And how will the new AA+ S&P rating effect EA and/or the market?
Just saw the news flash that S&P has downgraded the US credit rating to AA+. Thoughts and comments on how this may/will effect the overall market and EA in the near and further future are welcome. Interesting topic for discussion. dales53
to say the least all the hard work the stock has put in from early Feb at $15 to $25 has just been punched in the gut by this sovereign credit debacle. frankly I think ERTS fundamentals have only been getting better last 2-3 months. this company is on track to do $850m in Ebitda next fiscal year which puts this thing close to 5.0x EV/Ebitda - a complete total steal of a valuation given structural catalysts over next 12-14 months.
ALL fundamentals went out the window during the "Great Recession" of 2008. SanDisk trading at $9, back to its normal $45 range a couple weeks ago. The world went nuts and peaked March 9 2009.
During historical moments like the US losing its AAA rating and gold jumping to $1700 an ounce and the ^VIX at 39 and you are still pumping an equity based on its fundamentals?!!!! Are you crazy? Wouldn't you want to be all cash during times like these? I think 99.9% of the investment community would be. It is the big crash all over again and you want to be IN the market?