I have just made large investment at $12.12.
The last quarter $189mil net profit places stock at $16.00 in 2 weeks due very reaonable P/E.
Cash position is one of the stongest in the market with very low down size risk.
Hevy buying today is a bellweather for this stock.
Lone Cypress Analyst
I sold last week at $12.70 and bought back this week at $11.40.
I was quite amazed when it went down today. The volume has been incredibly high this week and it makes me wonder what is going on.
I am trading this baby now. I am worried someone knows something i dont know.
The next month is going to be a "swing" time. Where are earnings headed?
ATVI's first quarter was great - what could possibly hold them back!
Be careful out there- these are very tough times to read!
I sold 2/3 of my position at 12.39
Look forward to buy back lower, so I hope your prediction is way off :)
BTW: I have to trade in and out very frequently because the american dollar is killing every gain I made, so I have to cut a little positions where I am in the green (to limit the erosion by the shitty dollar) and buy new good positions (like ATHR today) to take advantage of the shitty dollar for the future, hopefully).
We are around a 4 months low for the US$, if I'm not mistaken.
Really hard to trade stocks with a falling currency, but possible. Buy and hold is impossible though, and that's a pity, especially when stocks like ATVI are involved.
The Italian Lira has been weaker than the dollar ever since the Napoleonic era and that's because the North of Italy was owned by France. Now Italy switched to the Euro and the only reason that isn't screwed up yet is because of productive countries like Germany and Sweden. Italians shouldn't throw stones at the dollar, it just shows how uninformed you are.
I'm long on ATVI, but your analysis is way off. You can't expect a stock to 'correct' a low p/e in two weeks or because of earnings that were released weeks ago.
Neither of those things is a reason to predict a price of $16, and certainly not in 2 weeks.
ATVI will beat the market over the next 12 months, and has a chance of almost doubling in that time based on it's upcoming lineup. But there is nothing that is going to cause it to jump that much in the next two weeks, especially not a P/E and earnings that have been known for weeks.
I respect your point, but i disagree.
Their has been a lot of investment in financials, industrials and commodities which i belive is a little early.
Activision is in much better shape for a quickaer sustained run up.
In addition, we are now entering a bull market and long term investment will be allocated toward sustainable, less risky stocks.
SG&A and R&D are very much under control at Activision, this is key for them. Recent fear in this sector relates to xbox type platform updates; several in the industry think these upggrades through R&D are just another opening for the gamemakers and only make the future look brighter and will trigger replenishment of player game inventories; without the cost of the player platforms themselves.
I appreciate your thoughts and am actually happy to see someone that can reply to this board with more then 3 words.
Lone Cypress Analyst