GameStop Corp. (GME)

Given that the company continues to perform and execute, estimated earnings growth remain strong the company seems to be under valued based on their PE and PEG. The company is facing more competition from Best Buy and Amazon in the used game market while game manufacturers work on new ways to distribute product. I feel that their is upside $30 to $36 in the next 12 months based on a PE of 12 to 15 and EPS of roughly $2.40 a share.

I have a 5 year time frame on this stock. This company will declare bankruptcy or be a stock under 5 dollars in 5 years time. Or it might be bought out by a bigger company like Amazon, Walmart, or Best Buy when its under 10 dollars.

I know this will not be a popular pick for now, but in a few years you'll know where I am coming from. I think Sony, PS3, and Nintendo are sick and tired of Gamestop reselling their games. So what will they do about it? Their going to put them as downloads on their next generation consoles. They are trying it now with their current generation and it will just literally tear Gamestop apart.

Gamestop stores are cluttered and some of the stores feel like your living in the 1970's. Their staff is full of teenagers that couldnt give a crap about the customers. Last time I saw teenagers running an entire company was a little electronic store called Circuit City.

People dont go to Gamestop to buy new games, they go to buy used games. Once Best Buy and Amazon start doing it, its church for Gamestop. And those companies have better relationships with game companies. You never know if they'll work hand in hand and put Gamestop in the cold.

Finally, I think Gamestop stand alone stores will be the downfall. No one wants to get out of their car and go to a place just to look for games. They want to get out and browse games, cameras, music, dvds, etc. Just like Walmart and their grocery stores, we as consumers want a one stop shop for everything. I think the stores inside the mall last for awhile...but once Gamestop gets in trouble finacally in the next few years, the stand alone stores will be the first to go. Plus, too much murder and crime with those stand alone stores. It seems every week someone is dying in a Gamestop store.