I believe this will be percieved as a negaitive development. Shorted more around $52.
Square, EA sever ties
19.02.2003 | Jake Rukin
For the last five years, EA and Square have been working together in the Japanese and North American markets. The deal essentially saw EA publishing Square games in North America and Square localising and publishing EA games in Japan. It has been announced that this deal will expire in March, and not be renewed.
"Five years ago, EA was not well known in Japan and Square was little known in the United States and our goal was to improve our presence in each country. Now we believe our target has been accomplished, thus we decided not to renew our contract," a Square spokesthing said.
>Rule No. 1: Never bet with an unemployed gaming engineer
>Rule No. 2: Never go in a bet with a lawyer who has spare time on his hands due to a very small clientele
>Rule No. 3: Obey the above Rules 1 & 2 or loose your money
Rab, Spec and a slew of TTWO holders would agree with that. ;-)
>Rule No. 1: Never go in a bet with Rab.
>Rule No. 2: Never go in a bet with Spec the lawyer.
>Rule No. 3: Obey the above Rules 1 & 2.
nsthil, spectris01, and a slew of AKLM holders would agree with that. ;-)
"I bought in 2 days before earnings release and sold at about 52 the day after earnings. Didn't make anything."
So all the times you were defending ERTS and all the times you were talking of buying... you didn't. That's convenient considering the recent drop.
Your chart is nice and all but I thought you were a longer term investor not a trader? The 1-year, 2-year and 5-year comparisons are interesting...
"How much have you lost on TTWO?"
Nothing. And I haven't done my taxes yet so I'm not sure exactly how big the profits were in 2002.
We didn't make a formal bet but your position had been, Sega this, Sega that, that EA had made a mistake by not supporting Sega. Well, as you have seen, EA can make all the money it needs, and then some, without Sega. EA consistently beat expectations every single quarter.
I bought in 2 days before earnings release and sold at about 52 the day after earnings. Didn't make anything.
About the bottom line, ahem, isn't this it?
How much have you lost on TTWO?
It's a real shame the only way you think you can defend your position here is to post lies.
"I got into a long winding debate with Rab about the viability of Dreamcast."
Lie #1 - it was about the viability of making easy money with easy ports, not about the viability of the system.
"I bet he'll still vouch that Dreamcast still has the better technology"
Lie #2 - I never ever said anything like that.
"has weaseled out of his bet and said that he had never owned a single Sega share"
Lie #3 - what bet? I never made a bet, nor did I ever say I'd bought or was ever planning to buy Sega stock.
I was bearish on ERTS and made money shorting it in the high $60's repeatedly. And that's the bottom line. How did you make out with your ERTS buys in the last few months Dayzee?
Rule No. 1: Never go in a bet with Rab.
Rule No. 2: Never go in a bet with Spec the lawyer.
Rule No. 3: Obey the above Rules 1 & 2.
Two years ago, I got into a long winding debate with Rab about the viability of Dreamcast. (Ask him, I bet he'll still vouch that Dreamcast still has the better technology and that it would still be successful if EA had made games for the box.) Then when Sega got hosed with the Nightmarecast and got out of hardware, Rab proclaimed that Sega will give EA a run for its money. Well, as we all now know how miserable the over-hyped Sega performance has been, old Rab here has weaseled out of his bet and said that he had never owned a single Sega share. Hah ?? (Sega will probably drop out of the gaming software business altogether now that the guy behind the Nightmarecast and formerly responsible for North American Sega operations was let go last month.
About the past insiders' sales, I too had posted that every single EA employee would surely knew that their stock was richly valued and if I were them, I would take profits off the table, too since I would have new options coming. So why blame them for having a high number of selling during the stock's peak?
I also think that this sector has cooled considerably, partly cyclical since their gaming business tends to level off during summertime and pick up during fall and the holiday season. However, I think the transition year has moved up the timetable quicker than previously anticipated, it caught some of the players by surprise when EA's competitors came in with much weaker numbers and lowered their forecasts. EA continues to steal others' market share so it's interesting to see if they can pick up the slack during the lull.
"Anyway, my point is just that their sales didn't tie in with the health of the company, which has continued to beat estimates for the last how many quarters?"
True, but it did tie in with the stock price on both those occasions.
"It'll be interesting to see how this year develops for the sector, but too much more downtrend and i'll be loading up the VG stocks again by summer in anticipation of 2004 ;)"
You and me both.
They may have in the short term, but I think in the longer term before this generation is over (late 2004, as was last gen. over mid to late 1999) we'll revisit the $70+ range. Anyway, my point is just that their sales didn't tie in with the health of the company, which has continued to beat estimates for the last how many quarters? Given the sector downgrades + economy / market + Iraq I think ERTS is where it should be. Without those factors i'd be suprised if we weren't still in the $60's or higher. Anyway, like the EA / Square thing this is really a negligable factor imo.
I'm sorta stepped out of video games myself right now. Have a 1/4 of my ERTS that I got at $52.00 about a year ago, and some TTWO and a smidgen of IPLY for the crapper pot lol. It'll be interesting to see how this year develops for the sector, but too much more downtrend and i'll be loading up the VG stocks again by summer in anticipation of 2004 ;)