The fundamentals still "feel" ripe for Boo but the charts suggest keepin' stops tight
We chatted about my Boo-ish bent in the entertainment software names earlier this week. While the stocks have worked lower so far, if this year has taught us anything beyond the importance of finding a mental Happy Place the lesson has been to not be piggy about any gains you're lucky enough to find on your sheets.
After re-sizing up our fundamental picture (and the Street's view of same) post-ERTS guidedown, my hunch/ opinion/ anything-BUT-advice is that the bulls are in the denial stage of loss regarding the mid-term fundamental challenges facing ERTS and the game-space in general during the console transition.
Changing names within the space, I would offer that the research consensus regarding the forthcoming release (Oct 26) of Take-Two's "Grand Theft Auto: San Andreas" is that it will be The Biggest Game Event EVER". Given that this is the third GTA release for the PS2, the quantity of GTA-rip-offs we've seen since "GTA: Vice City" and the age of the underlying console, I'm rather genetically inclined to fade that consensus with a dark-side bet.
Misguidedly piggish or wisely aggressive? Let's check the charts:
* Charts courtesy of Bigcharts.com
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter