GME
GameStop Corp.
Consumer
04/22/2013
Presented
| Date | 04/18/2013 |
| Price | $32.77 |
| Market Cap | $3.86B |
| Ent Value | $3.23B |
| P/E Ratio | 12.5x |
| Book Value | $18.38 |
| Div Yield | 3.4% |
| Shares O/S | 0.00M |
| Ave Daily Vol | 3,070,000 |
| Short Int | 36.57% |
Current
| Price | $21.27 |
| Market Cap | $9.07B |
| GameStop Corp. operates as a multichannel video game retailer. It sells new and pre-owned video game hardware; physical and digital video game software; pre-owned and value video game products; video game accessories, such as controllers, gaming headsets, memory cards, and other add-ons for use with video game hardware and software; and digital products, including downloadable content, network points cards, prepaid digital and online timecards, and digitally downloadable software. The company also sells mobile and consumer electronics, including new smart phones, tablets, headphones, and accessories, as well as pre-owned smart phones, tablets, and MP3 players; personal computer (PC) entertainment software in various genres, including sports, action, strategy, adventure/role playing, and simulation; and strategy guides, magazines, and gaming-related toys. In addition, it operates electronic commerce Websites comprising gamestop.com, ebgames.com.au, ebgames.co.nz, gamestop.ca, gamestop.it, gamestop.es, gamestop.ie, gamestop.de, gamestop.co.uk, and micromania.fr. Further, the company operates kongregate.com, a browser-based game site; Game Informer magazine, a print and digital video game publication; iOS and Android mobile applications; Simply Mac, a certified Apple consumer electronic products reseller; and Spring Mobile, an authorized AT&T reseller operating pre-paid wireless stores under the Cricket Wireless name that offers prepaid services, devices, and accessories. As of January 31, 2015, it operated approximately 6,690 stores primarily under the GameStop, EB Games, and Micromania names in the United States, Australia, Canada, and Europe. The company, formerly known as GSC Holdings Corp., was founded in 1994 and is headquartered in Grapevine, Texas. |
Please note, this idea was updated on 10/29/2013 and can be read here: Long - GameStop corp. (GME) (Update).
Highlights
The video game console replacement cycle happens once every eight years, and the presenter is long shares of GME and bullish on the outlook for the company going into this one. He does not see the introduction of new, digital download-enabled consoles as a risk to GME, which is one piece of the bear story. He disclosed his position is half stock, half call options because the specs for the new X-Box have yet to be announced, and he wants to be 100% certain it will play used games before adding to his position (only the specs of the new Playstation have been released, and it will allow for the play of used games). He highlighted the following additional factors influencing his opinion, and supporting his estimates for the company to earn substantially more than the Street is expecting over the next three years:
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.