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$43.98 0.36 (0.83%)
7/3/2008 1:00 PM

Electronic Arts, Inc. (ERTS)

CAPS Rating:
***

The Company develops, markets, publishes and distributes interactive software games that are playable by consumers on video game consoles, personal computers, mobile platforms and online.

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Avatar TMFBreakerDave (98.66) Submitted: 4/12/06 8:14 AM : Outperform Start Price: $54.42 ERTS Score: -17.26

Electronic Arts remains the clear leader in interactive entertainment, one of my favorite industries, probably the one I know best. While I can demean EA's lack of creativity, as a "new" title to them rarely gets more radical than, say, reinventing "The Godfather" as a videogame, their unequaled sports franchise is a cash machine that has rabid fans re-upping every year for the next Madden, the next NBA game, the new college football version for the new season, etc. This company has lots of cash, no debt, very strong competitive positions, as resources to grow properly for the next decade plus. It's not the dynamic growth stock it once was, now at a market cap of $16.5 billion, but I think ERTS is a near sure bet to beat the market averages over the next decade.

"Spore" will be a new release to watch later this year, from Will Wright, creator of the Sims games.

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Avatar rogerwho (56.50) Submitted: 4/09/07 7:27 PM

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Watch for "Spore" is an understatement. "Spore" may be the only sign of creativity at EA - but rest assured, EA has found its next franchise. If anyone hasn't yet seen what Spore is about check out the trailers and videos of Will Wright's demos on the web.

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Avatar darkflame (99.08) Submitted: 5/15/07 11:44 AM

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How about valuation ? I wish anyone could explain me how can ERTS have a P/E of 193 and still expect it to be a good investment.

I had ERTS a while ago, sold it with a profit and now that it is cheaper and underperforming the market for a while I am thinking of jumping inside again...but a bit of margin of safety would be nice and I really don't understand how can this company hold such a high P/E for so long. Am I missing something ? Would someone explain it to me ? in finance.yahoo.com I only have data from 2004 on, and that didnt give me a clear picture of the future.

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