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GameStop Corp. Message Board

  • varchild2010 varchild2010 Nov 14, 2011 9:49 AM Flag

    What about Pre-Purchase Goldman?

    Goldman Sachs has maintained.their neutral rating and their $24 price target. It is their belief that same store sales for the full year will be lowered come earnings day.

    While I won't disagree with what little was said by Goldman in an article posted/linked at Fox Business,
    I will say that at no time was pre-purchase considered.

    Setting aside the fact that preowned sales and Apple trade-in program also not mentioned...

    I think the biggest glaring lack of mention is Pre-purchase which was introduced in Q3.

    Since I've.seen plenty of evidence that customers are taking advantage of pre-purchasing large ticket items, I think this has a significant positive impact to pulling Q4 and Q1 2012 sales into Q3.

    SO, I disagree with Goldman on the grounds of Pre-Purchase. SO, I could not care less about the ensuing. pre-earnings panic attack today.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Sorry, what is pre-purchase as opposed to pre-order? And as soon as I see "pre" in the phrase, are you sure that anything that is pre-purchased is treated as a GAAP sale until the game is delivered? Since I'm not sure what pre-purchase refers to, I'm not sure of the GAAP implications. But whatever explanation you can offer would be appreciated. I just tried GME's web site without success.

    • It's good that you don't really worry about the day to day price though....

      • 1 Reply to Thorman_js
      • I am not careless just to clarify and be clear about the price action.

        2 weeks ago, only inside my head, I had a theory that the stock would have a pivot around $24.50 being so close to earnings report day + NPD report day.

        As of closing bell today, it appears that $24.50 is some kind of pivot / support level.

        What happens between Tuesday to Wednesday's close bell price is anyone's guess.

        With a short float near 28% the stock can get knocked around effortlessly.

        Which is why it is difficult to get too caught up here in day to day price action when we have RECORD setting short float going on in the stock.

        So..All I can do is watch to see if $24.50 holds....
        If it doesn't...I'll still hold my shares cause it makes no sense to react to a near 28% short float.

        I'd rather make my decisions on cold hard facts.

        With that said... Going into these Earnings Reports you have to put down the types of things you are looking for....The types of Questions you hope get answers....

        And you have to set your expectations for things and perspective has to split NPD stuff versus NON-NPD stuff.

        Therefore...

        I can't stress this enough. It would be wonderful to get a *peak* at the Pre-Purchase metric.

        So I am going to ZERO IN on that metric and hopefully we do get some info on it.

        It's potentially a double edged sword to have PRE-PURCHASE instaed of PRE-ORDER...

 
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