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Birds of a Feather / Teens and Their Money


Subject:  Re: Stock of the Week: Activision (ATVI) Date:  3/8/2008  6:01 PM
Author:  awesomestockdude Number:  2057 of 2683

Guessing that we are done with ATVI, I will wrap it all up. The company surely is great but still has its own risk. It is second in its industry but with ERTS being extremly overvalued they may jump to the head in the future. It won't be soon but that means that they have a lot of space to grow. They have had several top selling games and one of their largest struggles will be to keep on coming out with games that people will buy.

In 2005 their net income fell a huge amount when sales came out a lot lower than expected, but if I remember correctly it was from the upgrading of game systems and people were waiting for the other games for the new systems to come out. They are quickly making up lost ground but they are still below what they were in 2005.

The company has no debt which is great. It's Return on Equity (ROE) is around 17% which isn't bad at all. They should be able to make it through any hard unforseeable times they may have without going under. They are definitaly making money off of their sales and are doing a better job of keeping cost low. They had an amazing fourth quarter and a pretty good year. I'm sure that in the future they will continue to do good unless some bad unforseen thing happens, which I think doesn't have much of a chance of happening. We will know more when their quater ends at the end of the month.
That's what we all discovered from our research on ATVI. When we all work together we get more done so keep up the good work! I tried to keep it as simple as I could and if you have a question or want to add anything else in, feel free to do so.

Fool on,

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