For further info, check out Yahoo and profiles.
Due to room constraints, I'll just present how much it would cost to
buyout each of these companies (Market cap-cash) at today's price.
In MPRS' case, a rough estimate of its balance sheet would add $23
million in debt to the purchase price of the company.
EPS is given to show relative profitability. Most values are in
millions. Note: The majority (88%) of THQI's earnings last quarter
were from WCW products...will not recur next year. Last year,
roughly 40% of revenues came from WCW products.
I believe these numbers to be correct, though there could be errors.
Company Stock Market Shares Cash/ Book Market EPS
Cap outst share Value cap-cash
ATVI $11.13 222.6 20.0 $4.6 $5.17 131 0.50
BROD $17.31 360.4 20.8 6.6 $7.68 223 (0.23)
ERTS $48.69 2,884 61.1 4.8 $8.87 2,591 1.22
MPRS $1.88 53.7 28.6 0.8 $0.08 76 (3.55)
GTIS $10.00 679.9 68.0 0.6 $1.98 630 (0.37)
MWY $18.30 705.0 38.5 1.5 $4.32 647 1.15
THQI $25.75 177.4 7.5 2.9 $4.95 155 2.09
I will argue that THQI will be unable to maintain its rapid growth
and profitability in the future due to increased internal product
development costs, increased competition in consoles, risky nature
of its business model.
You will see that only BROD, ATVI and MWY are reasonably priced for
what they offer. BROD, I will argue, needs to make an acquistion,
due to lack of titles in its pipeline. ATVI, given the strength of
its internal titles, pipeline, financial strength, is clearly cheap.
If ATVI can improve margins to match industry leaders and focus on
getting the most out of each release, I think we can easily see
upwards of $20 with valuations closer to ERTS.
Failure to include EIDOS was an oversight.
Tom |
