Friday, December 30, 2011


This retailer deals primarily in games, and is found at malls and strip shopping centers.

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.
Good hunting.

No comments:

Post a Comment