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Made a trade today.
Sold out of my GPC position for a 21% gain.
Bought GME at $38.49.
GPC appears moderately overvalued according to FAST Graphs with a 19.9 PE vs. a 10 year average PE of 16.6.
GME recently announced a 20% increase to the dividend, which boosted the payout to $1.32 and a yield of 3.4%. The company is trading at a PE of just 11.6, has zero debt, and $650M in cash with a market cap of just $4.45B. Also generates significant cash flow and has authorized a stock buyback worth about 10% of the market cap.
Analysts project earnings to increase by greater than 10% annually over the next 5 years, which is great considering its current low valuation.
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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?
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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I took a quick look at GME. Not interested. Too many questions that need answers.
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I haven't played video games since I majored in Madden 93 back in college. I was wondering if you feel like gamestop's business model will be around in ten years. I feel like gaming will shift to online subscriptions but maybe they are in that market as well. This could be the replacement for Hasbro that I have been looking for.
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My GameStop trade is going well so far. Up nearly 14% since I bought on March 13th. Going to need to figure out what my price target is for the shares as I don't know if this is a hold forever type stock. If it were to continue pushing back into the $50's I will probably have a decision to make.
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Had some new money hit the account so I put in a buy on CVX today at $119.
I expect an announced increase to the dividend rate in the next couple of weeks which should provide a yield on the buy of around 3.7%. This will double my position and bring it up to an equal weight in the portfolio.
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(04-09-2014, 01:47 PM)EricL Wrote: Had some new money hit the account so I put in a buy on CVX today at $119.
I liked it better around the $110 range but not a bad price to pay. Then again, sometimes I can be a piggie.
I keep thinking I ought to lighten up a little as it gets back in the $120's but I just can't seem to find the gumption to ditch a perfectly good dividend that's not going to go anywhere but up. Wondering if it will ever get back down to the low 60's again so I can rent another truck to back up.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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Yeah, I'd have liked it better at $109 too, but I'm not going to complain too much getting a blue chip like CVX at a PE under 11, especially right before a dividend increase.
