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Wednesday, February 10, 2010

blizzard Stock Pick to buy during the blizzard of 2010 ! ( Electronic Arts Inc. (Public, NASDAQ:ERTS)

Electronic Arts Inc. (Public, NASDAQ:ERTS) 15.96 a share / target price 24.75 by 2/2011

Electronic Arts Inc. (EA develops, markets, publishes and distributes video game software and content that can be played by consumers on a variety of platforms, including video game consoles, such as the PLAYSTATION 3, Microsoft Xbox 360 and Nintendo Wii; personal computers (PCs), including the Macintosh; handheld game players, such as the PlayStation Portable (PSP) and Nintendo DS, and wireless devices, such as cellular phones and smart phones, including the Apple iPhone. The Company’s products for videogame consoles, PCs and handhelds are delivered on physical media (disks and cartridges) that are sold at retail stores and through mail-order (packaged goods products). Some electronically delivered content and services are add-ons or are related to its packaged goods products (add-on content or matchmaking services); while other games, content and services that it offers, such as games for wireless devices, and Internet-only games, are available only through electronic delivery.ERTS sunk -8.8% after the video game maker offered a weak outlook. For fiscal Q3, the company lost -$82 million, or -20 cents per share, compared to a year-earlier loss of -$641 million, or -$2.00 per share. Adjusted EPS fell to 33 cents from 56 cents. That was 2 cents above analyst estimates after the company had warned it would miss prior forecasts. Revenue tumbled -25% to $1.24 billion. For fiscal Q4, the company guided for adjusted EPS of between 2-6 cents on revenue of $800-$850 million, well below Wall Street estimates for EPS 13 cents on sales of $851 million.My among their top-15 holdings at the start of Q4. Buy on the way down !! EA has been in a large-scale restructuring effort designed to reduce costs and improve the quality of game releases. The December quarter showed a large improvement on this front, with operating expenses reduced to 56% of total revenue compared to 62% for the same period the previous year.But they also recently acquired Playfish, a leading social gaming company, and they have a large footprint in the smart-phone app market, which is set to keep expanding in the foreseeable future. In addition, there is plenty of cash on the books, so I see a great opportunity in ERTs by Dec. 2010 and into 2011 ... On the long run the game industry is booming and therefore EA should be one of the outperformers for the coming years. The company also still holds dominant hard-copy video games, including Madden, FIFA, NBA Live, Need for Speed, NHL, etc.. And with a recent announcement Of NBA JAMS , coming out in DEC. 2010 , This should be a huge success for EA Sports !Longtime designer Mark Turmell has joined Electronic Arts' Tiburon studio as chief creative officer just as EA announces a reboot of the classic sports game he created, NBA Jam.

"I couldn't be more excited to have this all kind of coincide with my arrival," Turmell -- who also co-created Smash TV and NFL Blitz -- tells Gamasutra in a new interview. "[The game's] fundamentals are great, but of course, it's 15 years later. There's certainly a lot of additional effort and enhancement that has to happen."

At Tiburon, Turmell will primarily work on the Madden and NCAA franchises, but he's consulting on the new Wii-exclusive NBA Jam (pictured), which is in development at EA Vancouver: "I'm looking at that product every week," he says. "I've sat with the team extensively, and I'm close to the product."

The original NBA Jam team was just ten people. At the time, Turmell coined the title's signature over-the-top basketball gameplay just by experimenting.
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