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

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To: Tom Caruthers who wrote (793)1/5/1998 3:37:00 PM
From: vc21  Read Replies (2) of 1992
 
Tom,

Regarding five buys and sells for each. I have already done it on the THQ board. I will probably not do it again publicly. Anyway, I don't think I would "play" ATVI anyway because I like trends, not ranges. You guys are definitely in a range. THQI was in a bullish trend but that MAY be over today. We will have to see. I will try to keep an eye on ATVI. I may even post THQ picks here for you guys.

Overvalued? Currently, ATVI is overvalued based on trailing PE. Looking at FY 98, things do brighten up a bit if you in fact make .87c for the year. I'd say a 19 forward PE is not bad. There is some funny stuff on the B/S however. I say overvalued because it does not deserve a higher PE than EA. C'mon, you guys hardly sell console games. You took a bum deal with id which will still make you some coin but don't think that Q2 is the savior you all make it out to be. You will say 50% of our sales come in the 3rd Q. Yes, but the same is true for all game companies, (calendar 4th).

Arrogance? Hardly. I was just trying to give you guys a reason your stock fell. It also seems that someone downgraded last week. In truth, that was probably the real reason for the fall.

Regards,

Vic
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