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....
to unload the rest of their holdings. It is that simple.
They know the business is under pressure, so they are buying more time.
Shorting a stock for a week and talking about the possibility of a long-term fundamental decline in a product to affect that week long short position. Look in the mirror dude.
NO. It's not a question if physical will be around or not in 2014. That's not a well thought out post. Nobody questions if Game Stop being around. in 2014. The question is how will they perform next year and the year after. They are at a severe disadvantage. I could go on but I have better things to do than argue with a blinded long.
Sentiment: Strong Sell
I'm a FOOL and proud of it. What I posted was true and based on my own observations. My top picks have outperformed the market for almost a decade, nothing to do with advise from others. I'm just passing the word on as I went short today at $38.51. Good luck and enjoy your dividend. My prediction is the yield will grow as the price declines. Eventually the dividend will be cut or eliminated. My advise is don't invest in any company when the industry changes and the company becomes less relevant or possibly totally irrelevant.
Sentiment: Strong Sell
Publishers\game makers can choose either avenue these days. Digital or Physical. It's there, just choose it. Why are there still physical games and still consoles that play physical games in 2014? That's the only question you need to answer. Once you do that you can properly evaluate your position, short or long. Stop dancing around and start answering that question, for your own sake.
Razor - Thanks for the quality response to my recent rant. Comments back on yours...
- GTAV seems like the exception that proves the rule. Almost every other game franchise is reporting lower numbers each generation. (Madden, COD, Battlefield....) Also, it seems to me that it will be hard to support 6,000 brick and mortar stores as we get down to less than 20 AAA blockbuster titles per year.
- GME sells an insignificant amount of DLC and digital. They sell DL cards at very low margin. They have no chance in eCommerce because Sony, MSFT, eShop, and Stream already dominate those channels. I hope they waste alot of money on streaming because as noted elsewhere, its very hard to do.
- Downloading is better for the Publishers and soon enough, the pricing will reflect that.
- Seems to me that consoles are dying. Volumes this year already lower than last over the last several weeks. WiiU is absolutely dying and Xbone now having real questions. I have never seen anyone buy/sell/trade anything at GME other than a disk. Isnt that almost all of their used business?
- You are right. Used was up for the quarter and i need to be more careful fact checking. But, did you notice that the leading console PS4 is getting more than 50% take-rate on its games services. Old games offerred DL for free or really cheap. I think new consoles will do a lot to take share and lower prices of used games. New games were down 20% though.....