Nice post Frank as usual. Just started scratching the surface here in terms of dd. vg sales overall have a lot of competition on where to get the consumer dollar. the nice thing is brick and morter stores still outsell online videogame sales by a margin of 60-40 For every gme to buy games at theres toys R Us,Games Universe,GameFly.com, Half.com, GoGamer.com, KBtoys.com, BestBuy.com, CompUSA.com, Circuit City, WMT, Kmart.com, spiegal, dvd empire, eToys, Buy.com, Crosstoy.com, software oasis, wiz, coconuts, musicland, elbo, and others.
Basically theres a
the upcomg games lineup, the sector etc is still growing and with over 1000 games a yr the software sellers seem like a great place, and the valuation here. everytime im in one, they got a nice crowd, and older players have the needed disposable inc, which helps the used game sellers.
anyways, just literally started looking tonight so long ways to go. thnks for the post, its on the radar. keep up the info
Alright, I apologize for going off. I think it's reasonable to have wanted more out of a November investment but if you're long term, which you ostensibly are, you'll be fine. I think though that you'd be pissed if you had invested in ELBO in November too. Also, just because ELBO has outperformed GME at certain moments in the recent past doesn't mean it will do so in the future. For example, GME outperformed ELBO by 33% today!
Not sure what your question is - "reply the way you did". I thought we were having a discussion about why ELBO seems to be outperforming GME when the fundamental strength of each company is similar. I wasn't aware that discussions regarding positives and negatives of various companies require a proclamation of being a "Short" or a "Long". With respect to the $12.50 valuation I read a recent post that said GME will be at $12.00 to $12.50 by mid-week. I mistakenly attributed that prediction to you and offered a congatulations on the call. Obviously it wasn't you. That's my story and I'm sorry if I've disappointed your lust to discover evil manipulation in any post that doesn't blindly support GME. Quite franly, I've expected more from GME - that's why I held on to it.
Wow! And here I thought you had credibility. Feel free to review the message board for the last six months - you'll see that I post regularly and have been a strong supporter of GME. I've actively critiziced bashers that are unable to support their position - not that I owe you an explanation.
I can't remember the last time I've seen an accurate 12-month target. That aside, I've been trading this one for a few months now with good success. I'm looking for another point in the next week or so, then I'm out to watch it some more.
Thanks for the research and congrats on hitting your $12.50 valuation target. There is one difference between ELBO & GME that needs to be mentioned - GME @ 66.4% of 12 month target - ELBO @ 86.9% of 12 month target!
With regard to the remaining year message, it likely could have been stated better by GME, but GME and ELBO's stock performance relates more to whether institutions are buying or selling on any given day.
Honestly, I don't know much about ELBO. Where does it come from? I know GME comes from the folks at Barnes & Noble who have done a pretty damn good job selling books etc. I also know that there's always a tendency to get "grass in greener" syndrome in investing (as in life). So after reading your post, I went and pulled company information provided by S&P which showed me the following:
Company GAMESTOP ELECTRONICS BOUTIQUE
Total Revenue $1.4B $1.3B
Return on Equity 26.1% 16.4%
Profit Margin 3.9% 2.8%
Sales/Employee $501,030 $397,810
5-year Growth 19% 19%
Trailing P/E 13.4x 12.2x
Forward P/E 11.8x 11.6x
Price to Sales 0.2x 0.4x
PEG Ratio 0.7 0.6
As for charting GME & ELBO, the two are always close, here's the two year:
My conclusion is that if someone wanted ELBO especially if they liked the international exposure, I would have a hard time trying to come up with reasons not to buy it. I choose GME because of its U.S.A. presence and because I think the people at B&N know what they are doing. Either way, both stocks are way too undervalued.