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GameStop Corp. Message Board

  • eddyfamilyemail eddyfamilyemail Apr 2, 2012 7:13 AM Flag

    GME is seriously undervalued read this

    Rumor mill. Go back a few years and it was the death of GME rumoer that was BBY was starting to accept used games. So does Amazon, and Toys R Us. Yet over the next 3 years since then GME paid off its debt and has free cash flow that keeps increasing.

    The next rumor mill is they are the same old brick and mortar like BBY and Blockbuster. Well BBI and BBY (2.2 Billion in debt) are/were saddled with debt payments that they couldn't afford as well as Gamegroup in Europe that had to much debt. Well Gamestop has 0 debt, now pay a dividend and buying back shares as they have 600 million free cash flow annually and are using it for that and buying up digital companies. They diversified their portfolio, moved into the digital fight with their own app store and now the mobile devices. (disclosure I'm short BBY since it hit 27 probably cover this week though)

    And the last effort I can see and it was bad is the rumor mill on the next generation devices. They couldn't use the WII device as its already out and so proved to be using hard games not all download. Well lets look at Sony's woes and talk about their game changing BluRay player that changed the disc industry and helped save them when they needed it. Whatever next generation device they make will play BluRay and for that reason will play discs and I believe they will learn from their mistakes and it will also play previous edition games but even if it didn't they will not go all downloadable. They might start looking into pay for play online and start charging a fee for certain areas like X-Box does. What I would like to see from Microsoft is that they start allowing BluRay and pay a fee to Sony but that is highly unlikely for them. What is more than likely is they allow previous games to be played as well so they can keep the online revenue from those games streaming. Tell me why you would have online content and game sections that people pay a fee for and have those games just play online and then you would wipe out that revenue for what reason? Microsoft isn't that stupid but investors of GME believed that lie for both Sony and MSFT when a few articles or rumor came out. Well a few articles telling you how stupid that was are now out as well. Make your own decisions but make them wisely if you took a loss at a shorts expense feel good in knowing they will get theirs as gme is buying back its stock aggresively and paying a dividend know. With 30M shares held by management and 80million shares by institutions/MM and 55Million shares short. LOL if you do that math and that is what is reported with the fact of management and Shares Short being accurate you get 165M shares but their are only 134Million shares outstanding how is that. Well not all the shorts are the average joes and when MM/Institutions short and buy the short for long term hold the shares are counted twice. So they are the reason you get rumor mill so they can buy up the stock for the longterm hold up to $33. At the expense of the you. But their days are short as I said with 30m held by management and 12m being bought a year their won't be many shares left soon it will be a Volkswagon and Porsche short gambit. I can explain the Volkswagon short problem at another time or you can look the Porsche lawsuit as MM lost millions as they bought up all the shares of VW and the MM were screwed doubling the stock to cover. I hope that happens to MM again but only time will tell. I'm in at the Book Value of the company which is 22.25. Funny they would have you believe we are trading so high but they are currently under book value today and that is why the analyst have a $30 target on the company. GME trades below book value, even BBY is trading $7 above its book value.

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    • I cant agree more. GME is extremely undervalued. Look at its PE and price to book and its obvious. It has a healthy balance sheet and has begin to look at buying online companies as well. If times change so will GME. It will be a big player for many years to come. This is my largest investment and I have no plans of selling. I will just enjoy the dividend as it increases.

    • all of your dd doesnt matter,,,, gme is like investing in the horse and buggy makers because they are debtfree just before the car is introduced then mass produced. if you want some new and wild to invest in,, google search 'fxi cottoncandy'............ and you will see the car in the gme demise.

27.395+0.255(+0.94%)10:29 AMEDT