Gamestop (gme) Stock Research
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Company Description: GameStop Corp. (GameStop) is a retailer of new and used video game products (including hardware, software, and accessories) and personal computer (PC) entertainment products, primarily under the names GameStop and EB Games. The company operates in four key localities: Canada, Australia, Europe, and the United States, which compromises most of its business (as of 2008), as well as maintaining two e-commerce websites, www.gamestop.com and www.ebgames.com, and publishing a video game magazine called Game Informer, which has almost 3 million subscribers. As of 2008, it owned and operated 5,264 stores. meow Update
Discretionary Industry Analysis: The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Discretionary Trading Strategy: The consumer discretionary industry tends to be very sensitive to economic cycles. Look for undervalued discretionary investments during economic recessions when stock prices are low and sell discretionary investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase consumer discretionary investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Industry Sub Sector: . Gamestop is a dominant industry leader due to its personnel, experience and financial strengths. Industry leaders are difficult to compete against, which decreases business and investor risks. The market is quickly expanding. This lowers the threat of direct competition and increases Gamestop's profits.
Market Challenges: Opportunities: Solutions:
Gamestop's business strategy is to keep things simple. Clearly-defined strategies lower business risks by staying within their areas of expertise. Gamestop's strategy is to continuously improve. This helps to fend against competitive threats and increases shareholder returns.
Strategy: Gamestop has a narrow focus that serves a particular customer niche with either a unique product or with a low cost advantage over competitors. (read more). Competitive Advantages:
Gamestop has consistent operating results. This lowers the risk that Gamestop will suddenly have difficulty and it increases investor confidence in the value they place on each share.
Current Revenue Sources: Future Revenue Sources: