maybe you read it wrong retail is up 9% yoy. And this is with very few releases. Wait until March and as more next gen games are released. NPD retail will only keep going up.
So NPD report came out and was largely as expected.
- Hardware dollar sales up but software sales (-9%) continue to really suffer. Hardware is almost no margin so cant be a good trend for our GME friends.
- Masked by the dollar sales number is the fact that console UNITS continue to really decline. There are a lot less people buying consoles. (Double or 2.5x the price of last gen so sales increase of 42% is a lot less consoles.)
- Software revenues of new launches DOWN 15%. Ouch.
- Titanfall will surely do fine but hard to imagine its going to save the industry. No midnight launches in my town. Absolutely no hoopla inthe stores. Pre-orders were less than 1/3 of COD Ghosts. Plus, MSFT screwed up the launch so probably not as much buzz out there as should be.
- Other games either lower priced or kinda flopping (Theif came in with $22M in US sales despite GME hyping in their press release.)
- I kind of chuckle at NPD analyst. Paraphrasing...New gen units "held up" with only a 1% decline but since popular games are cheaper, dollar sales of new games down 15%. This is described as good news!
Digital increasing, console units in sharp decline....such a happy bear.
Physical disks are like the human appendix. Both are evolutionary remnants. Physical disks will disappear and the Motley argument is backwards looking. People would have thought the same of movie DVD's and books.
Unbelievable that it took Motley to answer it in their article. "Gamer Survey Shows Why GameStop Might Not Be Doomed After All". Any Gamestop position holder short or long should understand why this is so, I think. Why physical still exists in 2014.
You are shorting earnings and most likely covering yourself with options. That's called straddling and whatever you're doing it's a short term position. Not rocket science my friend.
Its funny yahoo finance says you just opened the account on March 5th, so how many other ID's you have shortie? Enjoy lossing your butt. My moto is stay strong and Long and enjoy GME's divend growth.
Sentiment: Strong Buy
B of A out with a note this morning listing potential acquisition targets as 2014 should see increased M&A activity. On the list in consumer sector: GME.
GME take out would be easy to debt finance given how accommodative credit markets (ultra low rates and few restrictive covenants) are and its stable cash generation history.
You love to put words into my mouth. I never said 1 week and I never said 2 years. It is true that I am responsible for dividends and interest, but I factored that in. Foolish? That question will be answered by management when they provide guidance.
Sentiment: Strong Sell
From the last 10Q
On November 19, 2013, our Board of Directors authorized us to use $500 million to repurchase shares of our Class A Common Stock, replacing the remaining $209.9 million authorization. As of December 4, 2013, we have purchased an additional 0.4 million shares of our Class A Common Stock for an average price per share of $50.75 since November 2, 2013."
Nearly $25M in repurchases in the most recent quarter, now the stock is well below that. A couple of years ago, and before insiders announced they were going to sell a ton of stock, GME would not repurchase shares above $24. Insiders sold en force under the cover of the repurchase, now they increase the dividend. Coincidence? No, they just need more time to sell.
Is it also a coincidence they are now increasing the dividend to stem the pressure on shares due to the fact that the business model is under pressure?
Companies are notorious for misallocating shareholder's money to allow insiders to profit. I am sure that in a year or two, the billions spent on repurchasing shares will look foolish as the share price heads into the $20s.
Not a chance, IMO, insiders started the repurchase program and increased dividends to allow them more time to get out.
Wouldn't it be advantageous to keep the share up also for the stock buyback program to buy less shares? Gee I think you are onto something here....