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I have already blogging about the E3 conference twice this past month. But now, long-time media investor Larry Haverty has given Barron's Magazine his thoughts on video games, saying that Best Buy Incorporated (NYSE: BBY) may be a good way to profit from the business.Haverty believes the combination of an upgraded cycle in the video game business and the transition to digital broadcasting will mean good times ahead for Best Buy shareholders. Forecasts for a 12% growth in the video game business for this upgrade cycle is way off with 25% industry growth being more likely as Take Two Interactive Software Inc's (NASDAQ: TTWO) Grand Theft Auto and Microsoft' Corporation's (NADSAQ: MSFT) Halo 3 hit the market, according to Haverty. I have noticed the same thing, that investors are underestimating the potential of this upcycle.
Best Buy has $2.5 billion in net cash, a $5 billion share repurchase program in place, and its competition is in trouble. The stock has been dead money for a while, but Haverty's argument is compelling. Best Buy is most definitely worth looking into here.
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