Two months ago. Sold down to ridiculous levels, ME3 ending stupidness, rated Worst Company for 2012 beating out BOA stupidity, SWTOR media blackout, etc.. "Buyout by private equity firm like Blackrock". -monkabc3-
You were warned. People selling at $11. People calling single digits. I suggest handing over your portfolio to a professional because you suck.
Even if this doesn't go through, enough eyes have been turned to EA PPS to see a growth company that is actively changing with the industry to remain profitable whose stock has been beaten down by Zynga failing and over-hyped expectations for a single product release all the while ignoring the companies diverse portfolio and recurring revenue. Bye stock jockeys, hello fund managers.
If hadn't been for several rounds of government intervention, market would have crashed badly 2 years ago. We're still on life support and whether that will continue to happen is everyone's guess.
EA is best positioned for growth in this sector. It has quality franchises and big mobile and digital exposure. I think therefore the buyout rumors are legit and there`s probably more to come on the issue. There`s good growth in the mobile space and EA stands to profit most from it so as I was saying, it makes perfect sense from a takeover perspective.
Cramer and Faber from CNBC crew claimed sources told them Providence was not involved but haven't said anything about KKR(not that Cramer has much credibility anyways). KKR with famous Kravis onboard has a history of big leveraged buyouts. Paying few billion for EA would be peanuts for them. To those not familiar with Kravis, I suggest you watch "Barbarians at the gates" movie based on a true story regarding Kravis` leveraged buyout of RJR Nabisco.
Another interesting development is Kyle Bass initiating a big brand new position in EA as was disclosed recently. EA makes up 50% of his fund holdings so he made a big leap of faith jumping in with both feet. To those not familiar with Kyle Bass, he`s one of those who made a fortune betting on the 2008 real estate crash by shorting CDOs. So this is not your typical bullish investor. If someone were to be cautious of a market crash, it`s this guy.
I made great money on EA in 2011. 15 to 18.50, 18 to 21.75 and 21 to 23.50. But I did get caught at 23 in the rapid fall from 26 to 17. Talking about the perfect storm... SWTOR hype plus Zynga debacle plus NDP reports and media regurgitating the "dead gaming industry" news over and over. Too bad nobody paid any attention to EA's $1.7 billion digital growth.
You too baudolini and good luck to you in your trades! I am a range trader and EA has lost it's range and is out of control right now so my trading strategies don't apply to this stock. Not big on shorting, but I sure missed out on FB and Zynga because I saw those coming but did not act.
You both can be right, and in fact everyone should be following the trend up and down to make money. Tying yourself to only long and only short limits half of the potential.
I'm short from 14.25 yesterday, as I believe the news is totally false and simply someone playing games. I plan to cover at 12 sometime between now and October.
I also bought the October 14 puts when they were cut in half yesterday and the December 14 puts at deep discounts. In at .77 and 1.55 respectively.
That's where I am. Too many questions with the gaming industry, bad quarter coming up, no new consoles, games delayed, market creeping up on paper-thin volume and the election upcoming, the fiscal cliff thereafter, europe is a mess (no one seems to care for the last two weeks) and the looming fear of Israel attacking Iran.
I will continue to look for shorts. Mostly playing fb puts. Keep rolling them over as I hit my profit goals. 1.2 billion shares unlocking in November. Perfect storm...
For those that haven't followed this stock or the posts of this individual for long, this guy, along with his cohort Dale53, was talking up EA to no end at levels much higher than this. Claims that SWTOR and ME3, etc., would take the stock to the high 20s were flying fast and furious.
The facts are clear: Until EA cleans out the corner offices and acquires a management team that 1) Knows how to succeed and 2) Demonstrates to Wall Street that they know how to succeed, caveat emptor.
My guidance now is the same cautionary tone I deployed when the unwashed were claiming SWTOR would challenge WoW: Do your homework.
Austin the quintessential basher of EA. No, I don't pump EA I did agree with some back in November that EA could go from $23 to $26 or $28. It didn't, I paid the price.
Selling at $11 were you? Sour grapes? I've got the nerve because I said this sell off and UNBELIEVABLY poor promotion, marketing and public relations, a virtual black hole of corporate response to every question about the company while the stock got destroyed from $23 to $10.77 made no sense.
Doing a press release from the Austin Studio that SWTOR has achieved 1.7 million subscribers on the day where 2 hours prior that exact information was released in the earnings call. People were waiting for that information for 3 critical months while the stock got pummeled on negative speculation.
There is only one reason a company as mature as EA screws up that bad. They are wanting to go private. That is why I posted that through all of this ridiculous unexplainable poor PR or entire lack there of did I think that a private equity firm like Blackrock would be a likely candidate for a buyout vs. Apple or MSFT or GOOG or Disney buying them in that discussion thread.
What do you offer this board other than "EA sucks", "Ea Management sucks", "EA is a single digit stock"? That's my nerve. Point out that Buy low sell high is a good investment strategy when the stock is at a 20 year low? That is bad advice? Go be a troll somewhere else, you offer nothing to the community here.