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Varchild2008 (84.15)

I'm the Bull argument on Gamestop (GME)



December 07, 2011 – Comments (4) | RELATED TICKERS: GME

I'm the Bullish argument for Gamestop...I mean I provide that argument on GME....
Cause I am long the stock and remain bullish enough to keep accumulating it.

Granted their may be a time soon where I will need to trim my stake...I have bills to pay after all...

But....Getting worked up over my bullish arguments for GME is silly...  Motley Fool has put out several articles presenting Bearish views on GME.

It's not like you are getting a 1 sided opinion here... You have mine....and you have Motley Fool...

You have my opinion....and you have 66 All Stars red thumbing the stock and a lot of them if not all of them providing pitches for you to read.

Plenty of negative opinions on Gamestop to go around.

But it all boils down to: 

A) Competition


B)  Digital Dnloading

The BEARS see this as an insurmountable headwind for us longs....  Where growth slows until Gamestop stores start becoming loss making retail businesses.....At that point Gamestop has to dump Leases and patch up losses with Digital Sales.

That is the BEARISH view.

Not my view.... I am BULLISH....

Now understand how Motley Fool works????    Those who choose to express and talk about investments and strategies will do so and present their opinions.

All I can say is if you want to buy PUTS or SHORT .....Gamestop....feel free....I just hope you did your homework...your own research....and read through the Earnings Conference Transcripts and Reports and so on....

I hope you studied the Margins carefully and understand the difference between them...

if you do not know what OPERATING MARGINS versus NET MARGINS are....then learn them.

Learn about Cash Flow....and other terminology you see in a balance sheet..... Learn them....

Do yourself a favor too and channel check Gamestop stores.... Too many investors (long or short) GME have come out with statements that read:

"I HAVE NEVER BEEN IN A GAMESTOP IN 10+ years!!!   But boy!!!  I am SHORT this stock."

Really?  You take a short position in Gamestop and never stepped foot in a Gamestop for YEARS?

Just because you personally stopped buying video games from Gamestop..... or Amazon....or Target.....Or Wall Mart.....or Costco....or wherever you used to buy them....

Just because YOU changed your habits.... Doesn't automatically mean everyone else on Planet Earth followed you and did the same as you.  It doesn't..   Channel Checking is important... You can't visit all 6000+ stores of Gamestop....You can't channel check all the stores in your State/Province.

But....You can at least channel check some of them and get a feel for things and say...

Gee....Maybe I should stop being LONG the stock..... if you didn't like what you saw or experienced.


Gee....Maybe I should stop being SHORT the stock....If you found yourself amazed and shocked at what you saw being 180 degrees what you thought you would see...

It's that simple....  Channel Check + Homework + Understanding how to read a Balance Sheet.

Too many think they can practically randomly buy PUTs or CALLs...go LONG or SHORT....and not bother to do anything....

4 Comments – Post Your Own

#1) On December 08, 2011 at 12:26 PM, pj19 (20.25) wrote:

I'm a huge fan of GME the stock.  I buy most of my games online but I sometimes stop by a store when my wife is in the next door Target.

It is always packed out with people buying and selling used games.  I find that their employees are very knowledgeable and friendly.

I spoke to one of them about the release of Skyrim and Modern Warfare 3 which happened the same week.  He told me if I wanted to get in on the midnight release of Skyrim, I would need to be there at least two hours early because they expected 1000+ people there for it.  I don't live in a big city and we have three Gamestops...

I have replied to a previous post about their financial statements.  They have some sick margins on their used game business, and they are very profitable.  

They have started moving into the digital marketplace with some new promotions for their website, a new customer loyalty program, and the purchase of last year.  They have the highest short interest of any S&P500 company and I think its because everyone thinks they have missed the train on the digital download business.  I disagree.  They know their industry very well and have adapted in the past and I think they are transitioning very profitably into digital sales.

Between the high short interest and the aggressive stock buy back program they have implemented I think this stock has no where to go but up.  

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#2) On December 08, 2011 at 3:24 PM, ikkyu2 (98.18) wrote:

You are down 60 CAPS points on your GME pick as of this writing.  That's probably worth disclosing.

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#3) On December 09, 2011 at 5:03 PM, Varchild2008 (84.15) wrote:

Everything is in my Profile page ikkyu2.

Do you disclose every single one of your positions and how they are doing on a daily basis?

My CAPS pick on Gamestop is for 5 plus years anyhow.

How about disclosing what my CAPS pick in Gamestop was at the beginning of the year....and where it is now.... Cause if I am not mistaken I gained at least 10 CAPS points this year and counting.

Since my CAPS pick was made before the stock bottomed
August 2010, I took big hits up to then.  It seems to be on the recovery.

But alas... I see no need to constantly disclose when YOU of all people should be fully aware of the PROFILE page which fully discloses everything right there.

You say I did not disclose something and yet you know exactly what my CAPS pick score is.  So is disclosed.

Otherwise you wouldn't know what the CAPS pick score was.

The PROFILE page is there for a reason....  I try to be as honest with it as possible..if I change stock investments then I try to remember to quickly update the profile page.

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#4) On December 09, 2011 at 5:07 PM, Varchild2008 (84.15) wrote:

Oh and CHK  never bothered to disclose....

He said he was going to keep his red thumb on Gamestop for a really long time....

Then he just changes his mind and closes his position within weeks.

Once he had 10 points in the green he closes it..... And closed it prior to the Earnings Report release if I am not mistaken.

All we get from CHK, who at the time was a 100 Ranked Caps Player...#1 All STAR player on Motley Fool....

All we got from CHK was a comment made to one of my Blog Posts.. the way.... I closed my position for 10 points.

Had CHK kept it I'd be curious to know what his CAPS points would look like now.

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