what we know is that
the pe is about half of the market average so just at a normal valuation
the stock price should double......
we know they are buying back about 500m of stock and debt so lets guess about all of the 200m in debt will be gone so gme is about debt free!!!
we know there are new game systems out with new games which should lead to more trade ins of old stuff, the bread and butter of gme....
we know gme provides a great footprint that is highly visable and IS
the 3rd hang out for many tweens behind school and home
we know there small low overhead stores
provide a highly fungable presance in a lower occupancy market
i.e they might be able to lower cost even more the next few years
and or will be able to continue the low cost growth they have mastered
and i long yes at a price a little higher than todays close of about 19.50
will i buy more if it keep dropping o yes i will!!!
GME has been moved every month for the last 8 months that I have watched the stock by the options market. Options exp. March 18th the company might be trying to break the option traders cycle by changing up the dates. I personally view this as a positive for stock holders.
Actually I sold at $22.5 in Jan. missed the top cause I am greedy thought we would go to $24. Then when everyone pushed the shares lower I had to buy under $20 and then last month sold the 20 covered calls. So yea I am long right now, and yea I have been long in the past, but most traders can be nimble. And we read past signs and yoy sales numbers. I think you might get your shorts down to $18 if your lucky in the next week if everything that can go wrong does. Personally I am looking at $25 by april. But even if I am wrong the $20 calls if you sell monthly net me between .50 and a dollar every month. Positive talk isn't what I want to be honest. I just want rational conversation and why bother with the name calling? Calling me an idiot demeans you.
LOL! You are just another underwater LONG that does not want to hear anything but POSITIVE talk on this board. If you must know, I have been short since $21. And if you think this this is the feel good board for longs then you are IDIOT! Try some pity on your trading account, sounds like you need it.! LMFAO!!!
Why do you post on this board? If you short GME then you should keep your thesis to yourself, and let the longs keep losing money. Either you are paid to waste time on here, which if you actually influenced anyone I would be shocked. Or you are a Short that is underwater? Did you short before Christmas? Did you short at $18 and just refuse to cover? Either way I kinda pity you.
WOW, do people really throw their hard earned money into a stock because the stock performed well in certain past months? Please tell me that you are not serious? I get it, this is a circus and the longs are CLOWNS; well you are doing a GREAT job, because I'm busting up!!
Check out the Put Options for March what do you see =)
You sir are a STOCK GENUIS! LOL!!!
Most of the things you said , you could say a year ago. People bought the stock for those reasons and they quit, they were frustrated with that stock, saying: "Markets can remain irrational longer than you can remain solvent" (Keynes).
However GME is around the same levels , but the EPS will rise this year to a record.The shorts are trying harder they have now 37M shares shorts.
GME increased It's market share in the US , despite of WMT, BBY, AMZN.and increased the revenue in the US despite of video games industry was down in 2010.
NPD is expecting growth in 2011 after 2 years of decline.
Digital Disturbtion is here , but it should take few years to be more senificant.The comparison between GME & BlockBuster(that people often do) is very problematic for veriaty of reasons. The demand for movies is different from the demand for video games.
GME in it's actions shows they want to grow in the digital field.2010 was good start as GME started to sell digtal add-on in stores and online.I believe we will hear in their report how those programs were doing.
Europe had tough years in 2009-2010.GME margins there are low , there is room for growth there.GME opened many stores there , but that was offset by same store sells was down.If we have growth in Europe in 2011 it will great for GME.
We have to remember that the stock price does not always reflects it's fund. espacially when you have about of 25% shares shorts.
The important thing to remember is that perception does not always equal reality. The perception is that retail gaming is dead, GME's days are numbered and in a few years time nobody will be buying boxed retail productions.
One very good example of this happening in the past I can think of it Walgreens and Drugstore.com. During the dot com boom Walgreens stock price lost about 40% of it's value due to the threat from Drugstore.com and the internet and people were saying that in soon nobody would be using drug stores and the retail model was dead. Fast forward to today, Walgreens is one of the great success stories of the market and Drugstore.com has lost something like 97% of it's value. Walgreens embraced digital in much the same way GME is doing now - slow and steady, deliberate, in a way that fits with their core business and plays to their strengths.
I'm not saying digital is not a threat and GME doesn't have to evolve. But what Dan is saying about comparisons with movies and Blockbuster is very valid - people forget that it was piracy, not the move to digital distribution that really killed Blockbuster and the music industry. Digital distribution was simply a necessary response to the threat of piracy. Same with PC games. Steam only found a market because piracy destroyed the boxed retail market and companies like GME couldn't justify so much shelf space to PC products, and Steam has done an excellent job of combating piracy.
Console gaming does not face these same challenges to the same degree.
GME definitely has work to do to bring it's model into the 21st century and challenges ahead, but they are still massively profitable, have one of the strongest brands in gaming and continue to gain market share throughout the recession. Don't forget that the economy is still struggling and unemployment is around 10% - what happens when the economic recovery truly kicks in? GME are poised to benefit strongly.