September is drawing to a close. What does this signify? Well, one of my favorite times of the year, Halloween, will soon be upon us. Even more than that, holiday shopping is about to begin in earnest. Is your portfolio ready?
I've been checking around for investments in the retail sector. Problem is, so many of them have already had significant run-ups. However, even with these higher stock prices, the sector still might be an interesting one to look at since it's possible that Christmas could turn out okay. A post on DailyFinance discusses a report from the International Council of Shopping Centers, which basically states that numbers from this holiday season should see an improvement over last year's data.
One chain I've been examining is GameStop (NYSE: GME). I already have exposure to video games via Activision Blizzard (NASDAQ: ATVI), but I've been thinking about getting in on shares of GameStop ahead of Christmas. Sony (NYSE: SNE), Microsoft (NASDAQ: MSFT), and Nintendo (OTC: NTDOY) have all enacted price cuts on their respective consoles, so shoppers should be taking home a system or two this season. As well as a bunch of software, both new and used. GameStop, as we all know, specializes in the latter niche.
Besides all that, though, I really have to go back to the business potential for the holiday season. If the markets have been doing anything this year, it's discounting a better fourth quarter. Honestly, I'm skeptical about the upcoming shopping period.
But when it comes to video games, even though the industry has been having its challenges, I believe a company such as GameStop should still experience a little price appreciation. The stock has been strong lately, and I don't see any reason why the momentum should suddenly cease. At the very least, one might get a few bucks from it on a trade. Publishers have some event software coming out (e.g., the next Call of Duty from Activision Blizzard), so traffic to GameStop should be strong.
Always perform your own due diligence before trading. As for me, I'll continue to consider GameStop.
Disclosure: I own Activision Blizzard; positions can change without notice.
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