Great Trade in Video games now

[thech0senONE]

I like ERTS, electronic arts. They are the largest video game producer in the world. One of their biggest games just sold 1.7 million copies of FIFA 10, a soccer game, last week! That's right, all in one week, that's huge. But their financials back them up for a long term investment as they have no debt both long and short term. And their operating activities are obviously solid. As for trading, Now is definately the time. With a volatility of around 80 and earnings season for third and fourth quarters they will definately surpass numbers, especially after selling that many copies of just one game. Video games is flying under the radar and it's that time of the year where it shouldn't be. It's around $20 now, I can see it going to $30 by Q2 2010. Also look for it's competitors to also rise in TTWO and ATVI as they will probably rise too. Remember, Fourth quarter is when video game companies push out their best products in order to build hype for Xmas sales.

[BentleyVTech]

Im more of an Activision fan (ATVI). Electronic Arts is improving but for the last 6 years +, they've just been doing minor improvements to the games with roster updates. I will agree they are on the rise, because this years Madden was the best I've played in awhile.

Activision will have a good winter due to Call of Duty : Modern Warfare 2.

[thech0senONE]

True, ATVI does look good, but that's just one game that they have that's truly big. ERTS has so many more. Plus if you figure in the P/E ratios and Growth rates, not to mention some long term debt for ATVI, I don't think there is too much room for profit in that trade. ERTS is growing at 400% company wise.

[StocksonWallStreet.net]

True, ATVI does look good, but that's just one game that they have that's truly big. ERTS has so many more. Plus if you figure in the P/E ratios and Growth rates, not to mention some long term debt for ATVI, I don't think there is too much room for profit in that trade. ERTS is growing at 400% company wise.

http://stocksonwallstreet.net/2009/08/04/video-games-a-45-billion-industry-on-a-path-to-the-top/

http://stocksonwallstreet.net/2009/08/05/gamestop/

[thech0senONE]

Of course, who could forget GME

[BentleyVTech]

I do not see a future in Gamestop...think about it. Where are we going in the video game world, hard disc games or downloadable games?

When most of a company's stock price is based on future year earnings, I eventually see gamestop's whole business plan going down the drain.

[thech0senONE]

funny you mention that since I just saw this article today.

http://www.marketwatch.com/story/video-game-makers-look-to-direct-distribution-2009-10-09?siteid=yhoof

[BentleyVTech]

I've been thinking that for awhile...its still far away though, something about having an actual item in your hand is still valuable for us consumers.

We've got to get the storage capacity of our gaming consoles up a lot before downloading becomes mainstream, but to be honest gigabytes are getting cheaper by the day!

It'll save game makers money because they dont have to produce the cases and discs, it'll save the consumers money because of those same reasons AND it'll leave gamestop selling old used games!

[thech0senONE]

I agree. Not only that but the gamemakers would be cutting out the middleman and instead of selling their games to retailers for $30 they could sell them for $50 or $60 themselves. If that ever happens GME would fall bigtime since a good portion of their profit is from new games although used games might be able to keep them afloat.

[pburggra]

I see a cup and handle formation in atvi. If I begin to see strength I'll buy.

One thing that does worry me is the high volume on the last two down days.

No pattern will be perfect though.

[Kevin Wong]

I just bought some GME for Q4. With Sony, Microsoft, and Nintendo cutting their console prices, the fence-sitters like me might just buy another system (I've been eyeing a PS3 for years now). System purchases leads to software and accessories purchases and we have a good quarter. I think GME shines with their trading of used games. Sure, you could get a good deal on craigslist or eBay, but it's nice to walk into a brick and mortar store and be in and out with a game within 10 minutes.

I think you guys might be right about the long term. GME might be outdated in a few years and will likely lose a bit of market share sooner than later.

[thech0senONE]

video game sales reports come out tomorrow...

http://www.marketwatch.com/story/video-game-sales-expected-to-recover-after-slump-2009-10-14?siteid=yhoof

[newcatintown]

ATVI is a much stronger company than Electronic Arts IMO. The games ATVI has coming down the pipeline in the next few years will send the stock through the roof (Starcraft 2, Diablo 3, the next MMORPG that will replace WOW is in the making). ATVI produces the best games in the industry and I believe the video game market will move stronger toward computer games which is where Activision has a competitive advantage.