Just the anticipation of earnings will send this up to 30. Once the brute reality of the numbers comes out, expect this to go to 33-35 after earnings.
Why? I'll give three reasons:
1) ERTS reported strong sales, up 40% from last year. ERTS stock is down b/c it's poorly managed, but sales are up, and that's all that counts for GME.
2) Nintendo--reported strong sales of the Wii and games. Wii Fit bringing in soccer moms which are, therefore, even happier to buy a Wii for their kids since they can get in on the fun too. Mario Kart games provide cost-effecient entertainment to families on a budget, as do the inevitable trade-ins and used games that GME offers.
3) Activision Blizzard--ATVI is best of breed, not ERTS, and ATVI had beater than expected sales, October was strong, and November-December will be great, as their strong line-up includes tried and true franchise winners. We all know who they are. Call of Duty, World of Warcraft, etc.
Don't forget titles like Prince of Persia and Tomb Raider that have established fan bases.
It is simply impossible for ERTS, Nintendo, and ATVI to have strong sales without Gamestop having strong sales. More consoles, more new games + down economy = more used game trade-ins and profits for GME.
Buy now before Nov 20.
Just want to add to my previous post the good news about Gears 2 sales. This should help guidance. GME way oversold. Once reality kicks in, it will kick in hard.
re-iterating the obvious--strong buy.
Historically when the market is lower in Oct and trends that way the first two weeks in Nov it goes up in the later part of the month thru the first week of December. Tomorrow may be the capitulation day which is coming real soon. Whatever the price is that day it will offer a good stock buy. As an elem. teacher and before that middle school, almost all my kids want computer games as their primary gift this Christmas and is the major thing they do after school. I see this and airlines as two good areas to buy in soon.
"You sold covered calls, which gave you what a fwe dollars compared to $10-$20 in damage holding the stock? That's why I didn't sell covered calls at $35 and $38. Getting a few $$ in calls wasn't worth taking $10-$20 in damage."
I believe we think about the same in our trading strategies. I'm also out, looking to get back in around the low 24's. That so far, seems to be where GME bottoms out before its next leg up. Of course that may not always stay true, but that's the risks we take as traders.
As to CALLS you fail to see the big picture. Its like 1+1+1+1 adds up eventually. I have been buying and selling GME calls since early 2007. So far my NET profit on the transactions has been $24,182.00.
You sold covered calls, which gave you what a fwe dollars compared to $10-$20 in damage holding the stock? That's why I didn't sell covered calls at $35 and $38. Getting a few $$ in calls wasn't worth taking $10-$20 in damage. Now I can simply repurchase the shares at a much lower price without dealing with any of the drop. And yes, $2 is nothing in this market. Today it's holding up very well though. I was hoping it would see the 22-23 level today so I could jump in.
Are you actually being serious? The stock is at $24.85 right now. It only takes a $2 drop to get into my price range. Remember, when I was selling at $35 and $38, you wondered what I was thinking then as well. A sharp drop in the market could pound the stock to the low 20's range where it would be such a screaming buy. I am being patient here and not chasing.