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GameStop Corp. Message Board

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  • Reply to

    Gamestop's Brand

    by valueorientedactivist Apr 29, 2016 5:28 AM

    *has played

  • In addition to other quantitative aspects of analysis, on the qualitative side, Gamestop has a very strong brand. This is partly evidenced by its 40 million Power Up Rewards members (a majority of sales come from here I believe). Literally every person who has plays video games regularly has heard of Gamestop. I'm not saying Gamestop is the best business out there as they need to work on their reputation a bit, but the markets have severely undervalued Gamestop on the extremely uninformed assumption that digital will take over or possibly because of fears that it's somehow the next Blockbuster (video games aren't movies. Digital sales are around 20% vs a much higher percentage for movies and it's because digital is extremely inferior ro most gamers since the US has #$%$ internet speeds, so going to Gamestop is actually more convenient.) These speculators have probably never even touched a game in their lives. Part of Peter Lynch's approach was buying what you know, and I assure you that most Wall St. analysts don't know video games in the slightest.

    Sentiment: Strong Buy

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    "The market's speculators and unintelligent investors judged Gamestop not by performance, but by the fear of another Blockbuster, and video games aren't movies, books, or music."

    Precisely! This is why I've often referred to GME Shorts as "stopped clocks". They've been right the past 6 months or so, but for the wrong reason. The stock isn't down on performance (their thesis). It's down on sentiment, which for them is a self-fulfilling prophesy. Eventually though that sentiment will change as they have to keep paying out dividends for a stock that's already artificially depressed. Unless something big changes in the digital world (or with competitors), I think we've pretty much seen the bottom on this for the time being at $25-26ish.

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    Microsoft Bricks and Mortar stores sell Xbox games.

    Sentiment: Strong Buy

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    Jaysongx, try and trade your video game with a friend. Try and sell your digital download for money back after you beat it.

    That is after waiting 10 hoirs to download it.

    Inconveiniant? Digital is amazingly inconveiniant.

    Sentiment: Strong Buy

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    Best Buy, Walmart, Target, Meijers, Toys R Us sell video games and are beicks and mortar stores. FYE I believe is around still.

    Sentiment: Strong Buy

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    I think you completely nailed it with that analysis. Another reason digital is extremely unlikely to take over physical is because digital trade-ins just really wouldn't work. The reason Gamestop can buy games at a discount is because disks get worn or boxes get lost, etc. With digital, how would they justify buying back some data that just sits there for less? Who would want to trade-in for less when there's literally no reason that the game should be bought back for less, meaning the people in charge of running this operation wouldn't be able to profit.

    The already high and increased dividends are also a sign of financial strength as well as a shareholder-friendly management. The market's speculators and unintelligent investors judged Gamestop not by performance, but by the fear of another Blockbuster, and video games aren't movies, books, or music. They are used differently and by differemt demographics. Gamestop getting into publishing games, amiibos, and the dependence that developers and publishers have are all good signs. The number of Power-Up Rewards members have increased by a few miillion and digital sales are only at 20%.

    Sentiment: Strong Buy

  • Reply to

    Shorts At High Risk, and Option Traders

    by tytus12121 Apr 27, 2016 8:15 AM

    The number of shorts has shrunk significantly. Professionals understand that when the story significantly changes, you need to change along with it. You have to be flexible and nimble. Many shorts have abandoned their short positions in recent months as a result of seeing Gamestop overcome the Digital Downloading problem.

    Same goes for those that take on long positions in the stock market. Be vigilant. If the story signifjcantly changes, get out and find another investment. Use diversification to limit losses and one of the best ways to diversify is to understand the domino impact. If AT&T is doing well, then likewise Gamestop will be. I don't know if one can invest in HTC, but certaintly if Occculus Rift is doing well (and I do not know if they are) one would invest in Facebook.

    If the new gaming consoles look like they will be a success, invest in AMD that will have the chip. Domino effect!

    Sentiment: Strong Buy

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    No. The reason music CDs died to digital was that music recording industry decided that it was ok to have comoanies like APPLE dictate the price of a song. Where a song is worth 99 cents no more and no less.

    Music deals with individual bands and recording labels. It isn't the same as Video Game developers which could be housibg 1000 employees, 100, or just 2 kids in their Mom's basement programming up a Mobile Cell Phone game.

    There is no Recording Industry with the clout to dynamically change how games are sold and at what price.

    Video Game Developers, the gigantic one, do not want their games selling for 99 cents. They want to sell at the best profit margin they can get for them based on the economic conditions of the gaming populace. $60 for a AAA title has been the going rate. Albeit, unlike Music Digital Downloading, independant game developers can set their own price well below or above $60.

    Since $60 isn't 99 cents... It creates the environment where Physical Thrives as shoppers now desire to have the ability to sell the games they buy for money off of the next title.

