Contrarian Stock Market Investing News - Featuring Bargain Stocks » eletronic arts http://www.contrarianprofits.com Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Mon, 10 May 2010 15:10:45 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 Make 20% by March as Electronic Arts (ERTS) Tumbles http://www.contrarianprofits.com/articles/make-20-by-march-as-electronic-arts-erts-tumbles/12856 http://www.contrarianprofits.com/articles/make-20-by-march-as-electronic-arts-erts-tumbles/12856#comments Tue, 03 Feb 2009 19:46:16 +0000 Charles Delvalle http://www.contrarianprofits.com/?p=12856 I come from a generation of children that grew up playing Nintendo for at least two to three hours a day. My parents didn’t touch that “magical fun box”. But today, my generation is made up of a bunch of 28 to 34 year olds that all play video games with their kids. Because of that, the video game industry has become one of the fastest growing, and largest sectors of the entertainment industry. And even though it has shown some slowing as this recession has grinded along, growth is still there.

Too bad Electronic Arts (NASD:ERTS) simply is not feeling the love.

After rising for a number of years on increased consumer spending in video games, it’s been all downhill since the…

]]> I come from a generation of children that grew up playing Nintendo for at least two to three hours a day. My parents didn’t touch that “magical fun box”. But today, my generation is made up of a bunch of 28 to 34 year olds that all play video games with their kids. Because of that, the video game industry has become one of the fastest growing, and largest sectors of the entertainment industry. And even though it has shown some slowing as this recession has grinded along, growth is still there.

Too bad Electronic Arts (NASD:ERTS) simply is not feeling the love.
020309cod
After rising for a number of years on increased consumer spending in video games, it’s been all downhill since the credit crunch struck back in August. Shares dropped by 70%.

Just when you thought the pain is over, we notice that on the chart ERTS recently broke under its December lows (it’s previous support line). This break under support constitutes a “Major Technical Break” and could be used to make a bearish trade with.

Shorting this stock could give you a tidy 10 – 20 percent gain by the end of the month. And if you buy a put option… well you could easily make triple-digits.

Just be careful about holding this company short for months on end. As mentioned before, the video game industry hasn’t lost money… it simply isn’t expanding as quickly.

This 70 percent drops seems extremely overdone considering ERTS is one of the top dogs in the industry.

]]> http://www.contrarianprofits.com/articles/make-20-by-march-as-electronic-arts-erts-tumbles/12856/feed 0