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Gamestop Corp. - GME - close: 37.80 chg: +1.53 stop: 34.99

Company Description:
Headquartered in Grapevine, TX, GameStop Corp. is one of the world's largest video game and entertainment software retailers. The combined company operates over 4,200 retail stores throughout the United States, Australia, Canada, Denmark, Finland, Germany, Italy, Ireland, New Zealand, Norway, Puerto Rico, Spain, Sweden, Switzerland and the United Kingdom. The company also owns commerce-enabled Web properties, GameStop.com and ebgames.com, and Game Informer magazine, a leading video and computer game publication. GameStop Corp. sells the most popular new software, hardware and game accessories for the PC and next generation video game systems from Sony, Nintendo, and Microsoft. In addition, the company sells computer and video game magazines and strategy guides, action figures, and other related merchandise. (source: company press release or website)

Why We Like It:
GME is a new play for the aggressive crowd. The company's earnings report is less than two weeks away on November 29th and we do not plan on holding over the announcement. While that's not much time the stock could see a lot of action between now and then. Microsoft's Xbox 360 launches tonight at midnight and will create a lot of press regarding the video game and this could rub off on shares of GME, a video game retailer. Let's not forget that Black Friday is coming, the Friday after Thanksgiving, which is traditionally one of the biggest shopping days of the year. Bulls might push retailers up ahead of Black Friday. More importantly GME is a huge target for a short squeeze. The most recent data puts short interest in the stock at more than 82% of its 51.8 million shares outstanding. We are going to suggest a trigger at $38.05 to open the play. More conservative traders who still want to play this might want to use a trigger over the September high at 38.41. We're going to target a move into the $42.00-42.50 range. We plan to exit on the afternoon/closing bell for Monday, November 28th to avoid the company's earnings report.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/29/05 (confirmed)
Average Daily Volume: 1.1 million
 

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