Unbelievable that it took Motley to answer it in their article. "Gamer Survey Shows Why GameStop Might Not Be Doomed After All". Any Gamestop position holder short or long should understand why this is so, I think. Why physical still exists in 2014.
You are shorting earnings and most likely covering yourself with options. That's called straddling and whatever you're doing it's a short term position. Not rocket science my friend.
Wouldn't it be advantageous to keep the share up also for the stock buyback program to buy less shares? Gee I think you are onto something here....
Shorting a stock for a week and talking about the possibility of a long-term fundamental decline in a product to affect that week long short position. Look in the mirror dude.
Publishers\game makers can choose either avenue these days. Digital or Physical. It's there, just choose it. Why are there still physical games and still consoles that play physical games in 2014? That's the only question you need to answer. Once you do that you can properly evaluate your position, short or long. Stop dancing around and start answering that question, for your own sake.
One other thing to think about. at the new level of the dividend, 1.32\share, a 3% yield now puts GME's share price at 44.
Here's some advice. Don't take advice from Motley Fool. Or any fool for that matter. If your short window is 5 years, then you have a chance of being right. Idiots at Fool are short GME and have been trying to affect the outcome for their stock with relentless pro-short rants FOR YEARS NOW. You could be right or you could be wrong being short but unless your shorting window is wide open for a LONG time period, say 5-10 years you will not be able to call the shot, meaning when and if it happens that GME slips on revenue. Fool is impatient and trying to affect the outcome. Hard to believe people get paid to work at Fool. Shallow thinkers.
Gamestop exec management seems to be one of the most anti-short teams around. Announcement of the dividend increase after hours. Love it! Any short that did not expect this, expect more of the same going forward. ;)
"If true get ready for special dividend." Exactly. I would expect a $1 a share special dividend is forthcoming. Anyone short, you are gonna pay it.
Wait a second...If I am a PC gamer I can't own a console or play console games too. Farts!