Varchild lowers opinion on (ATVI) Activision Blizzard to HOLD
ATVI is overbought at the current level. It recently touched a $13 handle and retreated to $12.39.
Even at $12.39 this one's overvalued.
The Video Game Sector is a mess. Everyone's underestimating the economic impact to Young Dudes. Young dudes aren't crowding the video game stores like they were last year.
Last year when I walked into a Mall.... There was no one shopping except for Aeropostale, Hot Topic, and Gamestop. Venture elsewhere and you got "Scary Silence."
Now... Things have gotten spooky at Hot Topic...Frightening at Gamestop...and Bizzarre at even Best Buy.
Granted... I can't testify that my opinion is worth anything. It's not based on statistical fact.
It's based on my personal experiences throughoug the months of MAY & JUNE.
My Recommendation though is a $10.00 PUT option on ATVI for JULY or AUGUST.
I'm not saying everyone needs to dump their shares... My rating is a HOLD for an important reason....That being that a recovery will happen eventually....But right now...where the *&^% are the Summer Jobs for Teens? No Summer Jobs....No Video Game buying!
1) Origins of Wolverine Sales? Disappointing in my opinion especially considering the excellent review ratings + quality of the title.
2) Prototype? I see a fully stocked shelf after fully stocked shelf.... No one is buying....I think this one disappoints.....Inspite of an excellent review from Gamespot (8.5 / 10).
ATVI will be a Q2 earnings MISS in my prediction....opinion...
I'll stomache that miss once I figure out how OPTIONS Work as that still is beyond me and for whatever reason no Investor including Dave and Tom Gardner want to explain how Options work without charging a FEE.