You may be right, though what I said 4 years ago when we had doom and gloomers here saying "20's here we come [pre-split]" is that if the industry is growing then ERTS's current size does not matter as long as they are growing their fair share of each years new revenue addition to the industry.
Cell phone games also, could be big in the future. So as long as the industry is growing from 9b to 10b to 11b I think ERTS can grow well also.
Smart move. After a couple of weeks it should have settled.
I think some of the other smaller companies will have more upside potential to them however. I think ERTS is just to big to be a fast grower anymore.
But as the leader it gets a valuation bonus, even if after 5 years of blowing out earnings there's some pull-back this year. Happens to the best of them, and it could be re-revised up just as easily depending on the pipeline and the ever-fickle consumer. That cash they have on hand also has to be considered, and how Madden plays out this year given the exclusivity.
The number if your head is probably in the $35 range i'm thinking. I'd buy a boat just to load it up if we see that price, but it's probably as dreamy as "ERTS shooting straight to $85!" I think. I'm giving it a couple weeks to settle out, there's a hole in the boat!