Historically, tumultuous times offer some of the best opportunities to buy stocks, and the market's recent mess surely qualifies. There are very few companies that are protected or flourishing today, but many investors think video game seller GameStop
In our Motley Fool CAPS community, nearly 96% of the 3,176 investors rating the company are bullish, so there's no shortage of reasons why GameStop will thrive, three of which I've highlighted below.
But here at the Motley Fool, we're all for looking at both the good and bad sides of an investment, so in this article, I've highlighted three arguments for owning GameStop today. Then you can read the cons and even weigh in with your own comments below or rate GameStop yourself in CAPS.
1. Used game leader: Although other companies are struggling through the recession, GameStop grew its used game sales by 32% in its first quarter, which make up about half of its profit due to higher profit margins than new games. While companies such as Toys "R" Us and Wal-Mart
2. Digital market: Like Netflix's
3. Strong financials: Many CAPS members like GameStop's conservative debt load and ability to generate cash. The company is looking to open 400 new stores this year, invest $170 million in capital improvements, and still expects to pull in more than $500 million in free cash flow. And though some game makers show sales lagging, some of the year's bigger blockbuster games from Activision Blizzard
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Fool contributor Dave Mock weighs the pros and cons of banana splits too, but always ends up buying. He owns no shares of companies mentioned here. The Fool's disclosure policyis laying low since being caught on camera getting a little too raucous at the last home ball game.