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GameStop Corp. Message Board

  • varchild2010 varchild2010 Aug 26, 2011 9:53 AM Flag

    Insider buying

    CEO is buying stock....2.3k......8/22/11.

    So not concerned much about the Onlive Coupon Sideshow Kabuki theatre.
    Or the fact that the bears keep pumping out negativity articles on the stock.

    I find it amusing that the negativity bears point out a dip in preowned sales in 4th quarter 2010, and now we see 12% growth in preowned in 2nd quarter 2011. Do the bears bother to tell us that they were simply wrong?

    no of course not. The bears are on autopilot where they will predict drops in Preowned sales every single waking breath regardless of previous earnings reports.

    If I kept predicting that we are going to have an active hurricane season every season then eventually I will be proven right!

    Thats the gist of the enyire bear argument.
    They predict doom and gloom for Gamestop perpetually hoping eventually something bad will happen and they can boast and brag.

    We have Rich Munarriz for example slapping himself on the back job well done being a bear when GME took that initial drop to 18.50. It closed on the day up nearly 5%. Rich has yet to admit being wrong.

    We have Evan Wilson of Pacific Crest talking about preowned sales trouble in 4th quarter of 2010 as proof that the business has peaked and doom and gloom is ahead. He further trashes Gamestop's digital strategy by omitting and discussion on the power up rewards program aspect, or Impulse, Or the growth in Game Informer which is now digital itself...

    Now that we see 69% digital growth and 12% preowned growth which are the bigges gross margin businesses of Gamestop, will Evan Wilson admit his error? Of course not!

    Don't worry shorts and Putz buyers eventually Evan and Rich and Investopedia ad Zacks bear journalists will be right....even if that takes a century or two!!!!!

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    • You're thinking about impulse buying. Yes but there are stronger reasons.

      Don't forget you can resell your game now. Digital can't be resold.

      Developers think they can cut out the $20 for the store + $5 for packaging + disc. Guess what? $5 for the packaging increases the perceived value much morfe than $5. Money well spent. And Gamestop's bottom line is just cents on the dollar. Nearly all of that $20 is spent on reasonable stuff like advertising, setting the games on display in the first place etc. and last but not least subsidizing getting out those consoles to the customers where gamestop is not making any money at all.

      Business is not about wishful thinking. I give a shit about Gamestop and how much money they make. Yet they just happen to have a good business model benefitting the customer. It's the developer's fault if they make play once - throw away games. Don't blame Gamestop taking advantage of that.

      We already have a glimpse into the future regarding digital distribution. It will kill meaningful games, it will kill game collecting, it will kill console gaming and it will drastically lower prices. It's called the appstore. Finally no cheap ass customers buying used. Everybody buys new for $.79.

    • bodi36@ymail.com bodi36 Aug 31, 2011 5:39 PM Flag

      So who's all buying gamestop now ?

    • THANK YOU BASED GOD

    • bodi36@ymail.com bodi36 Aug 31, 2011 11:49 AM Flag

      Let me tell u this k. yall can talk all this stuff about digital n downloads n such but there's nothing like actually going to the store and buying new product no matter what it is cause see thats how i roll and am so glad i didn't get caught up in those big buy putz right before earnings last quarter cause i double down on my gamestop and doing very well right now on my buy of gamestop thank you varchild

    • They are just wrong. Yes, digital is the future. Yes, retail will go broke. But what these guys fail to understand is that there is a huge difference in media like CD and DVD and vide games.

      First of all we saw the failure of CDs. Well, no big deal. Just download and pay for that single song you are interested in. No more albums. Downloads no problem as mp3 file size is small. Disadvantage: you can't sell downloads -> no more CDs as gift. Instead you give away DVDs for your loved ones.

      Now we are seeing the failure of DVDs. Much more prolonged as digital distribution is not viable for films yet. File sizes are just that much bigger. Instead of a 4mb file we are talking 4000 mb here. And films are more and more distributed on Bluray as HD creates demand for higher resolution further increasing file size. In the long run DVD/Blueray will give way to digital distribution too.

      The difference in video games is that there is always the need for special hardware. There are just no standards. Each company has its own console, its own format, its own controller. Video games are per se coupled with specialty hardware. It started in the arcades and I can see no end. The consoles itself (we are going to see new ones soon), Kinect, Move, Guitar Hero you name it. There will always be some kind of special hardware required. That in turn means the video games retail business is much more robust than other media and will be around much longer, long after the last Blueray disc was sold. And of course as digital makes for a crappy gift the failure of general physical media formats will probably enhance the gift value of video games.

      Make no mistake. Gamestop is in crisis. A crisis because the video games industry is in crisis due to crappy products. Don't blame Gamestop for 3DS and Wii U. Don't blame them for the general crisis in retail.

      Gamestop is outperforming the video games retail business and thus increasing its moat.

      Take a look at the UK. HMV going bankrupt or barely making it and The Game Group surviving will prove my point.

      • 1 Reply to jantrou
      • Don't underestimate the WII U system concept going with a console / tablet hybrid.

        Plus, their is the hidden possible but only rumored catalyst coming for WII U.
        I mean we haven't seen a single Final Fantasy Main series video game from a Nintendo Console since Final Fantasy VI, arguably the best one in the entire series.

        Final Fantasy XV as a debut title for the WII U?
        Think about it!

        P.S. It slipped my mind but Q2 2011 had to compete with sales of Final Fantasy 13 last year as well as Starcraft 2.

        We actually had 2 AAAA titles last year at this time.
        This year just LA NOIRE if that counts as AAAA.

        Truly amazing to witness a 15+% reversal in share price action in the same day on Gamestop's earnings report day. That ain't normal!

        Gamestop still has a hefty bunch of skeptic anxst built into the stock over speculation on the future of Gaming.

    • There is literally no better guarantee than gamestop. Physical media is the way of the future and impulse is 95 percent of the digital market. Rather have this stock than gold in my hands. Strong buy.

 
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