EA said it expected fourth-quarter results to range from a loss of 3 cents per share to a profit of 2 cents per share
apparently, legg mason likes throwing away $ on losers....
Strangles work for volatile stocks and even better in a volatile mkt like this one. You want to look for highly touted stocks that are likely to move one way or the other. I think your Jun calls still have a good chance of giving you a payday. For erts it will depend on the FY08 conference call. TTWO seems to have a lot of turnaround growth that's not priced in the stock yet. TTWO's ern's should be a big propellant to the stock (especially with only a 74M sh float and past losses to offset against this yr's gains). ATVI is still looking good too and should push through $30 relatively soon after the merger goes through. GL
That sounds like a good strategy. I'd consider it, but I'm still reeling from my EA Jan calls that I bought 2 years ago and took a huge bath on. Damn Sony. I even used to work there, I should have known better. Still, my fault, really, I bet heavy and lost heavy. Chalk it up to tuition...I've still got some EA June 55 calls and TTWO June 20 calls left and those are down too, but if/when they hit, I might start following your posts a little more closely for ideas...otherwise, I'll have to get a paper route or something (not)
kenny- The mkt in the near term is still just a volatile mess but I've been looking beyond that for a while. I've been posting that I was selling puts against C, BAC, WB, and USB over the past month and have brought in quite a bit of premium. I bought back some of them today and am looking to sell them again on any further pullbacks in the banking sector.
You might consider strangles in this environment. They've been working great for me recently. I've had/have strangles on shld, eslr, amzn, phm, erts, sbux recently and am looking at others. I really don't care where things go in the short term with those trades; I just look for "movement" regardless of which way it goes. I already sold the call side of the shld and phm strangles and expect to close the put side of the erts strangle tomorrow. Closing out one side of a strangle with a net profit allows you to have the potential for pure profit from the other side of the trade. GL
"EA is still the most diversified VG company. IRT your Blizzard ref: That's why I'm invested in ATVI..."
I invested ATVI all the way and I shorted ERTS, which helped maximized my gains. What a fun ride!
The question is, what happens in the short term on the macro level with the muni-bond insurers and how does that affect EA? Or everything... Cisco is at $24/share?! come on, logic is gone, everyone is buying bonds like they were flipping homes in Phoenix two years ago...in this environment, who knows what will happen in the short term?!
Sine you like links here's a few:
EA Meets Analysts' Estimates- http://www.thestreet.com/_yahoo/newsanalysis/techsoftware/10401491.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
<<"For the fiscal year, EA guided revenue in the range of $3.462 billion and $3.587 billion, compared to its earlier guidance of $3.35 billion to $3.65 billion.
Net revenue, excluding the impact of the change in deferred net revenue from packaged games and digital content, is expected to be between $3.875 billion and $3.95 billion. By contrast, its earlier guidance ranged between $3.8 billion and $4 billion.
Analysts are expecting revenue, excluding those items, of $3.89 billion.
EA tightened its EPS guidance to range from 93 cents to 98 cents a share, compared with its earlier forecast of 85 cents to 1.15 cents a share. Analysts estimated EPS for the fiscal year at $1.11 a share.">>
--> Those rev reisions were both upward. The eps revision was slightly downward but will end up being higher than the old high end of $1.15/sh.
EA Takes Fantasy Warfare to Taiwan-
<<"Taiwanese gaming maven GigaMedia (Nasdaq: GIGM). That move expanded the reach of the game franchise to the highly active and lucrative entertainment markets in Taiwan, Macau, and Hong Kong">>
<<"When you put that desirable property in the hands of increasingly affluent Asian gamers, the profit potential is simply mind-blowing."
--> EA is still the most diversified VG company. IRT your Blizzard ref: That's why I'm invested in ATVI...
Again, GL friend (keep selling). ;-)
hey einstein even if they didn't defer they would've still missed... moreover, those were revenues expected from monthly online fees that shouldn't be booked until actually had.
they probably delayed those titles because ERTS just sucks a rotten donkey's a$$ at game design compared to blizzard, bungee, take your pick of game houses.
their only real value is their distribution channels.
At least "READ" the link you post b4 trying to spin it. They met the q3 .90 est & guided q4 to .17. People still aren't used to the way they account for rev of online-enabled games. That means they don't report all the earned rev in the 3rd qtr the way they used to. They made the change over a yr ago but a lot of people still don't understand it and don't realize that a lot of their rev/eps gets pushed fwd now. You'll see it cleared up over the next 24.
Here's what that Reuters link actually looks like:
"<<<SAN FRANCISCO (Reuters) - Electronic Arts Inc (ERTS.O: Quote, Profile, Research) posted a 44 percent rise in quarterly profit on Thursday and gave forecasts in line with Wall Street estimates, but shares in the world's top video-game publisher fell 6 percent.
EA said it expected fourth-quarter results to range from a loss of 3 cents per share to a profit of 2 cents per share on net revenue of between $925 million and $1.05 billion in its fourth quarter.
Excluding special items, the forecasts were in line with the average forecast for a profit of 17 cents per share on Reuters Estimates.
For its fiscal third quarter, Electronic Arts said profit excluding special items was $290 million, or 90 cents per share, compared with $201 million, or 63 cents per share, a year earlier and one penny higher than the average Wall Street estimate.">>>
I just hope the sell off stays intact till the open (it probably won't though).
hey corky they warned on both top and bottom lines for next fiscal year...
considering that production delays for at least 2 major game titles are unknown, they could again miss expectations.
ERTS has a great record of overestimating and under-delivering.
rock star & simpsons are the big winners?