It's Game Off As Singer Feels Playtime has Lost Its Appeal ; Market Round-Up

Evening Standard - London › September 04, 2009

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Summary

SHAREHOLDERS in Game, the video and computer gaming emporium, have enjoyed a heady summer. Since the company's AGM trading update in July, its shares have risen from 137p to 175p but now may be the time to pause.

The company rose 4.9p today to 178.9p but a raft of weak industry stories recently topped by yesterday's results from HMV -- up 2.5p at 114p -- could be reasons enough to sell. Analyst Mark Photiades at Singer Capital is downgrading the entertainment retailer's shares to sell from fair value on the grounds its winning streak has left them looking dangerously overpriced. Also, US outfit GameStop, a similar operation to Game, has failed to hit its own targets and price cuts for game consoles from Sony and Microsoft underline the weakness of the market. Singer is also impressed by HMV's second- hand offering, Re/Play which is already exceeding internal targets and reckons it "poses a major competitive threat to Game's lucrative pre-owned business".

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Extract

It's Game Off As Singer Feels Playtime has Lost Its Appeal ; Market Round-Up

After three days of losses the FTSE 100 opened up 38.76 points at 4835. Miners and financials provided the momentum although much of the day's excitement is set to come from sp...

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