Readers Weigh In on Cramer's Consolidated Stores Question

JJC wanted to know how <I>TSC</I> members could address this situation. Here are some ideas.
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James Cramer this afternoon mused about the selloff in Consolidated Stores (CNS) - Get Report and how TSC members could play it. Here are some readers' suggestions:

James Cramer:

I'm also the father of an 8-year-old and a 5-year-old. Those game cartridges are way too expensive for routine purchases. Plus, the local video store rents them for $3 for a weekend. Why buy when you can rent? Then, if you really like it, buy one for special rewards.

I own no stock in Consolidated Stores. I am a father of two kids, however.

Even though the closest toy store to where I live is a

KayBee

, I find the place a great disappointment. There is a severe shortage of toys there to challenge the imagination and to stimulate a child to think. Whatever happened to Erector sets, or build your own robot sets? Even when I wish to buy a

PlayStation

video game, the selection there is limited. When I wish to avoid sales tax or a trip to the store, I find their Web site cumbersome to use, with an inadequate selection of toys to select from.

It's the old story. If they wish to succeed, they must fulfill the customer's needs.

--

Dan Oren

I don't have any kids yet -- my first is due next month == but here are my thoughts on video game sales slowdown possibilities:

A simple search on

eBay

(EBAY) - Get Report

reveals over 500 Gameboy hits. That is where I would by buying $30 games for $12.

I don't think

Sega

or

Nintendo

(NTDOY)

has put out a new machine lately. Sales may be slowing as people wait for the next 9000-bit generation games.

You said it yourself, why go to KayBee when you could go to

Wal-Mart

(WMT) - Get Report

and save money.

Finally, my own experience with KayBee is that the stores are disorganized and the sales help have no idea what their inventory is.

--

Eric Lubin

As a father of three, we don't allow video games in the house and we travel in a custom van with a television and VCR. However, if Beanie Baby sales were said to be slow, then I'd protest to the difference.

--

Allen Swaim

I don't have any position in the stock and I agree with you about e-games. My stepson drives me up a wall when he is playing with his Playstation behind me when I'm online trying to read

TheStreet.com

or do some charting. But again, you're right -- the Gameboys beat boredom in the car. Not that there aren't more constructive things to be doing.

The last time we bought a game from any store in the mall was last October. My son (I have three e-kids) bought a game for his stepbrother at

Babbages

because everybody else had sold out. Usually, we go first to the resale store to trade or buy and if we still need the newest game, to

Best Buy

(BBY) - Get Report

.

Guess it's already too late to short CNS.

--

Maris Eshleman

It's not the Gameboys or shipping -- it's the rest of the toy biz.

Have you heard of the declining birth rate and aging population? It's a long-term problem.

Lack of new exciting (nonelectronic) toys, coupled with the flattening of

Barbie

after a huge run, is a short-term problem

No positions currently but a short is in the future.

--

John Rackers

I do not have a position in CNS, but I believe there is some merit in what the company is saying. With the new Sega system due out shortly, parents are less likely to buy additional Nintendo 64 or Playstation games -- or at least, that is what I am doing.

--

Don De Menno

I agree. I am a father of a 6-year-old and a 10-year-old. Nintendo 64 and Gameboy are always in demand. We get them at

Target

or

Electronics Boutique

.

--

Mike Karter

Curiously, CNS has said

Star Wars

is the only bright spot.

Hasbro's

(HAS) - Get Report

CEO says Star Wars meeting or beating expectations. Yet Hasbro keeps going down. It's curious, since Hasbro will do well whether people buy at Wal-Mart, as you said you bought GameBoy cartridges, or if people choose AMZN, ETYS or any other store or e-merchant.

This is my play on the CNS news.

--

Sandi Lynne

Just an anecdotal experience. As is the case with many 8-year-old boys these days, my son had to have the latest Pokemon cards. KayBee Toys had them, but KayBee wanted $14.99 for the pack which, was $5 more than the suggested retail price. Rather than pay the inflated price, I ordered them online from someone else and paid a small shipping charge. Thus KayBee lost a sale it could have made a profit on. In addition, it will not see me in person again.

--

Barry Lieberman

I have a 9-year-old and get the video games at

BrainPlay.com

. They have free shipping, no tax in California and it usually arrives in a few days. I went to

Toys R Us

(TOY)

for an emergency -- birthday party on Friday night -- and had to pay full price and tax. It ended up as $32 vs. $22.36 from Brainplay.com. I will only shop at Toys R Us with time crunches. Wal-Mart is not handy where I live. The Web is the way to go.

My son talks about wanting to program games out of his experience. This is not so terrible.

--

Alita Rosenfeld