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Electronic Arts Inc. (ERTS) Message Board

  • liem887799 liem887799 May 22, 2000 8:05 PM Flag

    Longs are getting burned by the

    range in the ERTS stock price...Best bet to pick around $50 a share...

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    • You are right on the money. I have been writing
      covered calls all along with the piece de resistance
      being the May/00 $120's at 7 7/8 when the stock was
      trading in the $90 range. Bottomline, no downside risk
      and cash on the barrel head. Just did 1000 shares on
      June/00 $85 for a nice and tidy profit. You can play this
      game the other way without being the harbinger of
      gloom and doom like some of our friends on this board.
      Quite honestly, I don't know how anyone can be bearish
      on this stock given the fine points you made along
      with the fact that the NASDAQ was at about 3000 a week
      ago. Nsthil was shorting when it was in the $50-$60
      range. Thats gotta hurt!

      A sideways churn back
      down to the $50 range is possible when the next few
      Qtrs #'s come in, but it may be possible that the PS2
      hype keeps the stock somewhere in its current range.
      Remember the old adage, buy on rumor, sell on the
      news...well we are solidly in PS2 rumor
      territory.

      EA's Q3 and Q4 2001 (Oct-March) will show a huge
      upswing over the previous qtrs. By that time everyone
      will have forgotten the poor earnings and this stock
      will be headed back to the $100 territory....and we
      don't have that far to go.

      BTW, don't think that
      there is much of a chance of MSFT or AOL buying ERTS.


      ERTS Long.

    • AOL has ERTS already committed to a multi year
      deal and ERTS is forking out the dough for it. They
      have the access and ERTS wants it. ERTS has the
      content but they are not the only gaming company out
      there.

      As for MSFT buying ERTS that wont happen either.
      ERTS would be a basket case for a while as they have
      committed too much resources already developing for Sony.
      ERTS pretty much in Sony's back pocket.

    • Here are a few other scary scenarios for an ERTS
      short.

      1. MSFT buys ERTS to guarrante success of the XBox
      and deal a blow to Sony in the process.

      2. Or
      a deal that makes more sense. AOL / Time Warner buy
      ERTS following their own merger. If the gaming channel
      is a success this is not too far fetched. AOL might
      finally buy something of long term value rather than
      wasting money on things like ICQ and
      WinAmp.

      Zombie

    • strategy if you are a long term bull. Selling someone that call premium this morning would have been nice.

    • I am an ERTS long and like you believe the stock
      will be going down some in the summer. How much I
      don't know but not enought for me to sell. I'm loving
      the volatility, I've been making a killing on covered
      call writting over the last 5 months or so.

      It
      is quite temping to sell my long shares now, but I
      will be rewarded in the end.
      The end result is I
      sell my long shares sometime in 2001, and bank a big
      pile of long term capital gain.

      Regarding your
      short position, I think it is logical but quite risky.
      People buying ERTS right now know darn well the next
      couple quarters are going to be tough, but they are
      buying anyway. Like myself people want to be on board
      ERTS when:

      1. PSII is launched.
      2. EA.com
      and the AOL game channel go live.
      3. When AOL
      offers the gamming channel to 20 million or so Time
      Warner customers, via web enable set top boxes. :)
      4.
      When the investing community realizes that
      entertainment content on the new AOL/Gateway/Transmeta platform
      is already a lock for ERTS :)

      Zombie

    • example of how you guys lose long term. You are
      out there covering your ass right now. Anybody who is
      shorting this stock in the $50-$60 range simply does not
      understand this business nor the market. This is why I
      recommend that absolutely nobody should follow your lead.
      You are a source of good advice however if you follow
      one simple rule, whatever you do, do the opposite.
      Cheers.

    • fight the tape but I do not believe that ERTS
      will continue along with the momentum. No need to lose
      money on this short because the fundamentals are still
      not good for anothe 2 qtrs at least.

      Congrats
      to anyone that went long in low 50s and held on.

    • swallow your pride & stop shorting for a little
      while.You must learn to identify a momentum
      shift...analysts are pumping the market up right now...saying
      things like "the summer rally is here".I do believe that
      we will see another rate hike in June...feds r
      hating this rally right now!! You may never go long on
      ERTS...bECAUSE u might never see the 50s again..analysts will
      keep the market pumped up for now.Most of the good
      stocks r up 30-40% in less then a week..with little
      selling

    • Jim Jubak, MSN MoneyCentral.com talks about the
      stocks of the
      day
      http://pub10.ezboard.com/fstockpicksstockpicks.showMessage?topicID=302.topic
      ERTS in playstation 2 release. Stocks to go to $85 in
      first half of 2001

    • ERTS is up less than 10% from last entry point on
      the short side. Hardly cold sweat material. If you
      made 19k buy getting in at the bottom then congrats to
      you. This will be the third time shorting ERTS in the
      last 3 months and I have made 25-35% each time. Maybe
      I will have to take a loss this time but I doubt
      it.

      Best of luck

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