November 3, 2008

Keep an Eye on Electronic Arts

The Stock Masters tells us why we should keep an eye on Electronic Arts.

While I agree mostly with the article, I must wonder why this company fails to execute on the earnings front. They sell a respectable amount of games and have quite a few exclusive licenses for intellectual property. Are they blowing their earnings on too much free soda for their developers of what?

Two articles have mentioned the buyout word recently (here and here). And why not? With the stock in the 20's, buyout rumors begin to surface when a company's stock price gets so low that it begins to entice other companies.

This could be a great opportunity for investors and/or another video game developer. With The Old Republic MMO now officially announced, EA stock could be poised for a great rebound in the years to come.

For more on ERTS, see the article that I wrote for Seeking Alpha and why I was bullish on the companies prospects.

No comments: