Will be interesting to see if GME holds up going into a weekend with what is obviously turmoil on the inside with insiders selling and now leaving. I know I would not be a bagholder over the weekend. Today just be yet another low or possible small quick head fake pop only to fail soon after... Any bets?
P-J analyst Gitas acknowledges growing profits and margins in 2010 and 2011, but the world will end in 2012 as per Mayan predictions:
"To be sure, GameStop's business is not going away anytime soon," the analyst wrote. Gikas expects GameStop will gain market share and grow its margins during 2010-2012, but will not offset sales declines related to the current hardware lifecycle and the shift to digital entertainment. He estimates EPS of $2.65 for fiscal 2010 and $2.80 for fiscal 2011.
"Although [GameStop's] valuation and cash flow characteristics look attractive, we find it difficult to recommend a business with little long-term earnings growth," Gikas said.