(03-12-2014, 06:46 PM)Dividend Watcher Wrote: Eric, that sounds like an interesting company. It's been around for quite a while but it was never on my radar. I guess because, as an old fart, I automatically dismissed any gaming company.
What do you think their secret is that didn't cause them to implode like many other game retailers?
I don't know what their secret sauce is other than the trade in program good for cash towards new games/systems. Obviously the market has been doubting them for some time as its been a volatile stock despite earnings and cash flow growing at a steady clip for the last decade.
The share count has been cut by about 30% since 2010 and is projected to be cut further with current buyback program. They generate huge cash flows and with no debt can return that to shareholders, which they are doing with the recent established dividend and further buybacks.
I would call this as much a capital gains play as a long term buy and hold play. The stock is roughly 50% off of its 52 week high and yields 3.4%. Trading at a PE under 12, I think there is some safety and potential for upside.
I guess stocks like this are what makes a market as there are plenty of investors who don't like it.
