I dont get it

[PJ12]

What is wrong with this market, Purchased GME 51.18 now they report what I thought was very good....GameStop Corp.'s (GME) third-quarter income increased to $52 million, or 31 cents a share, from $13.6 million, or 9 cents a share, a year earlier.
The Grapevine, Texas, video game and entertainment software retailer said sales increased 59.3% to $1.61 billion from $1.01 billion.
Comparable store sales, or sales of stores open a year, rose 46.3%, beating previous guidance of 30% to 32%.
GameStop expects fourth-quarter comparable store sales to increase 7% to 9%.
The company also predicts earnings of 95 cents to 97 cents a share for the fourth quarter.
GameStop increased its guidance for 2007 income to $1.61 to $1.63 a share, and revenue is expected to grow 28% to 29%.
The company predicts comparable store sales for 2007 to increase 20% to 21%.

And yet its dropping...... next quarter should be even better after the holidays but Im kinda gun shy on picking up more shares....any suggestions? Thanks in advance

[PJ12]

Analysts didnt like 4th Q outlook: GME expects per-share earnings of 95 to 97 cents, with a 7% to 9% jump in same-store sales. Analysts were a little more optimistic, expecting per-share results of $1.01 per share. I added to my position

[StockJunkie]

That might not be a bad idea PJ. It is amazing how a company can blow out earnings but have a wishy washy future outlook and get sold off heavily.

The stock closed Friday at $49.32 and really this will have to be a longer term hold if you want to make any money. Since it is now trading well under its 50 day moving average and has seen several strong distributions days the stock has technically broken down.

As great as Gamestop (GME) may look fundamentally I would be careful making it a long term position to hold, especially in this market.