In the following video, Fool.com analyst Blake Bos discusses whether to buy or sell GameStop (GME -0.47%). He says the company is ready for another console life cycle to begin and help boost the sale of its high-margin used games and other business lines. He also argues that the gaming community isn't completely ready for online-only consoles, which works in the company's favor, but that it should begin preparing for the inevitable shift toward exclusively digital downloads only. For now, he says, the company is incredibly cheap in terms of free cash flow, and P/E ratio, plus it has no debt, so it appears that any fears that the business will soon run into financial troubles are overblown.
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Has this pre-owned game retailer gone as far as it can go?
Blake Bos owns shares of Microsoft. The Motley Fool owns shares of GameStop and Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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