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URL:  http://boards.fool.com/hi-awesomestockdude-thanks-for-pointing-those-26430745.aspx

Subject:  Re: Stock of the Week: Activision (ATVI) Date:  2/29/2008  8:55 PM
Author:  Jognils Number:  2008 of 2674

Hi Awesomestockdude,

Thanks for pointing those statistics out! Yahoo Finance is good, but it can be frustrating when you can't get the time frame you want. I've been looking at the EDGAR website TMFGebinr showed me/us a few days ago (http://www.sec.gov/edgar/searchedgar/companysearch.html), and you can get a lot more complete information there if you're willing to sift through all the useless text in the quarterly (10-Q) and annual (10-K) forms.

I think I've found a reasonable cause for the 2006 drop in profits. There's probably more specific information I haven't found, but maybe we can find out together. If you follow the link and put in Activision's ticker symbol, it will pull up a list of results. Then in the "form type" box, type "10-k" to pull up only the annual reports. Find the form published June 9, 2006, then click the first document link on the following page. Got the form? Great!

Now scroll down to page 31, about a quarter of the way down (I never realized how long these reports can be!), which is a common-size income statement comparing 2004-2006. A common size statement has a column in terms of money like a regular income statement, but it also has a column that shows each item as a percent of sales or revenue, which can be helpful for year-to-year, or horizontal, analysis. Now our job is to figure out which item(s) grew faster than sales and took away from net income. Let us know what you find!

Jognils
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