Gaming Industry

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slavduja

Just bought ATVI at $12.00 :D
Wanted to see what some of you think of the video game makers as a longer term investment??
Any feedback would be helpful, I am new to the investments world so take it easy!! LOL
Their books look good.Increasing cash flow and earnings, massive merger with Blizzard which is a huge boost to revenue due to their online subscribers. Large international presence. Almost anywhere I have checked analysts have a strong buy on it which is great to see.
Let me know if I am missing something??
ERTS is looking awfully cheap, I am from Vancouver and have a pass to their Burnaby facilities , great place!!
 
Quote from slavduja:

Just bought ATVI at $12.00 :D
Almost anywhere I have checked analysts have a strong buy on it which is great to see.
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Check you assumptions on this. I have not looked at this stock but when analysts are all leaning the same way it sets things up for the unexpected. My recomendation for you if this is a long term investment would be to read their last quarterly and yearly report and look for anything that they may have missed it may surprise you that they do miss items alot of the time. Then make your own assumptions on the future for the company and compare it to the analysts. I also live near the Burnaby location and yes it is cool but that alone does not make it a good investment at this time.
 
I think NVDA at 6 dollars would be a great long term investment. Basically its a company that should have no problem still being around in 10 years and is a market leader in graphics chips.
 
NVDA is being pushed out of its business by AMD and INTC. I can't see where this company is going unless they discover some miracle chip. Also, management seems pretty lousy.
 
Quote from Cashdollar:

NVDA is being pushed out of its business by AMD and INTC. I can't see where this company is going unless they discover some miracle chip. Also, management seems pretty lousy.
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NVDA makes graphic cards and AMD and INTC make processors. You know nothing. AMD owns ATI that makes graphics cards now but NVDA is far superior right now.
 
ATVI is a good company. Here is my take on it from another forum, I have made alot of money with this company.

They just merged with blizzard and because I have been a computer geek I know a lot about these companies. Blizzard owns World Of Warcraft. The most addictive game ever. WOW has over 8-10MILLION people playing the game and the all pay $15 a month. So 8milll X $15. A lot of money that they are taking in. They completed the merger on July 10, 2008. So this is going to be the first time that they are reporting earnings for the Blizzard part and WOW. Its going to be a monster. This is all my fundamentals on this company. Oh and also they make the Guitar Hero game that is one of the number 1 selling games out right now.

Now to the tech, If you look at the yearly chart I have here, even though the PPS of the stock as been going down because of the markets, the Accum/Dist has been going up.
 

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This company has not been tested by bad news yet. At 21 PE I would stay away unless you believe that people do not cut on spending on entertaiment during depression. (I read somewhere that cinemas did not suffer during 30's)
 
21 price to earnings ratio was scaring me a bit.But I wanna see what happens with the Blizzard numbers. I find it that ERTS and ATVI are forming an Oligopoly in the gaming industry. The way I look at it, numbers from blizzard which is known to be very prifitable should do nothing but boost ATVI earnings. Even if we see the recession worsen in the emerging markets like Korea where Blizzard is absolutely dominating we still will be better off than we are now.I am also gonna buy ERTS but definately not as much of it as ATVI.
 
What settings is that accumulation distribution? It kept going straight up long after the stock completely broke technically, it seems a very long term indicator. It should instead oscillate a bit more.

Another computer geek here, until recently that is. ATVI is unquestionably the best in the industry. And the Blizzard merger is huge, Blizzard is actually the best in the biz, and they're now really monetizing their very loyal fanbase.

Anyway, stock price looks like shit, high PE, but the next year will be absolutely golden for publishers, their earnings fluctuate a lot because of the console generations, now they are in the middle of the cycle and are in printing money phase. Earnings are already very good but they could become even better, maybe a few blowout quarters.

Personally I wouldn't touch it, I prefer technicals.
 
Quote from mike007:

NVDA makes graphic cards and AMD and INTC make processors. You know nothing. AMD owns ATI that makes graphics cards now but NVDA is far superior right now.
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It is you that know nothing. NVDA recently had to scrap their motherboard business because of pressure from Intel. Also, Intel has the majority of the graphics chip market and they are just getting started.
 
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