GameStop Shares Thrive Despite Short Interest (GME)

Submitted by theStockMasters... on Fri, 11/20/2009 - 19:07

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Financial News

GameStop (NYSE:GME) shares have been on a tear since Thursday, now up 5.6% in two trading sessions.
The Street was pleased GameStop's Q3 earnings call but as the share price rises the short float is also alive.

GameStop Corp. (NYSE:GME) posted Q3 EPS of $0.32 yesterday beating the Street by $0.02 a share. Their revenue was released at $1.84B, which is +8.2% from the previous quarter and slightly up from Q3 2008 of $1.73B. The company expects that "Call of Duty: Modern Warfare 2" will serve be the bulk of holiday game sales.

Despite the fanfare, GameStop's short base (percentage of shares outstanding on loan) has continued on a steady climb over the past 3 months and is currently at 13% to 17%(depending on what site you check), representing 38% of the total shares available for borrowing.

Short squeeze or not? You make the call. With the holiday shopping season approaching GME is an intriguing trade.

Gamestop Corp	$ 25.27
GME	0.77

Short Interest (Shares Short)	20,368,000
Days To Cover (Short Interest Ratio)	3.5
Short Percent of Float	13.26 %
Short Interest - Prior	18,841,600
Short % Increase / Decrease	8.10 %
Short Squeeze Ranking™	9

% From 52-Wk High ($ 32.82 )	-29.87 %
% From 52-Wk Low ($ 16.91 )	33.09 %
% From 200-Day MA ($ 24.43 )	3.33 %
% From 50-Day MA ($ 25.44 )	-0.67 %
Price % Change (52-Week)	19.20 %