Sunday, October 09, 2005

Is Gamestop (GME) Ripe For A Buy?

Gamestop (GME) completed its merger with Electronic Boutique this weekend. Gamestop becomes the clear leader in video game retail. With the release of the XBOX 360 on November 22nd, Gamestop will see a significant boost in Q4 earnings. There is already a shortage of XBOX 360 units for Christmas. Microsoft will only be able to produce about 1 million units for North America due to supply issues. This leaves Gamestop to profit by bundling the XBOX 360 system with other items that increases price and profts for Gamestop.

Gamestops bundles range from $800-$4500(includes 42" Dell Plasma TV).

Electronic Boutique (Sold out of their bundles) Sold Out of Bundles

Sam's Club Sold Out

Sold Out

I think you get the picture. Plus 34% of the float is short! I see at least $35 a share by January 1st.


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