Yes. Should retrace to about 14 at a minimum. The stock is slightly above key resistance but the move above came on no volume. POS company has no good games coming out and the industry is dying (tablet, phone games etc. are not very profitable). G&A costs are a nightmare.
I am short in the high 14s, both the stock and naked DEC 15 calls.
"POS company has no good games coming out". Can you explain this? They make $4 billion a year. Year after year. They have the most diverse portfolio of games across every platform. POS? "No good games". You mean like FIFA, Madden, NHL that consistently produce massive revenue year after year with little development costs? Maybe you mean no new excellent IP... like BF3? You sound like a WOW and COD fanboy, EA hater. All things come to an end and ATVI (see guitar hero) will have it's day. It isn't diversified enough unlike EA.
I think it's a mistake to short the company unless it's a very short term play. The Xbox 720 comes out next holiday and that's going to generate the kind of sales that the gaming industry had needed for the last couple of years. Even if no games are coming, I'd expect hype from the Nextbox to trickle down into the developers/publishers.
I'm long. Good company, got WAY WAY WAY oversold because of one "failed" over-hyped launch, ME3 ridiculousness and the big one, Zynga IPO its social gaming hype. EA has been rising since it's 20 year low that was reached back in July. It is going to have a very mediocre quarter with no big launches but when it tells us that in January, it is going to be forecasting 3 big launches which will make the upcoming quarter look good which is all anyone cares about, not the past but the future. Going farther out, you have Sony and MSFT showing off their new consoles at E3. The video game sector will light up once again. Tabs are so cheap now that everyone and their dog is going to have one this Christmas, EA is nicely positioned to leverage that.