ruby, as I have said before I share your views on the possible "overvaluation" of stocks which have an Internet flavor. However, I have to admit that I think your last post was unfair to GTR. Games Trader has a legitimate business which is growing and profitable. Actually they remind me of Softkey in its early days. Great distribution of retail products at a low cost through "un-traditional" channels. And if Yorkton's forecasts are right and GTR earns $0.22 this year than I believe it is worth way more than $3.00.
Now a comment on the Internet flavor. I believe there are at least three types of Internet companies: 1) the pure plays (Amazon, E-Bay, etc), 2) the wannabees (the list is too long to post here), and 3) the companies which have an existing successful business and are intending to use the Internet to increase the distribution of their products (Dell, Chapters, Barnes & Noble, etc).
Well I happen to think that GTR belongs in the third category. By saying that I am not for a second suggesting that GTR is the next Dell. What I am saying is that GTR seems to be developing a legitimate Internet strategy to increase the results of a legitimate business.
Do you have any idea how large the video game business is in North America? If you don't I would suggest that you do some research. Otherwise, sell the stock and move on to the next one.
I do not mean to insult you but you seem to be unduly negative about a company about which you seem to know little about. |
