Why should you short this?
- Following the Peter Lynch philosophy, I checked a few stores out around the holiday. Two days before Christmas, one of the strip stores was empty. Really empty. Two days after Christmas, when the mall was packed, there were a few people in this store, checking out the titles. Very little buying going on. When Christmas sales are reported, this store may be very light.
- There are a lot of other options for buying games. Amazon, WalMart, Target. Yes, it's nice to be able to choose from a lot of options, but that's available on-line.
- The stock isn't terribly overpriced, from a valuation perspective. But, it's not really cheap either.
- No dividend to worry about.
- It's on the list of most shorted stocks, so there are a lot of people who think this way. Just watch out for the regular short squeeze.
