Someone mentioned ATVI the other day. I am outta here for tonight. See ya.
Activision (ATVI) 15 1/2 +7/8: While it has been a pretty weak day for the software stocks, publisher, developer and distributor of interactive entertainment and leisure software, Activision, is bucking the industry trend after impressing investors with its latest earnings report. For its fiscal second quarter, Activision posted net income of $1.1 mln, or $0.04 per share, two cents ahead of estimates and well above the $0.10 loss it reported in the yr-ago period. Revenues soared 74% to $115.4 mln with recent acquisitions and strong growth in its publishing operations driving the increase. While Windows, UNIX, Solaris, and Linux are some of the better-known operating systems, Activision is a company that relishes in the market's acceptance of titles such as Tony Hawk's Pro Skater, Quake II, Space Invaders, Cabella's Big Game Hunter III, and Blue Stinger. Judging by the noticeable improvement in Activision's top-line, the market is liking what it sees these days and that is being reflected in Activision's stock price which is up 66% from its 52-week low of 9 15/16. Excitement over the debut of new consoles from Sega and Sony have also acted as a positive influence on the stock as have expectations for strong sales during the holiday season. In fact, Activision's CEO has suggested this will be the "...best holiday season in the history of our industry." Today's gains notwithstanding, shares of ATVI are down about 13% from their 52-week high of 17 3/4 reached last month, but even so, the stock has maintained a bullish posture with a pattern of higher highs and higher lows. Having found support at its trend line, we would expect today's earnings news to help catapult the stock to the top of its channel with a test of 19-20 over the next 3-6 months. -- PJO |
