Electronics Arts has been mentioned in the Options backdating probe... Has this already factored into the stock price as part of the recent dip from last month or is this just a black cloud on the horizon? Anyone having any insight on this???
I am totally bullish on this stock.
As far as a short position I am totally long the sell button won't be clicked for at least 12-18 months if not longer. I loaded up on more shares just yesterday. I am buying shares outright. Not calls, not puts. Buying the stock itself. Likely longer because I think the gaming cycle is going to be much longer as I think it will take 3 years for coders to unlock the true potential of the new platforms.
You say "assume that these 1,000 people all went out and shorted around $1,000 worth of shares for a total of $1 million or just over 21,000 shares.
No group or individual will swing stocks as much actions as instituitions will. 92-94% institutional ownership in this one. If the institions panic and start selling individuals get crushed. If the institutions put the squeeze on it isn't them that loses in the long run it is me the individual that is kind of at their mercy. Asking for sentiment on an issue is kind of the point of a message board. No one knows my credentials or anyone elses from posting on a message board. No matter how clearly anyone makes a case on a message board it means little in the overall scheme of the stock.
I don't frequent stock boards, so help me out here...
You posed as someone with a bullish opinion on a stock, posted something that is obviously irrelevant to other bulls, but scary to undecided folks lurking around, all with the expectation of rallying people around your short position?
Then after getting called out you react with the helpless victim of capitalism nonsense, and bring into question not the rebuttal to your original concern, but the entire system.
If this isn't accurate, ignore the rest of this post...
Do you really think that this will build enough support to cause a significant downtrend in this stock? Lets think outside of reality for a moment: assume you convinced 1,000 people that an article mentioning that ERTS had already investigated options backdating within the company is a reason to short the stock. Then assume that they didn't check another source to validate your claim (remember, in this little fantasy world I created, you aren't Jesus). Then, assume that these 1,000 people all went out and shorted around $1,000 worth of shares for a total of $1 million or just over 21,000 shares.
Even if all of the above impossibly came true, how much impact would it have on a company with 300 million shares outstanding? Considering the long term prospects for the company, what makes you so sure that this wouldn't actually cause share accumulation among stockholders buying the dips (albeit a small one), and causing a small swing to the upside on momentum?
How can you claim to be long while posting this baseless innuendo?
Check the news from July 19. It took me all of 2 seconds to find this via google.
"We recently reviewed data going back 10 years and although we're still closing off some details, we don't see anything in our prior grant history that looks like backdating or springloading," EA spokesman Jeff Brown told Reuters in an e-mail.
"Backdating options has never been an accepted practice at EA and we've always had strong processes in place to prevent it," Brown said.
And we have heard before may PR professionals and spin doctors say many things that have been horribly wrong and off base. As I was reading a article this morning about options backdating reagarding apple and steve jobs it struck me as odd that they would mention electronic arts in an article regarding options backdating which I had been researching regarding MIK.
I had figured that it had already been a part of the decline or at least factored into condsidertion but wanted to see what others opinion's were on the subject. Baseless it is not if the company is mentioned regarding an investigation that provides a base to ask others for their opinions. For the PR guy to say they are still closing some details is an admission that it isn't a completed investigation - whether or not the investigation is internal or otherwise. How may times have we heard a PR person or spokesperson do damage control?
I don't trust spokespeople worth a damm when my money is involved but if that is good enough for you jester than enjoy when the next enron comes around.