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GameStop Corp Stock Report (GME)
GME has sustained double digit earnings growth since 2004 with a strong correlation in the stock performance. The recession of 2008 has resulted in a disconnect between GME’s earnings curve and its stock price. This indicates an opportunity to buy into GME while its earnings power remains unrecognized by the market. Chief Financial Officer David Carlson has bought in excess of $1 million worth of GME stock. This is an indication that insiders inside the company are bullish. GME is valued at $35.73 for FY2010. With a current price of $22.86, GME is 56% undervalued for the fiscal year. GME’s PE indicates the company is cheap relative to its competitors. Quarterly revenue growth is above the industry average. Gross and operating margins are also above GME’s leading competitors.
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-The time to buy is when there's blood in the streets.
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