GameStop Corp. (GME)

TurtlePerson2 (37.24) Submitted: 4/03/08 10:17 PM : Start Price: $56.00 GME Score: -12.26

Video games are a huge industry and are going to keep growing at an incredible rate. We're entering the point where parents have grown up playing games meaning that it's now the rich adults instead of poor kids that are buying games. Gamestop makes a great margin on used game sales and a decent margin on new games too.

The only problem I see with Gamestop is that their customer service and policies are terrible. The reason this stock is so successful is because it has bought out most of the competition and it's hard to go into business against it. In the long term, I think that poor customer service and the rise of digital distribution will hurt Gamestop to the point where it will either have to reinvent itself or close, but I'm very bullish on the next year or so.

I expect Gamestop to hit about $70 if a recession comes before Christmas, and $85 if the economy recovers.

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