So let me get this straight: we are trading at 6.4X the top end of their reaffirmed guidance estimate -- 6.4 X $3.30= 21. A PE of 6 and a half, no debt, a dividend which will only grow, share buybacks which will continue to add value, WII U coming out digital expanding at 40 to 50 percent, and new revenue from the Apple products. Why is this not trading at 35? How many more years will the shorts claim this is a dead business with profits reaching $3.00/share and hundreds of millions in cash flow? Next year they will do $4.00 per share, then we can trade at 5X earnings. Ridiculous manipulation going on.
The shorts realize Mgt is committed to the crack house business model. The crack is drying up and folks won't be trading in their Apple products as often as used games. Digtal Business might keep the name around however the bottom line is they need to consolidate to destination stores like Half Price Books.
Reminds me of when Sears had Catalog Stores in every town..
I'll explain why. Read my blog post on why I just sold GME after holding for years. It may save you some money. I was a long bull on GME and held for years. I'm out of the stock as I said and don't hold a position long or short in shares or options.
The shorts were right about the stock but for the wrong reasons it turns out. They got lucky. Read why...
The problem is that when SSS fall 12.5%, the future does not look bright. No company in any industry can continue to make money with a number like that. Eventually it will catch up to them. Granted GME has been unfairly labeled as dead, far too early, but the irony is that it could eventually come true. Again, they could just take themselves private, shrink it down, and coast on piles of money to keep for themselves.