$22.94 0.06 (+0.26%)
2/13/2012 4:01 PM

GameStop Corp. (NYSE:GME)

CAPS Rating: 2 out of 5

The Company is a retailer of video game products and PC entertainment software.

Recs

4
Player Avatar cosmostein (69.94) Submitted: 4/30/2009 11:20:05 AM : Underperform Start Price: $28.32 GME Score: +70.17

For the very short term I don't see many issues with earnings or profitability with GameStop.
However, the bread and butter of the store level profitability lives and dies with their ability to maintain very high margins on their pre-owned games and consoles (Games are bought at a range between 3-22 dollars and sold for 14.99 - 64.99). Many of the major electronic stores as well as the some of the conventional mall based CD/DVD stores are starting to target the pre-owned game markets by offering either better trade in values or low cost pre-owned games which could in the longer term severely impact in store sales.

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