Based on today's price action, I believe GME has earned the top ranking of worst performing of all 2002 IPOs. What's ironic is that the company is one of the few new issues that is profitable and has achieved outstanding sequential growth. What this means to me is that in addition to the shorting scenario, some greedy people also want in on this at below the offering price. Now the ascend begins.
It is interesting to watch this thing move down. I'm inclined to buy as soon as it levels out.....the business model has many skeptical because of past actions at Baggage's and the up and down nature of the video business. This a profitable company with ***great*** sales momentum, lots of cash and an almost endless opportunity to grow store count and market share over the next several years. They have it figured out, going after the used video business that drives higher margins vs. new releases, and the big guys don't want any part of the used business. I, for one, think video will see stark technological changes over the next several years, led by Microsoft's entry into the business. Expertise will continue to be more important at store level....The Mart's, TOY, BBY will never have the same service and knowledge level that you can find at GME. They will leave the competition in the dust, in part, because the management team is good. What is most compelling is the strategy of growing mall and strip location, great distribution, with a hungry, committed management team.