The Motley Fool Discussion Boards

Previous Page

Birds of a Feather / Teens and Their Money

URL:  http://boards.fool.com/guessing-that-we-are-done-with-atvi-i-will-wrap-26454066.aspx

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 wi