Pachter gets one right; GameStop stock worth buying
When video game analysts are mentioned, most of us who closely follow game news think of Michael Pachter. Like any analyst, their predictions aren't perfect. In fact, many abide by the 51% rule; if you get at least 51% of your predictions right, you're a good analyst.
Back in November, Pachter predicted GameStop (GME) to ride a wave of consumer spending on video games. GameStop has released some information proving that buy a good one. GameStop has increased its already strong revenue outlook by $50 million and its Q4 earnings per share from $1.53-$1.59 to $1.58-$1.60.
On top of other interesting sales promotions, GameStop certainly enjoyed the console launches and top-selling games like Gears of War immensely. GameStop is still looking like a strong buy with the strong Xbox 360, PS3 and Wii lineups for 2007 along with continuing PS2 support (though not everyone is in consensus on this). Since we're going to make some money off this one, we're going to forgive Pachter for some of his missed predictions.
Reader Comments (Page 1 of 1)
bazald @ Jan 4th 2007 7:59PM
I can believe that Gamestop is worth buying - just like any over-sized company that shows no regard for the consumer. I miss Funcoland so much...
Pixelantes Anonymous @ Jan 4th 2007 9:01PM
Oh. My. God.
He predicted a company operating in an industry that receives something like 75% of all their yearly revenue during the holiday shopping season would get a boost from the increased consumer spending. Captain Obvious rescues the world, again!
Pretzel @ Jan 5th 2007 3:10AM
Jim Cramer said to buy gamestop as well.
J-bot @ Jan 5th 2007 3:29AM
I hate GameStop. . . Every time I go in there they are always trying to get me to pre-order this, or pre-order that. And they talk to you like they're gaming overlords or something. I prefer getting games at wal-mart or target, where no one is going to hassle me.
GrenadesAndHam @ Jan 5th 2007 5:58PM
You probably want to put a disclaimer at the end of the article, stating that you are not recommending a purchase of stock. It's cool to quote an Analyst, but when you state that you believe the stock is still a strong buy, on a public forum, it can be construed as a recommendation to buy the stock. That could land you in trouble with the SEC if you aren't careful.