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GameStop Corp. Message Board

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  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    Hahahahaha so instead of comparing GME to actual peers you choose to compare it to a beverage company (consumer staples) and a media company? Both of these "comps" have no brick and mortar sales operations and have historically traded at much higher multiples than GME. In addition and perhaps most importantly these businesses you have cited are NOTHING like that of Gamestop. Just give it a rest man. I expect Gamestop to be a solid stock but the idea that its price to earnings multiples will almost double is a fallacy.

    P.S. It cracks me up that you cite diversification as a driver for Gamestop. The company has ONE stated segment - Video Game Brands. Sure there is variability within that segment but all these products are very closely correlated.

    KOOOOOLLLL AIDDDDDD

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    DPS just like Gamestop suffered through a series of UPS and DOWNS. Where sales figures for 1 quarter were UP follpwed by an ugly drop in the next. But, the diversification plan was a long term growth strategy for the company. The CEO of DPS eventually proved that their strategy would be a success and a series of UP quarters folllwed suit.

    DPS is just 1 example. There are a ton of them in the stock market.

    No one is suggesting COMCAST Cable is a bad investment....Yet, they have to deal with Cord Cutters. Despite the cord cutting, Comcast is expecting a 9% annual sales increase.

    How is that possible??????? It is called diversification iBrowning! The company over the years diversified from just being a Cable company to being a content provider, acquiring movie production business (Jurrasic World).

    So yes, 1 line of business from Gamestop is seeing headwinds.... Hence, diversification away from it is happening. Hence, expected success from this growth strategy is not irrational.

    Sentiment: Strong Buy

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    Past performance is never an indicator of future performance. When DPS (Doctor Pepper Snapple Group) had their IPO, back in June of 2008, it opened with around a 12 P/E. In a fee months later it nose dived to $15 a share. Then it recovered to around $40 to $50 where it badically sat around for 2+ years. The P/E multiple for DPS was for several years significantly low compared to their sector peers.

    Now look at DPS. They have earned finally a solid fair P/E.
    Despite the headwinds of more people quitting drinking soda, with annual sales on the decline, DPS was able to get themselves to a far better multiple.

    Want to know how they did it? They accomplish this by year after year expanding into healthier, non-soda, non-cabonated drink choices. A simple move into Coconut Water wasn't seen as a big deal at the time... But, they kept expanding into one healthy drink choice after another.

    I am not a fan boy for simply recognizing that stocks can earn themselves a fair P/E despite headwinds, through diversification. Precisely what Gamestop is doing.

    Sentiment: Strong Buy

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    I'm not saying Gamestop is the only retailer that has struggled recently. But let's give this more attention since you are adamant that GME is a 17 P/E stock.

    Other retailers that have had growth issues:

    Bed Bath and Beyond trades at a 9 forward P/E
    Kohl's trades at a 10 forward P/E
    Best Buy trades at a 10 forward P/E
    Macy's trades at a 11 forward P/E
    Staples trades at a 12 forward P/E

    Keep in mind that all 5 of these retailers are much more diversified in terms of offerings when compared to Gamestop and Staples is one of the largest online retailers in the world. Yet somehow Gamestop is supposed to trade at a 17? Drink that Kool Aid buddy!

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    Bro I have been pretty vocal in the fact I think the stock goes higher post earnings so I don't understand how I am bashing. The stock has traded at a trailing 12 month price to earnings of about 9 since 2009, so the idea that somehow GME is going to rewarded a 17 P/E despite all of the perceived threats to their business is flimsy at best. The fact that you are unable or unwilling to acknowledge this reality makes you a fan boy as it is clear you are incapable of considering any balanced skepticism.

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    Being rational means recognizing the positives and negatives and weighing them. Ibrowning, you should try that sometime.

    We have a company here that is massively expanding and diversifying away from game stores and Q4 2015 is clear evidence that this plan is working.

    Collectibles contributed greatly to a 3.1% same store sales growth. Tech brands carry healthier profit margins and contributed to revenue gains year over year.

    1 or 2 down quarters does not a bad investment make. Investors think long term....Long term picture is 50% of all profit will soon be from Tech Brands and Collectibles which carry higher profit margins.

    Digital may be cutting into earnings, but it hasn't been as devaststing as the P/E multiple of 6 would have you believe. 16 or 17 times earnings multiple is more than fair for Gamestop given that is simply the average multiple.

    Stop pretending that Gamestop is the only retailer that has struggled recently. We saw 2015 as a down year for all retail companies. Yet, they all seem to have higher multiples.

