What is everyone doing with their shares? Buying more? Selling some? Selling all? Everyone is gonna call me stupid but I just bought more at 18.52 to lower my per share price to 19.41
Hold it. I am not long or short anymore; although I was long when it was 22.15. There is noting wrong with the gaming industries or fundamentals ( although peoples are pondering unnecessary over those). The main problem is some/ any institution is/ are PAIR TRADING this GME with BBY from Jan 08 ( plot the graphs in Google Finance and will see parallel PPS); shorting and in buying both for minimising their losses. These caused this downgrade. However, if you look at Toyota(TM) now, after so many recalls, but still rallying after the intial plunge. Because TM has institutional ownership of only 2% and GME has 95%. So, manipulators are less active in TM than GME. But wait, those manipulators has to raise the PPS one day. That's why, although PPS is going down, but the volume is low; because institutions are not selling anything. Only 5% retail traders are panicked and selling now. So, hold until the big fishes will lost their patience and manipulate the PPS up.
I would definitely be holding at this level. The upside due to better comps from March is worthing hanging in for IMO. It's difficult to gauge what the market's sentiment towards GME will be when revs/earnings return to postive growth (which they will from Q2) but I believe it's very likely to provide some support for the share price. I addition it seems likely that they'll complete are large part of the buyback fairly quickly if the price remains this far below 20 so that should provide a nice boost to earnings also.
I'd hold, or even buy more if you can. Sure there's tons of competition from some big name players, but with a forward pe of 7 and an ROE north of 16, it looks like a risk worth taking.
Bricks and mortar stores are facing a lot of hurdles, but Gamestop's brand value is strong. I wouldn't be surprised to see a big-name competitor go into partnership with them. Better for the walmarts of the world to lease out little mini-gamestops, like they do with mcdonalds and other vendors, than to try to grow their own video exchange business internally.
why, when you could just rent games via netflix and return them when your done or hate it for another, too much competition.
game exchange is decent model, give people dirt for their used stuff and resell 5x more, then repeat, but not enough to hold them up. too much overhead and more competition in my opinion.
Of course, I am wrong sometimes and hopefully for you longs I am as off on this as I was about the Colts rolling over the Saints in the superbowl, good luck longs, I think you will need it
they sell alot more than just games and make much better profits, why not take more market share and pirate a good idea, nobody can stop them, now there is no reason to go to gme where games are all they do and will be even more screwed...bus model wasn't flawed originally, just getting beaten down by all the overhead and limited profitability on cheap games
brick and mortar stores with competition from all sides including retail giants and the internet directly don't bode well for a 20$ stock, this thing will probably trade fairly at 10 a year from now, profits will be eaten by rents and admin, get out while you can, this thing has little upside and lots of downside risk, don't expect it to reach it 52 week high ever again
My advice would be to hold on and patiently wait for the market to change course with regards to the gaming sector. Every sector has its bull and bear markets. Unfortunately, the gaming sector is in the midst of a bear run. Once the market turns bullish people will jump back on board. Most novice investors follow the herd.