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jdelfino

jdelfino
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  • John Bird uncovers fraud at China Sky One (CSKI), shedding light onto the shady $20B Chinese reverse merger market, as well as the also suspect community of short sellers attempting to profit off of it. "(It's) a rational position for an investor to start with, that every one of these Chinese reverse mergers is a fraud," says Bird.  [View news story]
    3 CFO's in one year should raise a few red flags.
    Jan 18 12:49 PM | 1 Like Like |Link to Comment
  • Aeropostale: Low Risk Stock With Big Upside [View article]
    I'm not going to dispute the numbers, but have you, or your fashion consultant Ms. Klein looked at their product line? With Abercrombie starting an aggressive discounting, which worked well this holiday season, I only see ARO losing market share to a more fashionable, dependable, and overall superior brand. In addition, I feel the "big three" teen retailers which you speak of are slowly becoming outdated. With more accessible and appealing brands coming into the market, it is becoming increasingly crowded. This, however, could help your theory of ARO as a takeover target.
    Jan 18 10:12 AM | Likes Like |Link to Comment
  • Verizon's iPhone: Here Comes the Fallout [View article]
    This seems to come down to how the Verizon network responds to the surge in data use. I agree with Larry, this could help AT&T, if the Verizon network responds negatively. The only real winner here is Apple, which will undoubtedly see a surge in iPhone orders. Godspeed to those first with the Verizon iPhone, you are the test subjects.
    Jan 12 04:27 PM | Likes Like |Link to Comment
  • Whitney Tilson Covers GameStop Short [View article]
    Disrupting dynamics by selling used games, how so? The beauty of the videogame industry is the buying and selling of used games. As for the producer, there is little that can be done, unless you rely on baseless, ambiguous, and vague court ruling like the recent ruling in California, which will not hold. As for Best Buy and Amazon, neither have been able to steal and substantial marketshare from Gamestop. I see the point about Amazon, however, I believe Best Buy will slowly move away from distribution of media, and solely become the leading outlet for TV's, other electronics, and household appliances.

    Moving again to producers, what have we learned from music and film producers...they are extremely slow at adapting to distribution of their media. There would be no iTunes or Netflix if music and film producers collaborated, compromised, and intelligently modified their distribution of media. Unless there is a catastrophic change in producer mindset, I dont see videogame producers creating, managing, and profiting from a producer owned video marketplace.

    As for value of the stock. Yes, it has been continuously assaulted. I, like Lazard and Credit Suisse, both of which reiterated "Buy" ratings, believe the stock will top out at around $26-$28. Never will Gamestop be a $60 stock again. Europe is weak and volatile market for specialized retail. I am not surprised you witnessed slow stores. However, something which has not been discussed is their growth into other emerging markets.

    Like you, I am skeptical, but I remain hopeful that Gamestop will trade to the upside. Moreover, I think we both have key questions for Gamestop, which, like you, I am yearning for an answer.
    Jan 6 06:19 PM | 1 Like Like |Link to Comment
  • Whitney Tilson Covers GameStop Short [View article]
    Saffar12,

    I question your reasoning behind your speculation that stock is near doom. Any notion of bankruptcy is absolutely ridiculous. While the stock has been beatdown today, this can more correctly be attributed to profit taking, as the stock has risen 13% in the past month. This is a specialty retail stock, and while it is extremely important to analyze numbers, when looking at GME it is more appropriate to analyze consumer behavior, and the channels in which consumers purchase their videogames. Year over year, sales increased 5.4 percent, and, keeping with the growing trend to shop online, Gamestop.com sales grew 100 percent. Furthermore, any attempts by larger retailers to take marketshare failed miserably. Both Best Buy and Wal-Mart will stop all dealings in the used videogame space, and their is no evidence to suggest Amazon has usurped business. The popular sentiment among investors and analysts is to be highly skeptical of brick-and-mortal retail. This is no better exemplified than in the case of Best Buy. However, while I do not dispute that consumption of videogames will change in the coming decade, it certainly will not spell the end for Gamestop. Gamer will still be driven to the store and online for games and hardware. Until Call of Duty 4 can be downloaded from an online marketplace, Gamestop will continue to be a fixture in video game retailing. While downloading videogames might not seem far fetched, the capacity to do so simply is not available to many consumers. While streaming music and movies is possible for many, the required broadband internet speeds to download videogames is much heavier. Low debt levels arent keeping Gamestop from bankruptcy. They will only help Gamestop adapt to the changing marketplace, and build upon their success in the next stage of videogame consumption.
    Jan 6 03:38 PM | 2 Likes Like |Link to Comment
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