"GME- Bullish.... Insider buying.... I am guessing good sales of Uncharted 2,
GME held up pretty well today! I will be watching how it trades tomorrow and if there is no sell off, I might buy some Dec 25 calls. I think it will fill the gap at 26.60-28 before X-mas.
I checked GME's performance during the week of Thanksgiving from 2005-2008 and it went up 7-10%.
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I have 25.60-25.80 as the first target and it is a resistance zone too. 25.80 is about 5% from current level and if it goes to that level by Nov 26th, the Dec 26 calls which are currently trading at 0.55 will be at 1.10. So we are looking at a 100% return here ;-)
I think it will consolidate when it reaches the 25.60 area and then break above it during the X-mas rally. My target on GME by end of year is 28.
It issued a 2009 EPS Guidance in the range of $2.45 to $2.63. So it is currently trading at a P/E of 10 (using lower end of EPS estimate)
23.70 will be my STOP LOSS. Tomorrow's action should tell us....we will see how it behaves if the market gaps down at the open. I doubt it will break below 23.70-24.0 and if it does, the next stop will be 22.0-22.3. The best entry point would be at 22.0-22.30 for a ride to 25.60-25.80 IMHO
