GameStop's Stock, GME, Jumps 8% on Reports of Sycamore Partners Buyout

Shareholders of GameStop finally have some good news.

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GameStop shareholders have been getting beat up for the past year with very few respites from what seems to be a never-ending selloff of the stock. This may have changed today just after 3:00 PM ET as the stock was halted due to a volatile move to the upside. Reuters is reporting that GameStop is in talks with buyout firms regarding a potential takeover of the stock.

GameStop currently carries a "Buy Rating" in our Game Trader: Video Game and Tech Stock Ratings. Apparently Sycamore Partners agrees with my analysis that GameStop's stock is cheap. GameStop's chart was highlighted in our recent Pre-E3 stock chart analysis with a technical buy signal becoming active above $13.89/share on the monthly chart. This is great news for shareholders, but don't get too excited as neither GameStop nor Sycamore Partners have confirmed these talks are ongoing. The news that Sycamore Partners has hired a financial advisor to assist in these discussions is definitely bullish for GameStop shareholders, but there is no guarantee that GameStop's board and shareholders will decide to sell.


Full Disclosure:

At the time of this article, Asif A. Khan, his family members, and his company Virtue LLC had the following positions:

Long GameStop via GME shares 


Investors should do their own research or consult their advisor before acting on this information. This is an educational article and investors should consider each recommendation based on their own risk tolerance and suitability.

Asif Khan is the CEO and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

From The Chatty