I am really curious on why this stock has such a large short interest. If there are any shorts that read this message board can you layout the facts for why you think this company stock is going down? And any longs what do you see as the possible reason this stock could underperform?
I have no position in this stock...but the rumor on the street is that they are going to miss guidance. It's a turdy little brick & mortar company in my opinion. My kids don't even go to GME anymore...they buy on-line or thru gamefly. I think that's the future.
just wondering if you have anything to back up "the rumor on the street" you referenced?
the company provided guidance of 1.53 to 1.59 (consensus is 1.56). they also estimated same store sales increases of 2% to 4%. holiday sss were up 3.4% -- disappointing but above the median of their estimate. extrapolation would lead to earnings above the median -- or above the consensus of 1.56.
Ha pulling up old posts. Nice funny thing is I still haven't gotten a good short to answer this question. Digital downloads are a pretty poor reason to short a stock with 25% short interest, and when there is a squeeze it will be bloody. They have good cash flow, buying back stock, digital sales growth, paying down debt, huge mag. audience. Right now the stock is hated oh well, I prefer a value play over say a growth stock with a stupid p/e.
A lot of people believe that GME will go out of business. Digital downloads, other platforms for games such as the ipad. The gamefly ipo. However, you'll notice that even as the short position has increased over the last 3 months, the price of GME stock has increased. There is a lot of buying going on. Personally, I'm long GME so I'm confident that GME will do very well in the future. And the shorts will have to cover at prices that higher than they originally sold at.