    Desgning a video game is far more costly than a music album and their aren't world tour tickets to offset the cost either.

    Sentiment: Strong Buy

  • Song of the Deep is now available for preorder. I thought this game was going to be a 3DS game. Turns out it is for the major console systems. It has a $14.99 price point.

    The game reminds me of Ecco the Dolphin in that you navigate through all kinds of environmental dangers and dangers with underwater enemies. I may in fact pick up a copy. Artwork is very well done.

    Sentiment: Strong Buy

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    With all due respect, I think you are a bit of an outlier in this regard. From something I wrote a bit ago:

    I don't doubt that things may eventually go digital, but I believe that will only happen when they either reduce overall game costs or figure out a lending/trading system (which so far seems like an impossibility). The thing with games is that your average player is about 31 and the average game costs around $59. That's a heck of a lot to pay for something that you can't trade in. This isn't like movies and Blockbuster where you could rent the movie for $3.99 for a night or just buy it for $14.99. Digital made total sense with this because the costs are so much lower and the experience so much shorter (1:30 and you're done with the movie). Here, the demographics are much different (higher percentage of people with less disposable income) and the costs are much, much higher ($14.99 or $19.99 for a new movie vs. $59.99 for a new game). While there's a certain segment that is willing to pay a significant premium for convenience such as paying $60 for a non-tradeable game instead of having to wait to order or go into town for a physical copy they could trade in later, if Walmart has taught us anything, it's that the cheaper option is the more popular option in the grander scheme. Until one of the aforementioned variables change, I don't think physical copies will go anywhere any time soon. Also, don't forget that MSFT already experimented with this route and changed course. Remember when the Xbox One was going to not allow used games and require an internet connection? The outcry was big enough that MSFT actually changed their mind.

  • A 10 million share purchase taking stock certificate would all but destroy shorts at this time. 300M would run GME up to 50 a share plus within two weeks. Shorts, option players would be wiped out quickly.

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    I've been playing games since my old Atari 2600, Collecovision, and NES.

    I basically only digital download things anymore. The last physical game I bought was DIsgaea 5 for my son b/c he collects them. Notice how I said "collect".... b/c everything else my son plays, is digital. He downloads it all......

    This is the future of gaming, and you guys would be foolish to play a stock like this anywhere in a LONG TERM grow capacity.

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    You know, a long time ago, people liked records exclusively. Then other things were invented that were better..... people didn't like them at first, b/c people hate change, but eventually, they accepted them and stopped using records (outside of collectors).

    Were you the guy saying that CDs and DVD's were too forward thinking too?

  • Reply to

    jeez, why so many shorts?

    by thanksforthebuyopportunity Apr 13, 2016 2:57 PM

    There's nothing inconvenient about digital? I just download the game..... I dont even have to go to the store to get it.

    These brick and mortar stores are on their way out..... to be honest... I'm surprised that they have lasted as long as they have, and honestly... only Gamestop has. All of the other ones have died off.

  • Exactly. These analysts and other stupid speculators hear digital and immediately think of Blockbuster. Blockbuster had to compete with Redbox, Netflix, etc. Gamestop is still the largest game retailer by far. Video games aren't movies, but thanks to plenty of idiots who think they are, we can make a huge return on our investment. The increased dividend is great too. It shows shareholder friendly management and strong financial condition.

    Sentiment: Strong Buy

  • Sounds to me as if you've never played a video game in your life. 46 million power up reward pro members, the increased dividend, low P/E. You think gamers like just buying games on consoles with no way to ever sell them? You can't sell back digital games and there's really no way they'll be able to implement that. Have you never heard of amiibos or how incredibly inconvenient digital downloads are? I digitally downloaded once. It was awful. You wait several hours for the game to download and then 20 minutes in, it makes you wait a few more hours for a part to load. And then you're stuck with the game. Gamers have shown that they want to trade games or get cash back. Haven't you heard about all the hacking going on during the holiday seasons? You think parents will put credit card info on a console that's prone to getting hacked? Seriously, before making judgments, actually understand what you're talking about.

    Sentiment: Strong Buy

  • On top of all the discounts, reward certificates, and other benefits, Powerup Rewards program includes an annual subscription to Game Informer. You honestly think Video Gamers are going to pass that up? 46 million would tell you NO WAY DUDE.

    Sentiment: Strong Buy

  • P.S. 2016/2017 IS the next console cycle. We have virtual reality helmets galore and 3 new gaming consoles set to release in 2016 or 2017. Not a whole lot of time there...for you to end up eating your words.

    Sentiment: Strong Buy

  • People said that when Playstation 3 was brand new. It is hilarious to see you naysayers constantly moving the goal posts. Not that any of you ever put your money where your mouth is.

    Sentiment: Strong Buy

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