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GameStop Corp. Message Board

  • ffgridirongirl ffgridirongirl Nov 13, 2007 2:53 PM Flag

    Non-expert, casual gamer thoughts on GME

    First ever post on here, but GME is the first stock I've ever owned. I'm new at stocks, but after reading many posts, I have a few observations.

    abitarecatania thoughts on price and P/E are understandable. I thought when I bought it that wow, it's high, but this is how much I like this not stock.

    Abit's other points are a little off the wall to me.
    1. "Selling used games is unprofitable." Have you ever used this system at GME? You sell your games and get $5-10 for newer games and see them on the shelf a few days later for $35-40. How is that unprofitable? Why do we gamers let ourselves get ripped like that? We've all benefitted from buying a title we were curious about and only having to pay $15 to try it out used instead of $60 new. It's the fastest and easiest way to unload a game you've finished/don't want and make a buck.
    2. "Easier to buy games at Amazon and BBY" Well, Gamestop and have an agreement together. So, GME is part of Amazon. GME also has a thriving online store of its own.
    3. "Went to a store and no one was there" The date of the post said Nov. 7 (a Wednesday) that's a big shopping day for all retalers I'm sure. And you didn't say when (time of day) you went either. That's the kind of research I'd rely on.
    4. "Gamers hate GME" ROFL! I'm a casual gamer and I love the store, the employees, the used game biz. A lot more avid gamers than I love GME. I asked my 20-yr-old nephew in college where ppl his age went to buy games. GME.

    Gamestop is a great store. I don't know if the stock will go up or go down, but here's why I invested even at a high sticker price.
    1. There is a difference in buying at BestBuy or at GME and it's the employees. GME hires gamers as store clerks. They play the games, they know release dates (as best as anyone can), they can give tips and advice on what to buy or not. They'll ask you what you've been playing and liking to better be able to tell customers a general consensus.
    2. The gaming industry is expanding with no slow down or end in sight. The Wii brings a whole other gamer into the fold. Gamers aren't 18 yr old slobs with pimples anymore. I'm 25, female, no pimples. :) I got into gaming b/c my husband enjoyed it and I hated sitting and watching. If you can't beat em, join em. GME is in the best position to benefit from this in the long-run.
    3. As all of you know, GME's financials are incredible. "Retail is a tough business" but GME is kicking butt and expanding U.S. and internationally. 500 stores in 2007!
    4. 3Q-4Q will be very good to earth-shattering depending on consumer feelings, but won't be depressed much in a recession. Everyone knows Halo 3, but doesn't realize popularity of about 2-3 other titles that came out in 3Q. Halo3 is the cake, but there'll be a whole lot of icing (I think). Newer consoles are now coming out with incredible games...Merry Christmas to gamers this year!
    5. GME just started its first national print and TV ad campaign. Let that sink in. It's FIRST. For a store that has been doing so well, to just now start a national branding campaign, excites me for potential. How long have Best Buy, Wal-Mart and others been doing national advertising? Yeah.

    There's no way I'd tell others to buy or sell. It's your money, but I thought I'd say why I bought. Sorry so long.

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    • Amzn and GMe has a joint venture in VG I think.

    • goog has only been trading since 2004. they missed the entire bubble. Do you really know what your talking about or is this a Ron Paul thing where you make up your own figures on the fly.

      stocks go up as long as the story is intact. If GME continues to hit numbers and beats numbers the street will continue to raise targets until they no longer beat them. Then the stock will get hit. Is this qrt the qrt? With Halo3, and GH3 I don't think so. but I don't know and therefore if I am long going into earnings I will protect myself with some puts. It all depends on the price action before earnings. If GME ramps up from here to say $65 before earnigns I would sell and take profits before earnings. If it stays beaten down at these levels I will buy before earnings and hedge with puts. Limited downside and much upside. Your trade is nothing but a flip of a coin and if you are wrong you will lose money. If I'm wrong I may lose some money but not very much. If your right you could make alot that is if the stock doesn't run before earnings and force you to cover before than. That is why most stocks that run before earnings fall back on good earnings. All the shorts were forced to cover and any surprise does not cause much short covering. The longs are all ready invested and thus there are few buyers to keep the price up.

    • Thanks!!!!

    • Ok, last reply to this guy b/c he's tiring.

      The internet bubble popped on lots of companies, but Google is no worse for wear today. Yes, if a recession hits it may affect GME, but I think the company is good enough to come out on top. But then, I'm not in this for the short run.

