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Technology Stocks : Activision....Returns!
ATVI 94.420.0%Oct 13 5:00 PM EST

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To: vc21 who wrote (785)1/3/1998 6:52:00 PM
From: Tom Caruthers  Read Replies (1) of 1992
 
Hey Vic,

If you followed ATVI more closely like you follow THQI, then you
would realize that most of ATVI's releases came in this last quarter.
Then you would also realize that a P/E of 45 doesn't really mean that
much given that most of ATVI's revenues AND earnings will show up in this last quarter. For 9 months, ATVI's made $1.3 million. Nothing
to write home about. But when you factor in Q2 sales, etc., I think you'll see net income soar in this last quarter.

MSFT is forcasting slower growth, and as such, certainly doesn't
deserve such a lofty valuation...Don't get me wrong, it's a great company, but when growth starts to slow, you can bet your bottom that
the stock will drag too.

ERTS? Well, what bad things can I say about them?

Don't come pooh-poohing the stock until you've dug a little below the
surface and stopped looking at P/E values as the end all/say all to overvaluation.

Tom C.
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