Wednesday, September 13, 2006

Gamestop Weasel Sentence

Gamestop (NYSE:GME) had an interesting weasel sentence in their last quarters earnings release. “Note that guidance does not include merger costs related to the business combination, which we project could range from $0.03 to $0.04 per diluted share for fiscal 2006.” This immediately followed a statement “that guidance includes projected stock-based compensation expenses of $0.17 per diluted share for fiscal 2006.” Many companies like to leave an out and blame performance on un-anticipated merger costs. This usually covers a wide range of sins.