Electronic Arts, Inc. (ERTS)

ERTS looks a bit undervalued at around $20. This company is not going anywhere and has a lot of cash reserves if they need it.

Video game industry still booming, holiday season and post holiday season (trade ins) coming up. This time of year is traditionally the weakest for the industry.

They probably will make their own console which will be huge, also FIFA, Beatle's Rock band, plus the profit selling short term calls looks good right now.

They have been beaten down, but they still have the best games out there.

EA develops cheap, buggy, unfinished games and sells them to an undiscerning market; that market may be wiser this christmas season with tight belts around so many families.

TBA 2010 APB(PC) Realtime Worlds(private)
TBA 2010 Army of Two:The 40th Day(PS3.PSP,X360) EA Montreal(sub.EA)
TBA 2010 Battlefield:Bad Company 2(PC,PS3,X360) EA Digital Illusions CE(sub.EA)
TBA 2010 Command & Conquer 4:Tiburian Twilight(PC) EA Los Angeles(sub.EA)
TBA 2010 Dante's Inferno(PS3,PSP,X360) Visceral Games(Sub.EA)/Artificial Mind & Movement(private)PSP
TBA 2010 EA Sports MMA(PS3,X360) EA Tiburon(sub.EA)
TBA 2010 Mass Efect 2(PC,X360) Bioware(sub.EA)
TBA 2010 Rage(PC,PS3,X360) id Software(private)
TBA 2010 Star Wars: The Old Republic(PC) LucasArts"publisher & Bioware(sub.EA)"developer"
11/17/09 The Sims 3: World Adventures(PC,Mac) EA Black Box(sub.EA)/Visceral Games(sub.EA)
11/17/09 Need for Speed:Nitro(NDS,Wii) EA Montreal(sub.EA)
11/03/09 Dragon Age:Origins(PC,X360) Bioware(sub.EA)
10/13/09 Brutal Legend(PS3,X360) Double Fine Productions(Private)
10/06/09 NBA Live 10(PS3,PSP,X360) EA Canada(sub.EA)
10/01/09 Fifa 10(PC,PS3,X360) EA Canda(sub.EA)
09/29/09 Dead Space:Extension(Wii) Visceral Games(sub.EA) Eurocom(???)
09/15/09 NHL 10(PS3,X360) EA Sports(sub.EA)
09/15/09 Need for Speed:Shift(PC,PS3,PSP,X360) Slightly Mad Studios(Private)
08/14/09 Madden NFL 10(PS3,PSP,X360) EA Tiburon(sub EA)
08/04/09 GI Joe:The Rise of Cobra(MobilePhone,NDS,PS2,PS3,PSP,Wii,X360) Double Helix(private)PS2,PS3,PSP,X360 & Wii/Backbone Entertainment(independant)NDS
07/14/09 NCCA Football 10(PS2,PS3,PSP,X360) EA Tiburon(sub.EA)/EA Canada(sub.EA)
07/09/09 Battlefield 1943(PS3) EA Digital Illusions CE(sub.EA)
07/08/09 Battlefield 1943(X360) EA Digital Illusions CE(sub.EA)
06/30/09 Fight Night Round 4(PS3,X360) EA Canada(sub.EA)
06/29/09 Harry Potter and the Half Blood Prince(Mac,NDS,PC,PS2,PS3,PSP,Wii,X360) EA Bright Light Studio(sub.EA)
06/25/09 Battlefield Heroes(PC) EA Digital Illusions CE(sub.EA)
06/22/09 Mass Effect Galaxy(iPhone OS) Bioware(sub.EA)
06/16/09 Tiger Woods PGA Tour 10(PS2,PS3,PSP,Wii,X360) EA Tiburon(sub.EA)/EA Mobile(sub.EA)/HB Studios(???)PS2 & PSP
06/16/09 My Sims Racing(NDS,Wii) Artificial Mind & Movement(private)
06/02/09 The Sims 3(PC,Mac) EA Redwood Shores(sub.EA)
05/19/09 Boom Blox Bash Party(Wii) EA Los Angeles(sub.EA)
04/07/09 The Godfather Part 2:The Game(PC,PS3,X360) EA Redwood Shores(sub.EA)
03/27/09 Battle Forge(PC) EA Phenomic(sub.EA)
03/24/09 Command & Conquer:Red Alert 3(PS3) EA Los Angeles(sub.EA)
03/12/09 Command & Conquer:Red Alert 3:Uprising(PC) EA Los Angeles(sub.EA)
03/10/09 My Sim Party(NDS,Wii) EA Redwood Shores(sub.EA)
02/10/09 Nascar Kart Racing(Wii) EA(sub.EA)
02/05/09 Burnout Paradise:The Ultimate Box(PC) Criterion Games(sub.EA)
01/21/09 Sim Animals(NDS,Wii) Electronic Arts(sub.EA)
01/21/09 Skate 2(PS3,X360) EA Black Box(sub.EA)
01/13/09 The Lord of the Rings(NDS.PS3,X360) Pandemic Studios(sub.EA)
01/13/09 Mirror's Edge (PC) EA Digital Illusions CE(sub.EA)

Currently I own eight stocks. But with Christmas (not to mention Black Friday) around the corner, two of my stocks are Activision & Electronic Arts. The price IS good, appreciate the drop today...I'm happy with my entry point. These companies are so exciting to me for so many reasons...

no merger

Seems like a good offer at current depressed level.

Despite some strong franchises, EA just can't seem to make any money. They've been underperforming the S&P for 3-4 years now and I don't see any recent changes in strategy, management or otherwise that would make me believe they can turn it around.

Follwing Portefeuille12. Electronic Arts almost always disappoints. Its longterm ROE is only 6%, BUT, the company has $8 per share in cash, its' stock price is 80% below peak AND the company typically sells for 5 to 7 times book value and 30 times earnings (or more). The current price is just 1.8 times book value. Gambling that the public will soon love this company again.

a good stock

good

growing video game industry market share is apparent

Nothing new in quite a while. This is a volatile market where new ideas or expansion of popular old ones can make or break you.

wishful thinking...

1. Console hardware price cut is nearing and would be a huge catalyst
2. Solid franchises in sports game
3. Online game biz model would create stable cash flow stream

MADDEN 2010 COMES OUT SOON

ERTS will recover. They made an absolutely outstanding buyout of Mythic Entertainment, the maker of the legendary MMORPG DAoC. I personally played this game for 2 years and it was incredible. Their recent release of WarHammer is getting more and more WoW converts on a daily basis.