GameStop to Buy Electronics Boutique

GameStop to Buy Electronics Boutique


GME, our stock of the week a few weeks ago, is buying Electronics Boutique which has over 2,000 game stores. Game Stop will double the number of stores. GME already negotiates sweet deals for product and should be able to continue to trade games at high margins.

The company will pay a combination of cash and shares. It is a good thing that the company will issue 950 Million Dollars of Senior Bonds to help pay the cash part of the deal. The company is confident that cash flow will easily exceed the funding requirements.

GME, another good selection by Sandra Kupsky. Sandra's recent pick of USG was a home run. The stock was bought because of its excellent value ratios and it jumped 10 points when news of asbestos legislation surfaced again. Kupsky's selections show that if one buys good values, they hold up well in a tough market. We are working to display the portfolio more prominently on the blog.