GME GameStop: Downloadable content deals will drive interest to Gamestop stock

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	Josh Warner-Burke
	Baltimore User since Nov 2007	56
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Downloadable content deals will drive interest to Gamestop stock

I've written a number of times about Gamestop, and I 've been wrong in just about every case. So really, don't listen to me. But I just bought some November GME calls with the idea that the corner has been turned in perception with regard to downloadable content.

It's just like Coinstar and streaming, whatever the technology is, the biggest brands will get there. With a successful brand comes money, and money can buy any technology needed.

The news today moving the stock is this:

"Sony Corp. this week said it will partner with GameStopCorp. to sell Playstation Network download content for the Playstation 3 and the PSP via GameStop brick and mortar stores and Gamestop.com."

-http://news.punchjump.com/blog/2010/11/11/gamestop-to-sell-ps3-playstation-network-dlc/

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What People Are Saying...

Josh Warner-Burke said at 11/11/10 3:57 PM Price action was $21.06 0.92 (+4.6%)

http://www.joystiq.com/2010/11/09/gamestop-now-selling-psn-content-in-store...

Josh Warner-Burke said at 11/12/10 9:47 AM Price action was $21.10 0.00 (0.0%)

http://www.joystiq.com/2010/11/11/gamestop-details-a-bright-profitable-futu...

"We see it as additive. It's additive for us. It's additive for Sony, for Microsoft, and it's additive to the publisher. The amount of add-on content now being developed for the big games is just phenomenal. You got a new level coming out for Halo: Reach in December, we have new Call of Duty map packs coming after launch, etc. We look at our ability to sell that to the original consumer -- given that we know who bought the original copy -- to be extremely strong," he explained, referring to his company's ability to track individual customer's purchases via the Power Up Rewards card. And in the coming years, GameStop intends on becoming a much larger player in the digital realm. We expect to have market share of DLC much like we have market share of boxed product," he assured attendees.

Josh Warner-Burke said at 11/15/10 1:13 PM Price action was $20.85 0.02 (+0.1%)

http://online.barrons.com/article/SB500014240529702040760045756165606547591...

We are maintaining our Outperform rating and our 12-month price target of $26, which reflects a multiple of 8.5 times our fiscal 2011 EPS estimate of $3.02.

Josh Warner-Burke said at 11/17/10 9:54 AM Price action was $21.80 0.95 (+4.6%)

CreditSuisse upgrades GME:

Besides our belief that downloading is likely years away, GME is not ignoring new channels of distribution but is investing to lead in all forms of customer interaction.
- http://bit.ly/dlzj6o

Josh Warner-Burke said at 11/17/10 4:41 PM Price action was $21.00 0.15 (+0.7%)

Very enlightening bull case for GME here http://seekingalpha.com/article/237400-gamestop-the-next-blockbuster

Josh Warner-Burke said at 11/19/10 3:42 PM Price action was $20.12 -0.28 (-1.4%)

This Fool article perfectly sums up the hopeless pessimism around GME stock. People will see whatever they want to see.

I am declaring the stock market is not an 'efficient market' it is a dumb market. Dumb Dumb Dumb Dumb

http://www.fool.com/investing/general/2010/11/19/gamestop-cant-catch-a-brea...

Josh Warner-Burke said at 12/15/10 3:56 PM Price action was $21.64 -0.10 (-0.5%)

http://www.fool.com/investing/general/2010/12/15/gamestop-to-save-best-buy-...

Josh Warner-Burke said at 4/13/11 12:41 PM Price action was $24.88 1.08 (+4.5%)

Gamestop: The Netflix of Games? on Forbes
http://blogs.forbes.com/ericsavitz/2011/04/13/gamestop-the-netflix-of-games...

As usual I was way too early with this pick.