In the following video, Fool.com analyst Blake Bos discusses whether to buy or sell GameStop (GME 0.98%). 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.
Has this pre-owned game retailer gone as far as it can go?
About the Author
A home grown Kansan and largely self taught investor. I wouldn't classify myself by any particular investing style, just opportunistic. My dream investment would have a greater than 10% free cash flow return on enterprise value and be growing at above industry average rates. Some of my favorite industries to watch right now are: alternative energy, manufacturing, agriculture, infrastructure, and media content production companies. Follow me on any of the social media websites below for the most important 3D printing industry developments and other great stories.