Game On!

Some things are more fun than checking company fundamentals and trade trend technicals.

Like sail surfing on the Caribbean, watching a great SciFi movie, playing with your BFF on a Saturday morning, or playing Gran Tourismo 5.

One of my earliest big successes in the market was not with Sony but with the company that sells all our favorite games to us.

GameStop (GME) was chosen this week by Zacks Aggressive Growth as a strong buy. Since Christmas, I've turned away from GameStop and concentrated on China but maybe its time to take a second look. Their earnings release says its up 17%. Like Ikea, GameStop is very selective about where they locate stores like in strip and shopping malls, foot and bicycle accessible. They are also the largest reseller of used games which is important to parents with children as new games can easily drain the pocketbook but used games are still as good as new but at a discount. The sentiment above really isn't as bad as it seems. Trading in your old played out games gives you a a discount on your new one. At the same time it makes it available to others and is not only a cheaper way to play but a bit more green too!


The company sells every popular game on every popular platform. By taking cues from the customer it is able to easily position itself to optimize sales and inventory. Unlike many companies where often no better than 50% of analysts raise their rating, ten out of 11 have raised their numbers on Gamestop. It isn't likely for that many analysts to be wrong all at the same time...er uh, I hope not. Guess I better do the homework, and recheck the fundamentals on my own!