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Author:

Jester Debunker

Subject:

Off Topic

Date:

03/30/15 at 2:13 PM CDT

 

 

READ: 7

RPLY: 0

0

0

RECS:2

Sentiment:

Neutral

Reply to:

MSG`#2449,`03/30/15
By Tommy Vercetti

 

Re: Found You Guys

Tommy, good to see you, glad you made it. Nsthil knows about this place, he said he may check in. It doesn't appear that anyone has up to date contact info for Buk or Ben Martin though.

Re GME I posted after earnings last week, similar thoughts to yourself really.

marketrap.com/me...rnings

Bull case - huge short interest, 47.257M shares, 43.3% and rising as they buyback. 10x earnings is fair IMO, and we could easily see repeated short squeezes. Virtual reality is on the horizon which means expensive hardware to sell, albeit to a likely niche market, but it could bring hype.

Bear case - I still believe they're doomed long term. In the medium term, the stock could be 10x earnings a year from now and still be $38, so the only benefit to a shareholder is dividend, which makes it a Sell relative to other places to put money. That's not sexy. Neither is transforming into the new Radio Shack.

I think the best way to play it this year is selling options premiums for the volatility. I'm assuming it'll spend a lot of time in the $35-$45 range. In the months of dividends you could even buy the stock and sell covered calls. You could offset against a potential market shock causing a crash (because let's face it, if the market tanks GME will likely be very weak) by buying otm puts for 10c say.

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