With GameStop Starting With a Clean Slate, Is Now the Time to Buy?

GameStop (NYSE: GME) cleaned house. Virtually the entire board of directors will be gone soon, it's searching for a new CEO, and the activist investor who called most loudly for a change in direction for the video game retailer is now chairman of the board.

It also has a groundswell of investor support behind it. It has a fistful of cash (or soon will) from raising money from an equity offering because its stock is trading some 700% higher than where it started the year, and it's about to pay off all of its long-term debt.

With a video game console upgrade cycle under way and its stores reporting rising same-store sales while online sales soar, GameStop looks better positioned for a new wave of growth than it has in years. Is there any reason why its stock should not be a buy?

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Source Fool.com