GameStop Corp. (NYSE:GME)

http://www.penny-arcade.com/comic/2007/03/30/

I think it's time to jump into this one (for a bit)

games are hot, used games are even hotter when budgets are tight

Profile
GameStop Corp.
625 Westport Parkway
Grapevine, TX 76051
Phone: 817-424-2000
Fax: 817-424-2062
Web Site: www.gamestop.com

DETAILS
Index Membership: S&P 500
S&P 1500 Super Comp
Sector: Services
Industry: Electronics Stores
Employees (last reported count): 12,000

BUSINESS SUMMARY
GameStop Corp. operates as a retailer of video game products and personal computer (PC) entertainment software. It sells new and used video game hardware and software, and related accessories and other merchandise. The company also offers video game accessories that include controllers, memory cards, and other add-ons; PC entertainment accessories, such as joysticks and mice; and strategy guides and magazines, as well as trading cards. In addition, it operates electronic commerce Web sites under the names gamestop.com and ebgames.com, as well as publishes Game Informer, a multi-platform video game magazine. As of October 24, 2007, GameStop operated 5,000 stores in the United States and in 16 countries worldwide primarily under the names of GameStop and EB Games. The company was founded in 1994 and is headquartered in Grapevine, Texas.

***All above information from YAHOO FINANCE***

As disposable income has greatly reduced, many more people are staying in with the Wii, PS3, or Xbox 360. As last holiday indicated, game systems are in great demand and those game systems are mostly useless without games. GameStop has capitalized so well on the used game market, they are starting to anger the new game publishers.

Video games is the new media, one bear mentioned the lost/crackdown of reselling. Sure they can counter it but GME will still make on selling a brand new game to that consumer. GME has a well built name in the gaming industry and commands a dominate share in the video game selling market which is growing at a rapid past and doesn't show any signs of slowing down.

Who doesn't like a bargaim? In stocks and games.

All the hype about Digital Downloads doesn't take into account Used games and for the non-hard core casual gamer, a "bargain" priced game is well, a bargain.

Most Americans want to hold something tangible when they buy it and anyone who's replaced an XBOX 360 Hard Drive will tell you spending three days downloading games you already "owned" is a beating!

With the Wii Fit and other casual games, GameStop is growing the market for their products and constantly experimenting to find new revenue streams. This is a company with solid, conservative leadership who have built the better mousetrap!

I've been a gamer my whole life, so I know games. GameStop isn't the cheapest for new games, and it's not the cheapest for used games. You could sell your games on eBay for a higher price. But as a matter of practicality, convenience and selection, they do not have an equal.

No long term debt, almost all their money comes from operations, relatively small P/E ratio and an now an unprecedented interest in video games thanks to successful systems like the Wii (for everyone) and the Xbox 360 leads to a successful company in my eyes.

My only worry is a shift to digital distribution later down the road which could lead to a reduction in the trading of used games and purchase of new games at the retail level. That's more of a very long term issue though. Over the next two to four years, I see Gamestop doing very well in this tough economy, especially when compared to most other retail.

This stock is undervalued and will continue to see huge growth over the next few years. Digital distribution is further away than most realize.

Looking at stronger than expected earnings coming up.

People would rather pay the same amount for a used game than a new DVD, and will constantly go back to get great deals on used games once rich kids return their slightly used games they got for Christmas to get something different.

GameStop is set to take off!!! No matter what the economy looks like people still want to be entertained. And unlike big box stores that sell a little bit of everything, GameStop is your one stop shop. And you can trade in old games for new games, buy used games and you can actually try them out for a week and if you don't like it, you can return it. Where else can you get a deal like that???

I have liked GameStop for 3 years now. However, I bought in at much higher levels. Even though they have very little competition in the new and used gaming hardware/software business, the downturning economy will force me to hold onto this stock for 2 to 3 years simply to break even. I am down 50% but if YOU bought in here, you could make 100% in the same time period it takes me to break even. I was hasty but you could look like a genius. Check them out !

when the retail sales start to pick back up, this will be one of the first...plus more people staying home for entertainment ie. video games..this is a buy.

Solid Financials, but more importantley is a cheap way to purchase hours of entertainment.

With economical slow down and personal financial fears, some of the items I've been noticing with the younger generation even some of my people is to help save money is to find entertainment at the home. I catch myself spending more time getting lost in a game compared to try to get out of the house. GameStop has a great profile in which you can trade in games for discounts on brand new games. You can't do that at Wal-Mart or Target. It's a good system for those who just want to move on to a new game without dropping $50.00 for a PS3/XBox 360 disc.

This Stock Is Under Valued

The video game industry is a juggernaut lately, like digiital crack the lower - upper middle class will have no problem dishing out for their videogame fix.