Just picked up some shares. I think the investing public is way undervaluing this company and missing some key positives. Single digit PE, strong cash flows, large stock buybacks, a bid divy, all at the bottom of the console cycle bodes well for investors getting in now. Once the new wii, xbox, and playstation come out, sales should bounce nicely, along with earnings. The other silver lining pertains to the strong cash flow and zero debt...makes this company a prime candidate for a leveraged buyout by private equity...could get interesting. Good luck to all.
Your timing is good. You only could have done better if you grabbed some under $16. Don't panic if it drops back below $18 though. There is some big money hedge fund with a large short position, so they are going to try any trick they can to scare people into selling. However, as long as GME continues with their business plan, institutions will start taking positions and that kind of buying volume will drive the price up in spite of any short manipulation. But the short hedge fund is not going to panic until they see evidence of growth in the emerging digital segment and used communication devices, as well as other revenue streams yet to come. They are just not convinced that Gamestop can transition from physical to virtual, and it will take at least a year to prove that to them. However, if GME can perform, we are going to see the short squeeze of the decade in 2013 or 2014. If you are here for a short term trade of 10% or so, you may just get that before the next earnings release.