GameStop (NYSE:GME) shareholders: Do you feel lucky? The brick-and-mortar video game retailer currently trades at a ridiculously low price-to-earnings ratio of 4.5 times next year’s estimated earnings, with a dividend yield over 10%. A valuation that low is usually ominous, suggesting investors believe GameStop’s earnings will rapidly decline in the coming years.
There’s reason to be nervous. GameStop is facing the daunting prospect of remaining a brick-and-mortar retailer of physical video games, in an age in which traffic is migrating online and more games are being....More>>>