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How to profit from Madden madness

Kansas City running back Larry Johnson and Oakland saftey Michael Huff in a screen shot from Madden '08.Thousands of football fans and video game junkies will flock to stores tomorrow to buy the latest-and-greatest version of Madden, the indisputable leading brand in football video games. In the first week of sales, the game should sell at least 2 million copies.

From all of this Madden madness which should rise in coming weeks, there are two potential ways to make money: Electronic Arts (NASDAQ: ERTS) and Circuit City Stores (NASDAQ: CC).

Electronic Arts is the creator and owner of the Madden brand. Understandably, the success of the newest Madden in coming weeks should be directly correlated to the news flow for the stock. The company's third and fourth quarters should be incredible, not only attributable to Madden but also from the company's other popular games. The issue then becomes: is all of this priced into the stock? The answer to that question could go either way. While the stock is up about 10% so far in August, bulls in the stock argue that analyst estimates for the upcoming quarters remain low.

Continue reading How to profit from Madden madness

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Last updated: May 27, 2012: 08:01 AM

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