Since hitting a mid-day high of 44 on July 10, shares stalled and fell to a mid-day low of $37.55 on Friday. Why? The no-show of Take-Two's giant seller, Grand Theft Auto, for the coming holiday season.
Today, shares are up nearly 6% to $42.94. The catalyst? It could be today's announcement of Monday Night Madness, a promotion that gives stores a chance to host parties on August 13, the release day for Madden NFL '08. That's a catalyst? Perhaps. It's definitely a quick response to the GTA bad news. Maybe the driver, no pun intended, was just today's announcement about the date for Q2 earnings.
I like Gamestop, though my video-game playing days are long behind me. The only game I play is Madden, and that's only when I'm hanging with my nephew. The Wii has filtered into my consciousness, though, and might be a buy for me come Christmas time. When the influx of new games for the Wii hits the shelves at Gamestop, longs will be happier than ever. So will I, a Nintendo bull.
Gamestop's reliance on game makers is a bit unnerving, so I'll stay on the sideline and focus on companies that don't have bricks and mortar.
Pupule Paul is long NTDOY.PK and has no position in GME.
No comments:
Post a Comment