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Author: newsreporter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 217  
Subject: On Fire Date: 3/29/2008 5:57 PM
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GameStop Is On Fire
http://seekingalpha.com/article/70028-gamestop-is-on-fire?source=d_email


GameStop is on fire, plain and simple. It is still in the early stages of its growth cycle. The company has posted a huge average surprise of 33.2% over the past four quarters. Just over the past week, this year's earnings estimates have jumped 17 cents to $2.37 per share.

GameStop Corp. (GME) sells software, hardware, and game accessories for video game systems and personal computers. The company is also the largest reseller of used video games. It currently operates5,264 retail stores across North America and Europe. GameStop makes its stores easily accessible to clients of all age groups by locating its stores within walking or biking distance.

...

The company believes that this cycle will be "deeper, wider, and longer" than any previous period of new console introductions. The company's stellar fourth quarter results were driven by new video games including Activision s Call of Duty 4: Modern Warfare, Rock Band from Electronic Arts, Assassin's Creed by Ubisoft, Nintendo's Super Mario Galaxy, and Activision's Guitar Hero III.

The great thing for GameStop is that it doesn't matter who the winners or losers are in terms of consoles or video game titles, as long as demand for games is strong. Instead of picking the winners, GameStop closely monitors the pulse of the video game world and lets its customers tell them which games to stock in stores.

In addition to the next generation video game cycle, GameStop's store expansion strategy continues to drive sales. GameStop is aggressively opening new stores in favored strip mall locations. These stores offer superior customer service and focus on trade-ins and used game sales. GME's size affords the company many competitive advantages and cost savings that should help drive solid sales growth and profit margin expansion in the years ahead.

GME has posted a huge average surprise of 33.2% over the past four quarters. Just over the past week, this year's earnings estimates have jumped 17 cents to $2.37 per share. Analysts expect a further gain of 23.8% next year. Ten out of 11 analysts raised their numbers.
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