The simplest cash I ever made was a $100 dollars from a sweepstakes on a box of Cap'n Crunch cereal. I was only 10 years old. The check showed up adorned with a colorful picture of the Cap'n. Eventually she gave in and drove me to the bank. Probably more to shut me up than actually believing it was real.
I walked out $100 richer.
With $100 burning a hole in my pocket, I had to have a Nintendo game system. It definitely was a great purchase.
The concepts are the same. Games take you to new worlds where you are a hero or villain... depending on what suits you.
It's not just youngsters turning to Nintendo games for entertainment. The global economy is heading into a prolonged recession. Rising unemployment, home values tanking, and stock portfolios... All of this bad news makes me want to head for a new world. But since commercial space flight is still a few years away, I'll select a Nintendo game to take me there today.
Why? video games. Why? Playstation games offer days of entertainment.
Did you know video games sales and revenues grew in past recessions?
We're already seeing the crunch in consumer spending hurt retailers. It's bad news for those selling new game systems. But the 3 major Nintendo game makers all rolled out new systems in the past few years - Nintendo's Wii, Microsoft's X-Box 360, and Sony's Playstation 3.
There's a computer game system in 41% of Yankee homes.
Video games are fully integrated into cultures around the world. All of these gamers are trying to work out where they'll get the maximum bang for their entertainment buck.
Their income are growing at just about 35%.
Here's their secret weapon...
Then the store turns around and sells it at a discount to the most recent version of the same game. Some used games sell for as much as $50 (now that's a profit).
Used games are a huge and growing part of their business. In fact, they have the of their business.
GameStop (GME) is the world's largest video game retailer. With over 5,557 stores in 17 countries (they just added an 18th computer game retailer. with a purchase of France's largest seventeen states ( they are the biggest by far.
Their secret weapon drives 90% profit margins on used games.
Used are the cheapest way to pick up a Christmas present for the gamer on your list. Add in a few blockbuster used games.
sales have weathered this recession well. But take a look at the stock price and you'll see it's down about 32%. This stock's been unfairly lumped in with all consumer discretionary stocks.
If they meet current estimates, look for a quick bounce back from its recent lows.
If you can handle some short-term volatility, Gamestop should make a great rally at the end of this year and the beginning of '09. Longer term I see this stock retesting its 52 week high of over $63.
I walked out $100 richer.
With $100 burning a hole in my pocket, I had to have a Nintendo game system. It definitely was a great purchase.
The concepts are the same. Games take you to new worlds where you are a hero or villain... depending on what suits you.
It's not just youngsters turning to Nintendo games for entertainment. The global economy is heading into a prolonged recession. Rising unemployment, home values tanking, and stock portfolios... All of this bad news makes me want to head for a new world. But since commercial space flight is still a few years away, I'll select a Nintendo game to take me there today.
Why? video games. Why? Playstation games offer days of entertainment.
Did you know video games sales and revenues grew in past recessions?
We're already seeing the crunch in consumer spending hurt retailers. It's bad news for those selling new game systems. But the 3 major Nintendo game makers all rolled out new systems in the past few years - Nintendo's Wii, Microsoft's X-Box 360, and Sony's Playstation 3.
There's a computer game system in 41% of Yankee homes.
Video games are fully integrated into cultures around the world. All of these gamers are trying to work out where they'll get the maximum bang for their entertainment buck.
Their income are growing at just about 35%.
Here's their secret weapon...
Then the store turns around and sells it at a discount to the most recent version of the same game. Some used games sell for as much as $50 (now that's a profit).
Used games are a huge and growing part of their business. In fact, they have the of their business.
GameStop (GME) is the world's largest video game retailer. With over 5,557 stores in 17 countries (they just added an 18th computer game retailer. with a purchase of France's largest seventeen states ( they are the biggest by far.
Their secret weapon drives 90% profit margins on used games.
Used are the cheapest way to pick up a Christmas present for the gamer on your list. Add in a few blockbuster used games.
sales have weathered this recession well. But take a look at the stock price and you'll see it's down about 32%. This stock's been unfairly lumped in with all consumer discretionary stocks.
If they meet current estimates, look for a quick bounce back from its recent lows.
If you can handle some short-term volatility, Gamestop should make a great rally at the end of this year and the beginning of '09. Longer term I see this stock retesting its 52 week high of over $63.
