hi nice to see not too much madness on this board. I bought today and hope im not too late to the party.
I really like this company and i believe the stores offer to a different customer profile. They sell to hardcore gamers, and the kids really like the culture of the stores. BBY excellent company but I cant see them eating GME's lunch. this is a lucrative market. If you go long or short just visist the store and compare it to the
gaming department at best buy. (packed, lot of the hot gaming demographic, and really knowledgeable sales staff). Who runs things the parents or the kids? if u say the kids i say gamestop is the place to be.
So basically what you are saying is, you bought a Gameboy Advance game. You weren't sure if it would work in your GBA SP, which it will. The sales person at GameStop told you it would, which is the truth, so you decide to never shop there again?
The reason why he said that is that every game is thouroughly inspected when traded in. There should be no need for a return. Atleast thats my view on the situation. But enjoy the experience at BBY.
I'm not overly concerned, but I had some options that had a nice gain... and the swing caught me full in the face.
Basically it erased my profit, but now that we're over $32, I'm grinning again.
It was stupid of me to go for lunch without a stop loss at $32.30
My appologies. Well, everyone has to eat. And you shouldn't be worried about the drop in PPS. This stock is a core holding of mine and should be in everybodies portfolio in my opinion.
I wasn't sure if you understood what I was trying to get at.
I don't want to pop on here as a new presence and be misunderstood.
This little dip today sucked... I went for lunch at a bad time :-)
So then what's the worry about increased competition? direct loss of sales? Not smaller margins right?
someone was babbling about cheaper games at BestBuy. My comment was just to show that increased margins aren't made by lowering your prices.
BS, people have been saying that crap for years. Video games are priced similar everywhere. Do you think BBY just starting selling games? Target? WalMart? They have all been there for years and GME will continue to do well despite them. The pie is just too big.
Does that sound like increased competition to you? Or an expanding market?
If BBY was in huge competition with GME/ELBO then margins on Video Games would be DOWN.
Now I just know the average margins increased:
"In the first quarter, Best Buy's gross margin increased to 25.5%, up from 23.9% in the prior year."
Taken from http://www.thestreet.com/markets/natworden/10227966_2.html