Message Font: Serif | Sans-Serif
No. of Recommendations: 4
"Strong financials aside, doesn't basic logic suggest the depth and outlook of the R-word (you know, the one that isn't here) will only continue to negatively affect consumer confidence and spending? Especially among teens and families who have less disposable income on entertainment?"

As a GME shareholder and avid video game player, I'll share my perspective and I feel it is unemotional. As you mention, GME has strong financials and despite the apparent recession, GME continues to look strong especially for the long term. The video game industry continues to grow and teens who may have less disposable income will prefer to buy a game that will provide 20+ hours of entertainment than go to the movies for a 2 hour experience. Box office sales have already seen declines over the last few years.

"Hold? Lock in profit and sit on sidelines w/ cash? Free up cash by selling something else and double down on GME b/c a great buy opportunity?"

I'm personally holding. If I had a major laggard in my portfolio that I was ready to cut loose, I'd consider selling and buying more GME. I think the market is beating up GME without factual merit. This appears to be a great value play to me.

In the end, your goals and risk tolerance should dictate your decision. I think video games can be a reasonable escape from rough times for many people and teens aren't the only ones who play games anymore. I'm 30 and the father of two toddlers, my escape each night is a little Xbox 360, Wii or a computer game...
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.