Have you ever considered writing for Motley Fools? I think that you would get a wider audience.. I am beginning to feel that you are being ignored and that makes me feel bad for you..
Funny how the stock price bumps around while the fundamentals continue to melt:
- Console hardware sales continue to decline. People all excited about Sony and MS consoles which are up a little (in unit volume) while they forget that Nintendo is falling apart. Nintendo consoles down 43% from on year ago.
- Handhelds (which used to matter) are down 41% for the current GME quarter.
- X1 now facing discounts as retailers try to move them. PS4 now well stocked everywhere.
- So - thats a lot less hungry slots for physical media than there used to be.
- New consoles are far better at downloads so we will see a much lower physical media attach rate then prior gen.
And, physical media is following the trend.
- Physical game units down 14.7% and down 21% for the GME quarter.
- Titanfall ain't saving anyone. Less than 800K total units in US in first two weeks. Caused a blip in hardware sales.
- Preordered games in the US are well off from a year ago in both volume and outstanding preorders.
- All these trends are echoed in GME's unit sales (new and used) in recent quarters.
The fact of the matter is if they dont sell more slots (consoles and handhelds), they wont sell more games. It ain't speculation, its a fact, this ice cube continues to melt, regardless of the stock price.
Hmmm….looking at stocks set to gain in new up cycle of XBOX1 and PS4, after long correction…look at PAMT. Changing name to Turtle Beach soon after merger to reflect business focus and 5 year projection of $1 Billion. Q1 sales of new headsets for new boxes to be perorated in MAy. I expect a steady march upwards into earnings. DYOD.
Sentiment: Strong Buy
I seriously dont understand the movements in the stock....I bought some 40puts (chump change) before the announcements. thinking it was a 50 50 bet... good report goes up bad report goes down. Then the stock goes up, with really tepid news, and now today is down in good news? I mean i understand small increments or drops but this stock is 2% -5% up and down every day. Seriously, this is the last time i bother with a stock that trades under 50 million shares a day.
This article talks about survival and neglects to talk about increased competition in used games and with online downloading. What about growth? Unlikely.
what happened! #$%$ boa flip flopping all over the place grr
Having downgraded earlier in the week at a much lower stock price then upgraded this morning after an 18% run, BOA \'s upgrade reeks of being a sell the upgrade contrarian indicator and judging from the fleeting pre-market rise, let the selling begin.
after all the motley fools were failing all over themselves yesterday reiterating a sell. These people who are a contrarian indicator...all in a lather and going to get crushed as we head past 50...
yes...big squeeze happens at 45s...to 50s...smart money coming in daily..the quiet money..
45$ premarket nothing holding us back going to be a good Friday :)
Forbes: So it’s not necessarily a short-term opportunity, but you think GameStop can survive even if you think the game shops are headed out?
Paul: I think that it will survive. More important, two new video game consoles were released this past holiday season: a new Xbox and a new PlayStation. New releases have historically been followed by a huge wave of game sales. We expect a substantial ramp-up in profits and cash flow over the next several years.
go to forbes(dotcom) /sites/wallaceforbes/2014/04/02/the-best-places-to-put-your-money-today/2/
Paul: In the same vein, I’d also like to highlight GameStop Corp. (NYSE: GME), a retailer of video games and a much smaller company than HP. The big fear here is that video games are the next domino to fall in the digitization of media. Record stores are gone, and bookstores are headed on the same path. It’s only a matter of time before we lose all the video game stores. Or so the story goes. But we think these fears are overblown, for a couple of reasons. First, GameStop is an extremely conservatively run business. It has no debt. The average lease length on its stores is three years or less. Its stores aren’t filled with expensive fixtures; it’s a lean operation. Management runs the business for cash flow, and has been quite good about returning that cash to shareholders in the form of dividends and share repurchases.
Second, we also think the business has more staying power than is generally perceived. GameStop’s core customers are young men between the ages of 15 and 24. They need to be able to trade in their used games in order to buy the new games, and GameStop has tremendous depth and experience in managing inventory and refurbishment of used games. That has created an extremely loyal customer base, which has proved a strong barrier to the digital delivery of games.
In fact, in this new game cycle — where Microsoft and Sony have brought new consoles to market — we saw a bit of a prisoner’s dilemma take place. Microsoft released its new Xbox first, declaring that it wouldn’t allow used games to be played on the new console. Sony promptly responded with the opposite message, because that’s what the customer wants. Ultimately, Microsoft had to backtrack. We viewed this about-face as stark evidence that the ecosystem around this market will be preserved much longer than many people now fear.
Ghosts is the industry's biggest selling franchise. This is not a good for GME. ATVI also mentioned that Diablo sold 2.7 millio copies today. Most of them were apparently digital. Not a good sign that biggest franchise being discounted sharply. ATVI may be in the process of offering discounted copies of the game (COD) via download.
Its marching higher each day. As the shorts continue to cover it should keep climbing. $45 by tomorrow and $50 by end of April. Congrats to fellow longs for staying strong.
Sentiment: Strong Buy