You guys know how big I am on video game makers as solid stock plays.
But what about video game retailers?
One of the big ones -- GameStop -- has seen its share price double to $58 during the past year. One of the big reasons why is the mushrooming market for used video games, which analysts say is a busienss that is growing into the billions of dollars.
I'm hardly alone. Zacks.com retail analyst Rob Plaza thinks GameStop is at the top of the list of holiday season retail winners this year.
"The list is getting thinner and thinner. (But) I still like GameStop. I’ve got some more speculative buying opportunities, but GameStop’s probably the safest, because the video game retailer and the video game cycle is still strong. The price points are low enough that you don’t have to take out a home equity loan to buy a video game or the game system. And it’s targeted toward the kids and the teens, and they typically have more discretionary income, or their parents have more discretionary income for their kids than they do for themselves. So that one’s a pretty safe bet to do well this season."
CNBC's Jim Cramer, host of "Mad Money" is all in on GameStop, too. He noted last week that the average video-game player last year was 33 years old, and gamers under 18 made up less than a third of all players. "That means the video-game market is much bigger than people think, he said.
He also notes that the older gamer demographic also means that older consumers are willing to pay more for games. Video game makers already know this -- that's why they're holding off on some of their newer, bigger name games until after the holidays. Cramer says that's because sales will be strong anyway, and video game makers don't want their newer games to get lost in the holiday shopping shuffle.
GameStop is trading at about $58 right now. But analysts think it could hit $70 by Christmas. Wouldn't that kind of performance look good in your stocking?