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No Stopping for GameStop

Here's a good article on Gamestop (GME) one of my favorite Emerging Growth stocks.

GameStop executives explained their enviable position, calling the present moment for them the outcome of the game industry reaching "a transformative stage made up of many pieces, all of which have a profound impact on our business."

The company's financials tell some of the story: for all of last year, GameStop's sales increased 33 percent, same store sales increased nearly 25 percent, and profit for the company increased 82 percent compared to the previous year. "By any barometer," one company executive said in a conference call with analysts, "[it's been] another outstanding year for GameStop."

One industry analyst, Janco Partners' Mike Hickey, forecasts growth for the company that builds even further on those enviable figures.

"Accelerating demand for next-gen hardware including the PlayStation 3 should benefit comparable store sales in the [present] period," Hickey said of the company, who added it is not just demand, but broad demand which is fueling GameStop growth.

Success for GameStop is "highly attributable to video game play attracting a mainstream audience," with the demographic expansion having much to do with "new consoles like the Wii, which pull back on the geekish complexity of typical content aimed at hardcore gamers."

But it's really the library of upcoming games that will supply GameStop with most of its revenue infusion in 2008. Hickey said today he expects that the release of Grand Theft Auto IV could net the company more than $100 million--in a single week.