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IBDvalueinvestin (99.58)

Olde timers don't understand why GME keeps making profits in a recession.

Recs

5

January 08, 2009 – Comments (3) | RELATED TICKERS: GME

The reason is because these olde timers did not grow up with computers or video games.

They don't understand that the under 20 age group today would rather buy that new game out today rather than buy clothes or toys. 

Today's video games are as addictive as cigarettes were to teens in the 1950's 

Just like Marlboro grew like a monster on addicting teens in the 1950's-1970's so too will GME grow into a monster stock caused by its addictive nature.

 So which fund managers will profit from this? The new breed fund managers aged 25-35 will profit because they are young enough to understand the addictive nature of video games.

I have two sons and this fall and winter they have spent every spare minute playing video games leaving us with screaming at them to do other things besides playing video games. But as soon as were not watching they are buying more games and keep playing. Does that sound familiar to you olde timers? I used to go out and buy cigarettes and smoke whenever my parents weren't watching too much like today's video gamer kids defying their parents wishes.. 

3 Comments – Post Your Own

#1) On January 08, 2009 at 12:47 PM, socialconscious wrote:

Agreed and rec'd.IMHO gamers are a fast growing yet nascent culture now much like hip-hop in the early days. Also much like hip hop and the music leading to tv, clothes, accesories, bling and other lifestyle choices this will happen to the gamers as they already have G4 televison. My nickle Social C

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#2) On January 08, 2009 at 4:40 PM, SideShowMel0329 (78.68) wrote:

Then I would recommend you invest directly into the software/game development industry rather than at its retail sector. Retail sales aren't always about how demanding the products they sell are, but how well they market, advertise, and manage their finances.

Investing in Gamestop just because games are popular doesn't seem like the right strategy. However, if GME has the ability to offer competative prices, create bargains, advertise their services, and strike unique deals with developer, then it's probably a good buy.

Another reason I'm not invested in GME is because of the growing popularity of internet downloads. I predict physical game sales will go the same way physical music sales went. Games are becoming easier to download from Xbox Live, Steam, Fileplanet, etc. A lot of people are skipping the hassle of going to a retail store and are just doing everything electronically.

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#3) On January 08, 2009 at 7:59 PM, motleyanimal (97.36) wrote:

I like ERTS in this sector. It will be a good performer, at least until Uncle Obama sends all the kids off to work on collective farms.

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