There is a lot about the market I do not know, but I keep wondering why some people are bashing GME stock. I do have stock in GameStop and I watch as their profits go up and the stock goes down. Cramer said to sell the stock on his show and I fell over laughing.
Can someone please tell me how this all works. A company posts the largest gain in their history in 2008. In 2009, a year with little in the overall way of major game releases, the company continues to open new stores world wide, they open stores on military bases, they form a digital division and invest in digital download technology and they were making even with last year. 3rd quarter profits were up over last years and 4th quarter looks to beat last year. The company released guidance that it would be up 2 - 18% over last year. Sounds good to me but the stock continues to drop. I am just wondering why everyone sounds gloomy and why the stock keeps falling.
FWIW, DNDN has made me a fortune to date. I've been in DNDN for years with plenty of heartbreaking moments. But I always hung in there and added during times of heavy manipulation. In retrospect, those were times of gifted opportunity. This just out today regarding DNDN:
SEC OIG Investigating SEC Complicity in Naked Short Selling
Posted on 01 December 2009 by Mark Mitchell
The Office of the Inspector General of the Securities and Exchange Commission not long ago submitted a semi-annual report to Congress. There are two items in the report of interest to those of us who have argued that the SEC has turned a blind eye towards, or even assisted, unscrupulous hedge funds that make their fortunes destroying public companies for profit.
The first item reads as follow:
“The OIG has opened an investigation into complaints from an investor alleging that the SEC failed to investigate instances of market manipulation and other misconduct in connection with the review, and eventual non-approval, of a developmental drug. The investor also has alleged that the SEC failed to investigate a recent bear raid on the stock of the company that developed the drug, causing a severe plunge in the stock price. The OIG has reviewed several hundred pages of documents, including numerous emails and attachments provided by the complainant. The OIG expects to complete its investigation and issue a report of investigation in the next reporting period.”
I have confirmed that this is a reference to the bear raid on Dendreon, described in considerable detail by Deep Capture. There is plenty of evidence — including, perhaps, those documents and emails referred to by the OIG — pointing to miscreancy in this case. Indeed, it is one of the more despicable cases of market manipulation on record – and many cancer patients were deprived of potentially life-extending treatment as a result. We look forward to reading the OIG’s report – it should be a doozy.
The second item of interest in the OIG report is this:
“The OIG continued its investigation of an allegation that SEC staff engaged in retaliation against a company after it publicly complained about naked short selling in the company’s stock. During this reporting period, the OIG took the sworn testimony of the staff attorney who worked on the matter and reviewed numerous relevant documents. The OIG has completed its investigative work and plans to issue its report of investigation prior to the end of the next semiannual reporting period.”
It has long been a contention of Deep Capture that the SEC has not just ignored allegations of naked short selling, but has gone after companies that complain about it, often at the behest of the short sellers themselves. This report, too, should be interesting, to say the least.
It wasn’t so long ago that people who did battle against abusive short selling and captured government officials were labeled as conspiracy theorists. Now, thanks to SEC Inspector General David Kotz and a few other honest people in government – people like Senator Ted Kaufman – we might finally see some light shed on some of the shenanigans that have made America look an awful lot like a third world basket case.
Yes, there are hedge funds that do bad things.
Yes, there are government officials who help them.
It’s an ugly reality, and the OIG is to be commended for treating serious allegations as they should be treated – i.e. seriously.
Oh, if I had only thought of that last year.
Now I am short time trading and bouncing between doing calls and puts with the hope of reducing my original long position to a more "reasonable" PPS. I'm doing OK but its a lot of work (need to be constantly alert).
Its tough going though because I still think the company is grossly undervalued BUT I have to have doubts as to how its going to play out. The next few weeks may finally be make or break (for me).
Lionelman, Anyone who holds a stock that is being "gamed" or "played" for the long term is going to get what they have coming to them. GME is the perfect candidate for a trading stock, it moves large percentages per day, the volume is large enough that you can dump your holdings really quickly, but it isn't a really high volume stock like some more legit companies (the VZ and Aapl's of the world). If you actually believe this stock is being gamed, do yourself a favor and dump it and move on to something where the PPS resembles the value of the company.
I just completed my personal survey of GME's Christmas business. I went over to my small local store to see about buying myself a Christmas present, and take a look at how many other shoppers were present. This is on a Tuesday afternoon at 1:30 local time. There were about 5 shoppers in the store when I arrived and 7 when I left. I asked the cashier how their Christmas business was doing. He said "A little bit slower than last year, but OK".
That was what I expected. Then I asked him about how his stock was holding out on Call of Duty Modern Warfare 2 and he said "We have enough, would you like a copy right now?"
I told him I already have it but I am going to be buying some gift cards so my son's can pick up a copy when they want.
So, my unnofficial/official survey of GME's business this Christmas has led me to conclude, they are doing just fine.
My advice. Buy businesses and not tickers. GME is a solid business at a bargain price. Mr. Market has given investors a chance to buy a growing business in an industry that has proven legs at a great discount. Your margin of safety is large on GME.
This could be a buyout at this price or wait until earnings come out to see what is really happening. Also if GME does bad it is not due to GME as much as economic headwinds in retail which eventually will subside. In meantime GME invests for the future which looks plenty bright. If I could buyout the whole company today I would and take it private at 35/share or under and consider it a bargain