I think it adds .5 to .10 this year and maybe .25 to .30 next year to bottom line. That may be only 7% or 8% of earnings, but that means they may make $3.50 per share next year. Of course, if they keep buying back shares at this rate, add another .10 or so and we are atalking $3.60 per share as a real possibility for 2012. How is this thing trading at 23? That's a PE of 6.5 times next year's earnings for a company growing double digits per year, with tons of cash and very little, if any debt, by next fiscal year. They will become so cheap, someone will buy them. At this price, a $38 per share offer (about a 65% premium) would still be a bargain at about 11 or 12 times earnings trailing earnings. Google, Apple, Best Buy, etc. could offer 5.25 billion ($38 X 139 million shares outstanding) and get quite a bargain. The cash and real estate alone is worht that much. I am long and looking for 35.
Sorry, cash is nearly nothing considering the market cap. And real estate is all rented.
In fact in the case of bankruptcy a retail company has hidden debt as those operating leases have a duration of several years. That means hundreds of millions in hidden debt.
Of course Gamestop is still a very healthy business with the real prospect of a short squeeze. Shares are worth $35 to $45 IMO and could reach several times that price if shorts try to cover. p/e 30 isn't that outrageous in that case! Think about VW when they were worth Euro 30 per share and Porsche cornered the shares via options. At one point in time they were above Euro 1000.