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Activision Blizzard, Inc. (NasdaqGS: ATVI )
You probably heard of guitar hero or maybe even world of warcraft. These are both two of the more popular products of Activision Blizzard, Inc. (Stock Symbol: ATVI ).
They categorize ATVI as a retail stock. Though this is not a retail company otherwise I would not be excited about it. Sure ATVI has retail products such as guitar hero and video games such as Kung Fu Panda. Though those are good products and provide a good revenue stream to the company they are subject to some risks in competition and a slow down in retail buying. The part that excites me about ATVI happens to be their biggest revenue stream but wall street has not given credit for it, not yet anyway. This is good because the stock does not reflect all the value and strategic moves ATVI has made over the last six months. It all got overlooked because we went into this huge recession and the stock sold off with all the other retailers.
ATVI is NOT a boring retail company. It derives most of its revenue in an online global phenomenon that would blow you away how profitable and the potential for future growth in this form of gaming has become. Their most popular online game is called, World of Warcraft. This is a game people all across this country are getting addicted to and country by country it is becoming a global phenomenon as well. It is played by people ranging in age from 12 to 60 years old. It has over 12 million monthly subscribers, World of Warcraft is currently the world's largest Multi-player role playing game in those terms, and holds the Guinness World Record for the most popular Multi-player role playing game. In April 2008, World of Warcraft was estimated to hold 62% of the Multi-player online gaming market. They are expanding globally at mind blowing pace. At some point, ATVI will get more notice from Wall Street and the stock will reflect their true value. The idea is to get in before that happens. As I write this report it trades in a range of 10 to 12 dollars per share. I would be a buyer of this stock all the way up to 15 dollars a share. Not saying it is bad to buy it higher than that. Just telling you what I am doing and I don't know when you are reading this so it could have made a huge run already.
Besides my gut feeling and intuition on the market developed over years of being obsessed with it. Let me show you some of the research which further excited me about this company.
The Company Profile (courtesy of Yahoo finance):
Activision Blizzard, Inc. operates as an online and console game publisher. Its products include Guitar Hero, Call of Duty, and Tony Hawk, as well as Spider-Man, X -Men, Shrek, James Bond, and TRANSFORMERS. The company's product portfolio also comprises various franchises consisting of Crash Bandicoot, Spyro, StarCraft, Diablo, Warcraft, and World of Warcraft. It has operations in the United States, Canada, the United Kingdom, France, Germany, Ireland, Italy, Sweden, Spain, Norway, Denmark, the Netherlands, Romania, Australia, Chile, India, Japan, China, Taiwan, and South Korea. The company is headquartered in Santa Monica, California. Activision Blizzard, Inc. is a subsidiary of Vivendi.
Activision Blizzard, Inc.
3100 Ocean Park Boulevard
Santa Monica, CA 90405
United States
Web Site: http://www.activisio <wbr> </wbr> nblizzard.com
Key Statistics:
Income Statement
Revenue (trailing twelve months): 1.89 Billion
Quarterly Revenue Growth (year over year): 118.10%
Gross Profit (trailing twelve months): 1.25 Billion
Balance Sheet
Total Cash (most recent quarter): 2.94 Billion
Total Debt (most recent quarter): 0
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ATVI:
This call was made
on 01/05/09
@ $8.69
| Rating: |
$8.69 (01/05/09)
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| Closed: |
01/20/2009
@ $9.38
(+7.94%
in
15 days)
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| Target: |
$18.00
(+107.13%)
in > one year
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| Allocation: |
20.0% of portfolio
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