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GameStop Corp. Message Board

  • stocktrader486 stocktrader486 Apr 1, 2013 10:39 AM Flag

    THIS is it. You can short or you can buy, or you can execute a spread option play on the downside or upside...

    THIS is irrational exuberance... sure GME will make money with new video game systems... but do they have an advantage over amazon or best buy or wal mart or any other retailer on this? No

    In fact they only have a disadvantage at being more pricey and the possibility of used games slowly dissipating...

    The numbers NOW are irrelevant....

    Do you think people will really think of GME buying and selling all their smart phones? Not necessarily? Ipads? Also not necessarily... I would say EBAY and other retailers rule this venue along with craigslist...

    GME is irrelevant as a major retailer... They will need to reduce their size over time to stay competitive as well as focus on online marketing/retail like amazon.

    Their model is shifting sure... but they have no competitive advantage except for used games market and that market is slowly going away.

    Sorry to say but this is a major short.

    The short float is right on this one.

    Sentiment: Strong Sell

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • * GME is a specialty retailer and so has more selection than walmart.
      * buy,sell, trade and power up rewards gives them special insights into gamers' preferences and buying patterns. that kind of market intelligence is valuable and hard to replicate.
      * game informer has the second largest periodical circulation in the US. Good luck starting something like that from scratch.
      * state laws govern the sale of used merchandise; GME is compliant in all 50 states...again, very hard to replicate.

      • 1 Reply to razor_05
      • doesnt need to be replicated as the business model is slowly declining in their revenues... HENCE THE NEED TO DIVERSIFY INTO SMART PHONES AND TABLETS

        However that is not going to add a lot of growth into their REVENUE AS THIS IS GAMESTOP not SMARTPHONE OR TABLET stop....

        GAMESTOp is going to continue to become less profitable as USED games become less and less... a one time increase to profitability due to sales of new systems will NOT become important in the bigger picture.
        This is a sell

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