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Is it Really Game Over for GameStop?

SADIF Analytics Assigns Positive Long-Term Outlook Rating to GameStop Corp


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2009-03-25 18:05:15 - SADIF-Investment Analytics SA has applied its StockMarksâ'˘ stock-rating system to GameStop Corp and produced a research report, rating the company's attractiveness to long-term investors.

Mira, Portugal â€' March 25th, 2009 â€' SADIF Investment Analytics SA, today announced the release of a new equity research report covering GameStop Corp (GME). The report utilizes SADIF's powerful StockMarksâ'˘ stock rating system and is required reading for any current or potential GameStop investor.

Report Summary: US video game retailer GameStop Corp. reports fiscal fourth quarter results on March 26th. The company's shares took a hit earlier this month when Amazon Inc announced its intention to enter the used video game market. Used video game products accounted for 25.1% of revenue and 48.2% of GameStop's gross profit in the company's fiscal third quarter results. The news sent GameStop shares tumbling 13% on March 5th. Nevertheless, GameStop CEO Dan DeMatteo doubts

that Amazon's plans will succeed given GameStop's failed attempt to institute a similar mail-in trade-in system several years ago. Shares in GameStop have crashed 50% over the past year, underperforming the S&P 500 by 10% and the Nasdaq index by 15%. GameStop's fiscal third quarter results, announced on November 20th 2008 highlighted the effect of single big-name games on the company's results. GameStop compared its performance to the third quarter of 2007, when Halo 3 was released, the company credited the game with boosting comparable same-store sales by 46.3% during fiscal Q3 2007. With the bulk of the company's profit coming from second-hand games, GameStop may expect to benefit from the recession as consumers select lower-priced second-hand games over the new products. However, when we assess the company as a long-term investment, we should focus on the company's long-term underlying fundamentals. We can analyze the company's fundamentals through the use of the StockMarks framework. GameStop currently has an overall long-term investment-attractiveness rating (Total StockMark or SMT) of 86, rating far above the US market average. This rating places GameStop second among ten of the company's closest US-listed peers, selected on the basis of similarity of business, market positioning factors such as size and share comparisons.

The complete report breaks down the Total StockMark into its three components â€' Business, Management and Price, performing a thorough analysis of GameStop for long-term investors.

A summary of the StockMarksâ'˘ ratings for GameStop is available here:
sadifanalytics.com/stockmarks/company.php?ticker=GME&cod_country ..

The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites, from multiple professional platforms including Reuters Knowledge, TheMarkets.com and Thomson Research or directly from SADIF-Investment Analytics SA at:
sadifanalytics.com/stockmarks/article/hist_article.php?cod_count ..


About SADIF-Investment Analytics SA:
SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. The StockMarksâ'˘ system is based on proven investment principles and is designed to drive long-term shareholder returns.


Antonio Mendes

Author:
Antonio Mendes
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Web: www.sadifanalytics.com
Phone: (+351) 234 322 037

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