Thanks Bleeker,
I have stuck my neck out several times over on the THQI thread to state why I don't think THQI is viable in the long-term. I will stand by my remarks. But I wish you a lot of luck in all of your investments in any case.
To me, ATVI is a company plagued by poor margins. That is their problem. I'm not just coming to this realization now.
Message 3242619
I don't know what the actual problem is. It seems that Marketing has chewed up a lot of potential profits and I'm not sure it has helped sales that much. IMO, they should get a new Marketing director who actually knows what he/she is doing. They are obviously doing something wrong over there and some heads should definitely roll.
If ATVI had the same margins as other industry players...ERTS mainly, and yes, even THQI, the stock would have been at $30.
I read in a question/answer session with Bobby Kotick that he
fully anticipates that ATVI will be able to achieve or surpass ERTS
operating/net margins and that they are well-positioned to take ERTS head on. Of course, today's announcement makes me wonder whether or not he's being serious...because today's announcement took me by surprise, obviously all of the analysts by surprise, and most shareholders by surprise as well. (Obviously, it did not take insiders by surprise which accounts for their mass selling in late January.)...or whether or not he is actually capable of delivering the goods.
Never take insider trades by multiple execs lightly. Whenever I have discounted them, I have been badly burned
But I stand by my overall analysis of this company. I feel that in general games companies will do well given the new sub $1000 computer paradigm, cheaper game prices, and online gaming. I believe that ATVI has the infrastructure (in terms of production capabilities, programming talent, quality titles, distribution) to capitalize on the growing trend for online/multiplayer gaming. I still respect Mr. Kotick but I feel misled and cheated somehow, and yes, it will take some time to renew my faith in management.
Tom C. |
