ERTS: Reit Strong Buy - Target $70, We continue to believe that EA is the company best positioned to benefit from the growth cycle in the entertainment software industry. While shares have declined following the run-up into the holiday season, the company`s results for the December quarter should be very positive. While the company likely won`t give guidance beyond the current fiscal year, we expect analysts` estimates for fiscal 2003 to rise. We believe that at current levels shares of ERTS are attractive.
EA killed Privateer Online because it was too similar to E&B. Privateer would have been better and could have capitalized on the Wing Commander name and characters, plus it probably would have come out sooner. E&B will do better than Motor City Online but I doubt it will be as successful as Privateer Online could have been.
>E&B=Earth & Beyond, the Sci-Fi Wing Commander-like online game due out later this year.
Hmmm . . . a massive persistent state space combat world with 4 or so different teams/races/species/factions that try to take over each other's planetary systems would be kinda cool. There was an old (I'm really dating myself here) game called "Empire" on a CDC Plato system that was very popular on that system like that. Someone should grab the Star Trek license and build such a game with Klingons, Federation, Romulans, & whatver forces.
Thanks, Ertsy. After many days of thunder, we should get a few days of sunshine. True, the stock has rich valuations but the company fundamentals are finally catching up.
What Barron's articles didn't address is that the gaming sector remains healthy despite the recession and it is poised to get even stronger with the increasing installed base. All 3 main console makers (sorry Rab, no room for Sega here:-)) continue to report the boxes selling through in post-holidays, and so the same goes for software products.
When people get a gamebox under the tree, what do they do next?
And this belief is based on what? What, exactly, about EA makes them believe that EA can continue to manage their assets in such a manner that will allow them to maintain a profit? Please show me exactly what sound and reasonable fiscal thinking this is based on.
What, exactly, about EA makes them believe that EA can continue to manage their assets in such a manner that will allow them to maintain a profit?
Past performance for one. Three new consoles released in the past year and are all growing in installed base. EA.com is losing money, but it's losing LESS money, that's at least a move in the right direction. I wouldn't be surprised to see continued MAJOR changes in EA.com over the next 6 months.
Show me another Tech stock who's price went from $38 to $62 last year? Up 63% in 2001, that's just awesome. I paid 39.50 and have been adding on sharp pullbacks which ERTS does have at times. I love their games and everyone want to play them. ERTS is truly IN THE GAME!
I have an account at CSFB and they're investor research page says:
ERTS is due to report results for the 3rd quarter of 02' on 1/30/02. Estimates are $710 million in revenue and .86 in EPS. We expect the company actual results will come in significantly higher due to the strong expected performance of the company's US video game and PC businesses, and a solid result from the company's video game business outside the US. WE believe the company could report revenue as high as $775 million and EPS of .98 to 1.00.
and they have great games too
If ERTS has such a promising future, tell me why a reputable firm like T. Rowe Price would dump almost 50% of it's holdings of this stock?? Something fishy going on around here. As an investor who saw the earth collapse beneath his feet over an 18 month period and with a giant like Enron getting sucked dry, I wouldn't trust another stock like this for the life of me. It's only a matter of time before the truth really comes out. A lot of companies (including the one I work for) have been exaggerating revenues or failing to accurately report earnings. My company is a $4 billion co. whose stock went from $14 to $0.08 in less than 2 years. All I can say to the common investor is BUYER BEWARE!! There is no such thing as a safe stock, adjust your portfolios accordingly. Hold ERTS if you want, but I sure wouldn't buy.