Musk really did say to CNBC's Philip LeBeau, "the valuation we have right now is more than we have any right to deserve," and "our stock price is obviously far too high" - Torque News
Sentiment: Strong Sell
GameStop’s U.S. market share of new PS3 and Xbox 360 software is 47.7%. New systems will be a huge boom to the company.
Used game market is not going to go away. Gamers usually keep old systems and will continue to have a love for old games. This has always been the case through generations of systems. Also, GME will be able to pick up old systems cheaper so margins will be maintained. In addition, they can ship systems and games to third world countries an sell for a profit.
Stock dropped because they layed off 200 of 1100 employees. But, this was expected and will actually be a positive. They cut the greek employees that were dead weight since they are getting out of that region, so it will be a cash benefit going forward.
Good question, but my instinct would be that your more likely to let your gains ride and the positive feedback on your thesis would strengthen your resolve in your position. That is assuming your looking for a substantial move, not just a short-term trader.