Gotta make this quick:
I started a position in Activision Blizzard (ATVI) today following this morning’s downgrade of the stock from Kaufman Bros. Kaufman says “given the complete lack of financial transparency for analytically rationalizing further upside and an expected pause in momentum in the September quarter, they believe that at current levels the market has priced in a lot of the upside on a risk-adjusted basis.”
While it would be nice to have some fine print, Activision Blizzard has by far the best product portfolio in the industry for the next couple of years which I believe will go a long way into keeping the company’s earnings momentum on the upside. Guitar Hero: World Tour, Guitar Hero: Metallica, Starcraft II, and World of Warcraft: Wrath of the Lich King are all sure to be absolute blockbusters and will go a long way into fighting the tough year-over-year comp on Call of Duty 4. Plus, there could be further upside from Call of Duty: World at War (which actually looks decent) and Prototype.
I think the stock is worth at least $40 and I’ll look to build this position up. IN fact, I’m thinking of cutting down my GameStop (GME) position to own more ATVI.
Feel free to post a comment below!
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That’s what I’m talking about!!!
Matt
Not as in “I told you so,” as in…
Nice move!!!
Put in an order to buy more at 33.35 but missed. Pissed!
I got in at about $34.05, right before it dropped down. I was REALLY tempted to buy more but I figure patience is best in this market. Plus I’ve got a ton of exposure to vg stocks right now – if ERTS bounces I’ll probably short it, especially since I think Guitar Hero: World Tour will do serious damage to Rock Band 2.
I own ERTS at 42.80 and I’m looking for a pop as well, to get out, ha. Tried on Friday but just missed. Not looking good this morning. I’m heavily exposed to the vg sector as well. Have my largest position in GME, that feels like a roller coaster, then ATVI, then ERTS. Looking to get out of ERTS and holding the other two. Tough market!
Yes, GME is quite the rollercoaster. I’m thinking about chucking it but the fact I’m thinking about chucking it makes me think it might be bottoming. Damn I love playing reverse psychology with myself!