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As positioning for this year's best selling video game platform is gearing up, who will be the winner and should you invest in that company? We don’t think it's that simple and this week's Bullish pick is a way to play that industry without buying Sony, Microsoft or even the only profitable one, Nintendo. Our Bearish pick is once again a stock that has been on fire since March, has serious financial questions and is dependent on consumer confidence and their disposable income. |
GameStop (GME) - It’s been almost exactly a year since we first recommended GameStop, and although the company has fallen hard since (yet to fully recover), we believe this is a good company that benefits anytime Sony, Microsoft or Nintendo energize the video game market. That is exactly what is going on right now. Sony slashed its Playstation 3 price by $100 in preparation for the upcoming holiday season, we expect the other two platform makers to follow with similar promotions. All of which mean sales of games and accessories will increase for GameStop.
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Las Vegas Sands Corp. (LVS) - Back in March there was a stay away from Vegas Casino movement, as the U.S. economy has backed off the brink and in a recovery mode, Casino stocks have been recovering, Las Vegas Sands has more than quadrupled. We understand there needed to be a correction on the overselling, but even investors bullish on this stock think it's due for a drop after such a drastic recovery.
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