Monday, March 9, 2015

Gamestop GME new money for old people

A fun stock for income investors that have a bit of an appetite for risk but are willing to lose their stock if it soars.

GME, GameStop is a stock a client of my owned and it was not pretty.  Without a doubt GameStop has had a bit of a rocky ride from an earnings view point.  

Most recent earnings look good. At $3.20 per share, EPS far exceed the dividend. 

Currently the dividend is $.36 per share for an annualized yield of 3.52% at an intraday price of $40.80.     They have consistently raised the dividend since they started paying out in February, 2012.  GME is ex-dividend on March 13, 2015.  GME has almost no debt with a D/E ratio of .17.

I sold April $48 calls for $.83.  I get the dividend and the call.   

This is one that I hope they don’t take but I will not be unhappy if they do.