Continue reading Don't Expect Much Upside for Video Game Stocks

Don't Expect Much Upside for Video Game Stocks originally appeared on BloggingStocks on Fri, 16 Apr 2010 15:00:00 EST. Please see our terms for use of feeds.

We all talk about the fundamentals behind an investment idea, but sometimes you have to pay more attention to the observed price action. That's what I was thinking today while checking out Activision Blizzard (ATVI).

I have been watching this publisher of entertainment software closely as of late, wondering if it was time for me to get back in. Compared to other similar companies such as Electronic Arts (ERTS) and Take-Two Interactive (TTWO), I think Activision Blizzard offers the best potential for both the console market and online gaming.

Continue reading Activision Blizzard's Interesting Price Action

Activision Blizzard's Interesting Price Action originally appeared on BloggingStocks on Thu, 15 Apr 2010 16:30:00 EST. Please see our terms for use of feeds.

Take-Two Interactive (TTWO) is the kind of stock I want to take a chance on but just can't bring myself to do so. The situation can be risky unless a fresh bit of Grand Theft Auto content is about to come out into the marketplace. Then again, those who bought ahead of the Q1 earnings report, released yesterday after the bell, are pretty overjoyed this afternoon, seeing that the stock is, at the time of this writing anyway, up well over 9%.

Net sales increased 9%. The adjusted loss from continuing operations was 31 cents per share. Last year at this time, shareholders were looking at a loss of 56 cents per share on the same basis. Reuters says the analyst call was for the red ink to equal 51 cents per share. Good job, management.

Continue reading Take-Two Trading Higher After Q1 Results: Is Stock a Buy?

Take-Two Trading Higher After Q1 Results: Is Stock a Buy? originally appeared on BloggingStocks on Thu, 04 Mar 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Zynga Valuation Said to Top $3 Billion

Zynga Valuation Said to Top $3 Billion originally appeared on BloggingStocks on Mon, 22 Feb 2010 09:00:00 EST. Please see our terms for use of feeds.

Earlier in the week, I discussed the disappointing reaction concerning Electronic Arts (ERTS) and its most recent quarterly report. Just a couple days later, Activision Blizzard (ATVI) released its own three-month numbers, and the situation was completely different. The market liked the data, deciding to give the stock a bid.

There are three very positive elements to the fourth-quarter story that are obviously intriguing investors. First, on an adjusted basis, the publisher delivered 49 cents per share on the bottom line, which, according to Reuters, is six pennies ahead of projections. Second, shareholders have a $1 billion repurchase initiative to look forward to. Third, management believes it's time to directly distribute some of the cash-flow spoils to its true believers: A 15-cent annual dividend has been declared.

Continue reading Activision Blizzard Posts Successful Q4: Is Stock a Buy?

Activision Blizzard Posts Successful Q4: Is Stock a Buy? originally appeared on BloggingStocks on Thu, 11 Feb 2010 08:50:00 EST. Please see our terms for use of feeds.

Electronic Arts Inc. (ERTS) was down in the after-hours session by over 9% on the heels of the gaming publisher's Q3 report. Non-GAAP sales were off by over 20%. Adjusted income came in at 33 cents per share. This was two cents higher than expectations according to my earnings preview, but a lot less than the 56 cents per share earned in the comparable frame.

The press release mentions the lower quantity of titles released during the holiday season as being a driver of the decline in revenue (a tough European market was also cited). That may be, but it doesn't absolve EA of its fundamental challenges.

Continue reading Electronic Arts Down Big in After-Hours Following Q3 Report

Electronic Arts Down Big in After-Hours Following Q3 Report originally appeared on BloggingStocks on Mon, 08 Feb 2010 18:00:00 EST. Please see our terms for use of feeds.

THQ (THQI), a video game publisher whose colleagues include Activision Blizzard (ATVI) and Electronic Arts (ERTS), reported very good news this week. For the third quarter, non-GAAP income was 35 cents per share. In the comparable frame, a loss of 14 cents per share was posted.

This obviously represents a vast improvement, although it should be noted that it didn't come on the back of a big sales increase. On a reported basis, the top line was flat, and on a non-GAAP basis, it was down more significantly. This is important to note, because it would have been nice to have read about a revenue expansion, considering the way the gaming industry has been suffering.

Continue reading THQ Reports Adjusted Profit in Q3

THQ Reports Adjusted Profit in Q3 originally appeared on BloggingStocks on Fri, 05 Feb 2010 17:20:00 EST. Please see our terms for use of feeds.

