Thursday, February 25, 2010
GameStop is On Sale
GameStop shares have dropped 10% in the last month, 8% just today on a couple downgrades and the departure of their CFO. Both downgrades include analysis showing GameStop is poised for their best profit year ever, but both analysts believe the packaged video game market will disappear long term. I'm not one to bet against a company that is printing cash. Short sellers are piling on trying to make a quick dollar, but the higher they push that short-ratio the harder it will be for them to unwind their positions without a big bounce. In the meantime, longs like me are taking a beating.
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