      A) "Google today has no peers." The definition of a peer is "one of equal status with another." By your own words, "best of breed" you are defining Google as peerless. MSN, Yahoo, etc are merely in the same industry or category

      B)"I believe GME is the video game retailer that will have no peers in the future in its industry." Ha,ha, ha Is Kmart, WalMart, Costco, Sears, Amazon, Ebay, Radio Shack, Circuit City, Best Buy going away?

      First of all, those places aren't going away b/c the do not only sell video games like GME does. Numerous people have made this point before. There are very few retailers in GME's category b/c GME bought them (Babbages, EB, so on). So, in the future, heck maybe even today, GME will be peerless in its category.

      C)"Buying used games and trying to sell them is unprofitable! Again, Buying used games and trying to sell them is unprofitable!"

      How do you explain their record profits, earnings, etc., reported in cold, hard financial sheets then? I've already explained to you how this is profitable. Besides a business doesn't stay in business very long by making an "unprofitable" business practice a major part of its model.

    • ""but they both probably went through significant growth periods where people were screaming "The PE is too high compared to its peers.""

      Yes, it was called the "internet bubble" in 2001. It popped the NASDAQ lost over 50% and has never recovered in 7 years.

      "Google today has no peers."
      Yes, it does, Yahoo? MSN? Bidu etc..... Google is "best in bred"

      "I believe GME is the video game retailer that will have no peers in the future in its industry."

      Ha,ha, ha Is Kmart, WalMart, Costco, Sears, Amazon, Ebay, Radio Shack, Circuit City, Best Buy going away?
      How many places can you buy games and gaming systems? At least 10-20 places are within 20 minutes from my house.
      Also you can buy a PS3 for $319 at KMart with a coupon.

      GME is not stupid, the insiders did sell $1.4 billion in 12 months on to people, who bought the "hype" and are still willing to buy a stock with a P/E = 47

      Buying used games and trying to sell them is unprofitable!
      Again, Buying used games and trying to sell them is unprofitable!

    • Gamestop is a fatten pig that is ripe with an extreme P/E of 47. The momentum has been great up, the fall will be quick, as the momentum stops. The passion of the retail bag holders is awesome!
      When? MY WAG is at earnings

      Worth reading:
      "The Gamestop trade-in business is based on on key tenet; we hardly turn down ANYTHING. For all the rage and screaming we take from people getting one dollar for years-old Madden games, you need to remember one key fact; we are taking in games that are often unlikely to EVER resell.

      Most trade-ins we ever receive are not recent or desirable games. We take games in awful shape, without original cases, and that are years-old and so saturated that they will never, ever sell. Every gamestop is drowning in used Madden NFL 2001-2007's as we speak. Old sports titles have no resale value, and we offer a small amount for them with the understand that we will probably never make that back on its sale. The point here is, simply, that there is no sense in decrying Gamestop's trade-in values for games that you are unlikely to sell anywhere else."

    • Ffgridirongirl,

      Kudos to your first post. But please don't expect any of your good points could get through abitarecatania's head. And don't get misled by the moron's P/E talks. PEG (PE/Growth) is really what the street looks at, which is why high growth stocks have high PEs compared to the rest in their industries. I addressed the PE issue, along with the moron's other concerns, in my post last week.

    • Well, well, another slew of stupid spins after thinking hard through 2:34 AM ... How much sleep have you lost lately? For your information, moron, Google is not going to make any cellphones. Its association with the cellphone industry is as new as a few weeks old!

      It's amazing how you shamelessly ignore data/facts and twist everything in your favor to get around the points. Keeping rambling and ranting about the same nonsense over and over, you are simply a desperate short fearing to lose all your eggs put in the single basket!

      BTW, P/E ratio is 51.67 for GOOG and 92.96 for AMZN, one of a few quasi-competitors to GME. Any comments these high PEs? Expect your nice spins!

    • I wasn't trying to compare Google directly to Gamestop. I realize they aren't the same, but they both probably went through significant growth periods where people were screaming "The PE is too high compared to its peers." Google today has no peers. I believe GME is the video game retailer that will have no peers in the future in its industry.

      Also, GME will not buy back just any old used game. If they buy an older game, it would be for a $1 or something and then sell it for $10-15. They have a buy-back system where they only buy back games that still have a market. This company isn't stupid.

    • yeah but goog is not expected to grow at 109% either. Funny how numbers blows your "theory " out of the water

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