Just in Time for the Holidays

GameStop Corp is a multichannel video game retailer. It sells new and used video game hardware, physical and digital video game software, accessories, as well as personal computer (PC) entertainment software and other merchandise. As of January 28, 2012, its retail network of brands includes 6,683 Company-operated stores in the United States, Australia, Canada and Europe, primarily under the names GameStop, EB Games and Micromania. It operates in four segments: United States, Canada, Australia and Europe.

[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'GME'" symbolprices="64" div_align="right"]

• Gamestop has all the hallmarks of a strong company, only problem is that most investors don’t believe them, which should spell opportunity for followers of Purple Chips.

• We believe there is a high probability that the company is telling the truth based on their strong track record. They have a strong balance sheet, brand and growing earnings.

• Purple Chips 12 -18 month target: $54.00

• LOW VALUATION IN GAMESTOP AT $37.60 (GME-US, $37.95) FULL POSITION

PURPLE CHIPS TARGET: $54.00 POSITION SIZE: FULL (5.0%) P/E: 11.5X DIV: $1.32 (3.5%) MKT CAP: $4.2B Debt: NIL RETURN ON CAPITAL: 108.6% EARNINGS YIELD: 14.9% 5 YR EPS Growth rate*:9.8% P/E/G Ratio: 1.2X 2014 EPS: $3.28 2015 EST.: $4.36 2016 EST.: $4.88

*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.