Bought shares of GME today at $22.68 after noticing a huge sell off yesterday on this stock after their fairly dismal earnings report. Yesterday’s sell off resulted to a 15% drop from the day before. Now this one does not have trends just yet but I’m just buying it because it is already at descent value and all the bad news has already been released. Stop loss will be place at $21.50.
Fundamentals
- Gamestop reported revenue of $1.98 billion vs. estimates of $1.99 billion
- Comp-store sales fell 1.5% vs. guidance of 0-2% growth.
- Company expects Q2 comp-store sales to go down by –8% to –11%
- Earnings of 28c – 33c, while consensus was at 40c
- Game stop lowered comp guidance to a range of 0-2% for fiscal 2009 down from an expected 4% to 6% growth.
- But EPS is still maintained at 18% to 22% growth or $2.83 - $2.93.
- Used games sales were the largest bright spot, with sales coming in $549 million, up 32% YoY. An acceleration from 19% and 31% over the past two quarters.
- Gross Margin was 27.4% vs. 26.0% estimates.
- Used game gross margin was 48.1%