    Sentiment: Strong Buy

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    Fan boys? This is a company that plans to open 20 new Think Geek Stores in the U.S. plus 30 stores internationally, along with up to 500 new Tech Brands stores.

    All of that on top of VR and an upcoming New Nintendo Gaming Console system.

    And somehow we are irrational fan boys? What about you? You slend more time bashing Gamestop and never bringing up any of the positives and yet you pretend and boast here that you are the only rational one.

    Sentiment: Strong Buy

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    All I am saying is expecting a company whose own management is modeling in for dramatically weaker Q1 numbers and down 3% same store sales for 2016 full year to trade at industry average price to earnings multiples is incredibly flawed and frankly you sound like fan boys instead of rational investors.

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    Forecasting sales figures and how things end up can be quite different. For all we know, sales could be UP 3% once 2016 Q4 numbers are reported. Back half of the year is going to be very strong for Gamestop, depends on how much it can lift the less than stellar 1st half.

    Sentiment: Strong Buy

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    It's funny how clueless Wall Street's speculators are. Video games are too different from movies to repeat Blockbuster for one thing.

    Sentiment: Strong Buy

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    Sales are going up again since 2013. look at the numbers.

  • SWIR, QLGC, and INFN are ones I wanting in I have INFN but not the other two yet=== growth plays and great balance sheets. O AMBA LOVE it under 40 but missed it I needed more money that female Viagra been around for yrs.

  • ICON new CEO is good listen to that CC FREE CASH FLOW , and being in Wal-mart again is NOT a bad thing O NO very sweet.

  • I want CEO,CFO, and the other insiders of GME to buy about 50,000 shares each. I mean they get paid very well over a couple million each come on WHY again or take a pay cut until GME is at all time highs. I'd be OK with that and then buy more myself let the shorts know GME is making MONEY and doing well. I wonder how many drones they sold and this VR should be a big hit replace new consoles. Then maybe new consoles come out again or something. I know it will happen if not new consoles something after VR is played out.

  • Reply to

    EPS OF $3.90

    by chessheadfan Mar 28, 2016 5:19 PM

    how many of those specialty retailer peers have management forecasting 2016 same store sales falling 3%?

  • Reply to

    How digital trade-ins fail economically

    by varchild2010 Mar 29, 2016 12:23 PM

    I also feel that basic human psychology shows us that people would rather just pick up a game at Gamestop rather than wait several days for Amazon to deliver one. On the other hand, even if not going out of your house is more convenient, the time it takes to download a digital game negates that entirely. What we hear right now about digital trade-ins are pure rumors. I feel that digital trade ins will either be extremely complicated or undoable altogether. See, the problem with digital trade-ins is that the games themselves aren't really being used. There's no worn disk or damaged box that gives the business a reason to charge far less for a digital game. And if they have to buy the games back at full price, how will they turn a profit?

    Sentiment: Strong Buy

  • i own wtw and Icon in addition to GME. all very interesting.

  • I want in WTW under 11 OPRAH will turn it into a bg winner she lost 28lbs, How do you make 5 lbs of fat look good put a nipple on it.

  • about nice safe div so SWEET I LOVE the stock market sometimes. Listen to ICON CC got Wal-Mart back all good and new CEO from Blackrock, he is a great manager all about management. JIM taught me well O YES he did VA I sold but any airline is a winner AAL is the best my two cents=== They didn't hedge oil=== BIG MONEY and LUV also a winner Like I said any airline is good. IMAX,SKX,NVDA,AVAV,SYNA,SWKS,CRUS,TSN,CPB,CTB,AEO,FINL,AMBA=== my little MF 300 share of each I have 15 stocks in my MF to much TECH???? maybe

  • Reply to

    How digital trade-ins fail economically

    by varchild2010 Mar 29, 2016 12:23 PM

    I mean Sony could lock everything down to stop Third Party companies from buying up the preowned digital supply and using their own service to sell them at a better price than SONY..... SONY could introduce the ability for 24 hour reservations to try to make it easier for customers to buy a preowned game when one is available.

    You still have lots of risk involved especially in trying to make the system economically competitive to physical...While reservations fix a supply shortage problem somewhat, you end up with potential abuse as customers reserve games they have no ultimate intent in buying.

    Biggest problem with reservations for digital trade-ins will be that the original priced digital game will be seen as a ripoff. Everyone will overload the system with reservations to get in line for a preowned cheaper in price digital game. The long waits will result in customers giving up and buying physical.

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