Varchild's New Retirement Stock (GME)
2 weeks ago I ditched my former Retirement Stock (DPS)....for (GME). Did it work out?
I sold 526 shares of DPS at a share price of $37.43 (currently trades at $37.90)
I bought 1470 shares of (GME) at an average unit cost of $19.78. (currently trades at $21.95)
In order to purchase the 1,470 shares I also had to sell (GAME) at a share price of $6.70.
So yes... My Move most definitely worked out.
Why did it?
This move was not done because think Dr. Pepper Snapple Group isn't a good investment.... or isn't *cheap* On the contrary, I think Dr. Pepper Snapple Group is setting itself up to have several excellent growth years ahead of it.... It is a wonderful retirement stock to have. Much cheaper than KO or PEP in terms of its smaller size and bigger chance for growth.
I never fell out of favor with DPS..... It's just that when you have (GME) sitting there with a P/E 1/2 that of (DPS)'s P/E then it made a lot of sense.
Why not CHASE after name brand stocks trading barely above book value? GME book value was $18.30 and I got in at $19.78. GAMESTOP practically gave me shares of itself for Free!
The share price it sat was a steal...it was a DEAL of a life time.... And when I have a house to pay off then I am going to make RISKY moves.... But, I track stocks on my Watch List for MONTHS and GME was tracked since 2008.....since I got into the Stock Market.
I saw GME trading in the $30s and $40s and felt that the stock was too expensive with too high a P/E for me to get into....get interested in.... so....I followed in and Blogged about it for months without buying shares.
The reality is you have to follow the Turn-A-Round story catalyst and see it take shape.
Kongregate + Jolt Online + Steve Nix hire = a Possible Turn-A-Round story taking shape.
Some Analysts look at these moves and SCOFF..... They think *too little too late!!*
But it isn't too late.... Too Late is sitting around and not doing anything while earnings decline quarter after quarter..year after year....like Block Buster...
Game Stop is making moves into DIGITAL gaming while they are producing RECORD earnings.
They are well ahead of the Digital Scare..... They are turning DIGITAL SCARE into DIGITAL PROFITS...
And Analysts continue to want to sit there and stew about it?
They point out GameStaaaaaaaaaaaqqqqqqqqqqqqqqqqqqqq
Which is a Used Games Online Web company that has gamers trading games with each-other..........and paying shipping fees + online Sales Taxes..
How does a GameStaqqqqqqq Stack up to GameStop that offers the game same day you pay for it and you get a Return Policy if the Disc is damaged and you get Reward Points added and you get ZERO shipping fees?
Then Analysts whine and cry about how GameFly is going to Netflix GameStop cause they allow people to rent games through the Mail??
But why RENT when you can OWN at steep discounted prices at Game Stop?
You can not sell your Video Game on E-Bay if you merely just Rented it..... Only if you bought it.
And do you want to spend an entire weekend with no Video Game cause it doesn't arrive until Monday? Especially when USED Video Games are priced so darn cheap at GameStop?
There's a Growth Story in the Digital World taking shape at Game Stop and all of the *shorts* are missing it. All of the *cry baby investor analysts* are too scared to react while Game Stop isn't the least bit scared of Digital.
Yesterday's earnings release showed how Digital Gaming is a Strength....not a Weakness.