Well, I finally did it. Last week, I sold my position in Activision Blizzard (ATVI), at a price of $10.62 per share. I thought about it long and hard, but in the end, I felt it was the right thing for me to do at this time.

In case you haven't noticed, shares of the video game publisher have been in something of a downtrend as of late. The industry isn't what it used to be. Gaming isn't going away, certainly, but those who follow this sector will no doubt agree that the growth is possibly no longer there, at least for the short term.

Continue reading Why I Sold Activision Blizzard

Why I Sold Activision Blizzard originally appeared on BloggingStocks on Tue, 26 Jan 2010 10:00:00 EST. Please see our terms for use of feeds.

Take-Two Interactive (TTWO), a video game publisher whose competitors include Activision Blizzard (ATVI) and Electronic Arts (ERTS), actually held up well Thursday after the company issued its Q4 report. I was honestly expecting a sell-off after the news. Why? The video game industry just isn't popular these days, so I figured the market would have found some excuse to send the shares packing. To my surprise, Take-Two gained over 1.8% in the regular session and then another 3% in the after-hours following the release.

Revenues increased 6%, but the action was in the per-share profit line. On an adjusted basis, Take-Two brought home 9 cents per share versus 2 cents per share in the fourth quarter of 2008. But I don't think the market cared too much about the data. After all, guidance for Q4 had already been announced near the beginning of the month. At that time, the stock was punished for the bad outlook and the upcoming GAAP loss. And I mean really punished. It lost 30% of its value at one point.

Continue reading Take-Two Reports Much Higher Adjusted Income

Take-Two Reports Much Higher Adjusted Income originally appeared on BloggingStocks on Fri, 18 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

How about Take-Two Interactive (TTWO)? That stock was down 30% in afternoon trading at the time of this writing. 30%! According to The Wall Street Journal (subscription required), management issued some poor guidance that has shaken the confidence of market players. Add to that the general state of the retail environment, and you've got yourself a decidedly awful combination.

Continue reading Take-Two is yet another victim of video game malaise

Take-Two is yet another victim of video game malaise originally appeared on BloggingStocks on Fri, 04 Dec 2009 15:40:00 EST. Please see our terms for use of feeds.

Shanda Interactive (SNDA), an electronic media company based in China that distributes online games and other content, reported Q3 earnings on Tuesday after the bell. According to our earnings preview, analysts were expecting 88 cents per American Depositary Share (ADS). On a reported basis, 90 cents per ADS was recorded. On an adjusted basis, the business achieved $1.08 per ADS.

Shanda not only did well in terms of an earnings beat, but it grew the top line quite admirably. Gross margin, unfortunately, saw a dip on both a year-over-year and a sequential basis.

Continue reading Should you buy shares of Shanda?

Should you buy shares of Shanda? originally appeared on BloggingStocks on Wed, 02 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

Adjusted revenues were up a scant 2%. Earnings per share, excluding items, actually showed a profit of 6 cents. This was a lot better than the loss of 6 cents per share seen in the year-ago frame. The company also managed to generate a small amount of cash from operations in the quarter instead of using a whole bunch like it did last time around.

Continue reading Electronic Arts not popular with investors after Q2 report

Electronic Arts not popular with investors after Q2 report originally appeared on BloggingStocks on Tue, 10 Nov 2009 15:20:00 EST. Please see our terms for use of feeds.

Activision Blizzard (NASDAQ: ATVI) published third-quarter results on Thursday after the bell. I can't say I was wholly taken with them. I know the best is probably yet to come once the Christmas shopping season really gets under way, but I was a little disappointed that the company saw a decline in adjusted profit.

Excluding items, Activision Blizzard made 4 cents per share this quarter versus the 7 cents per share made in last year's similar period. Well, did I say I was a little disappointed? Make that a lot disappointed. After all, this is supposed to be the publisher with the best pipeline on the block, the one with the Guitar Hero franchise and a great portfolio of licensed intellectual properties.

Continue reading Activision Blizzard's Q3: Am I right to be bearish?

Activision Blizzard's Q3: Am I right to be bearish? originally appeared on BloggingStocks on Fri, 06 Nov 2009 10:20:00 EST. Please see our terms for use of feeds.

Sounds good, doesn't it? Well, the company's A shares are down slightly as I write this by about 0.6%, and the B shares are just about flat. Like I say, if the broader indexes were in an uptrend this afternoon, we probably would have seen a pop in the stock.

Continue reading Viacom does well in Q3, but there is still work to be done

Viacom does well in Q3, but there is still work to be done originally appeared on BloggingStocks on Tue, 03 Nov 2009 14:20:00 EST. Please see our terms for use of feeds.

Activision Blizzard (NASDAQ: ATVI) remains confident in its guidance for full-year earnings. According to StreetInsider.com, management is still looking for sales of $4.5 billion on the top line and adjusted earnings of 63 cents per share on the bottom line.

The publisher, which competes with Electronic Arts Inc. (NASDAQ: ERTS), should benefit from recent hardware price cuts made by Sony Corporation (NYSE: SNE) and Microsoft Corporation (NASDAQ: MSFT). With more units in the field, there most likely will be higher demand for Activision Blizzard's awesome pipeline, which includes Call of Duty.

Continue reading Activision Blizzard still looking good?

Activision Blizzard still looking good? originally appeared on BloggingStocks on Mon, 21 Sep 2009 18:00:00 EST. Please see our terms for use of feeds.

The news for video games isn't improving, I'm sorry to say. My colleague Mark Fightmaster recently discussed the disappointing industry sales results observed in the month of August. As he pointed out, total revenues for the sector have now dropped six times in a row.

Oh, that doesn't feel nice at all. I own shares of Activision Blizzard (NASDAQ: ATVI), and I have to admit, the trend does send an icy chill down my spine. But I'll bet shareholders of Electronic Arts (NASDAQ: ERTS) feel even worse. August, of course, is a big month for them. The latest version of the Madden football franchise is released during the latter part of summer. Unfortunately, this year's game seems to have been a disappointment in terms of units sold.

Continue reading Electronic Arts misses with Madden?

Electronic Arts misses with Madden? originally appeared on BloggingStocks on Tue, 15 Sep 2009 09:30:00 EST. Please see our terms for use of feeds.

The Guitar Hero franchise is one of the reasons why I keep holding the stock. I figure a lot of units tied to the brand will be sold this holiday season. However, there is a looming threat. Viacom (NYSE: VIA) and Electronic Arts (NASDAQ: ERTS) are set to release The Beatles: Rock Band. The street date is September 9, and analysts will be watching the early sales very carefully to see how the dynamic shapes up.

Continue reading Will The Beatles threaten Activision Blizzard?

Will The Beatles threaten Activision Blizzard? originally appeared on BloggingStocks on Fri, 04 Sep 2009 15:00:00 EST. Please see our terms for use of feeds.

Monday, August 31, 2009, will go down as one strange trading day. Disney (NYSE: DIS) buys Marvel (NYSE: MVL). BloggingStocks reported the details of the deal here.

As a long-time shareholder of Disney, I have to ask: Does CEO Bob Iger know what the heck he's doing anymore? I thought the news was quite surreal. I suppose we all knew that Marvel would be a takeover target someday but, honestly, I thought some other media conglomerate, like maybe News Corp. (NASDAQ: NWS), would do a deal before the Mouse would.

Continue reading Does the Disney/Marvel deal mean that CEO Bob Iger is out of ideas?

Does the Disney/Marvel deal mean that CEO Bob Iger is out of ideas? originally appeared on BloggingStocks on Tue, 01 Sep 2009 08:30:00 EST. Please see our terms for use of feeds.

So you've heard the news I'm sure. Microsoft Corporation (NASDAQ: MSFT) is not standing still in the video-game wars. It recently reduced the price of the Xbox 360 Elite system by $100. We now have parity between an Xbox 360 unit and a Sony Corporation (NYSE: SNE) PlayStation 3 console.

It's going to be interesting to see how hardware sales perform in the coming months. Intuitively, one would have to expect a bump in the number of units sold for both companies. But which one will win out?

Continue reading Microsoft, Sony, and the cheaper Xbox 360

Microsoft, Sony, and the cheaper Xbox 360 originally appeared on BloggingStocks on Fri, 28 Aug 2009 17:30:00 EST. Please see our terms for use of feeds.

Oh, I am so depressed! I was thinking of buying Activision Blizzard (NASDAQ: ATVI) for an earnings trade, but unfortunately never got around to it. Those who did are pretty happy. The publisher released second-quarter results on Wednesday after the bell, and investors bid the stock over 10% higher today.

Adjusted revenues came in at a little over $800 million. Management's previous guidance called for $775 million to be booked. Adjusted earnings were 8 cents per share, 2 cents ahead of company expectations. According to Reuters, this was a penny better than what the actual analysts were forecasting.

Continue reading Investors love Activision Blizzard's Q2

Investors love Activision Blizzard's Q2 originally appeared on BloggingStocks on Thu, 06 Aug 2009 17:40:00 EST. Please see our terms for use of feeds.