The video game industry has a reputation for being recession proof. And soaring sales this year suggest there are some great profit opportunities in the sector. That’s why the Money Morning team have created this comprehensive guide to virtual investing.

The Dow plunged over 370 points in yesterday’s going, wiping out Friday’s spectacular gains for big-name stocks.

But there are profits to be made in the small-cap market says Laura Cadden in Today’s Financial News. She’s found three great small-cap stocks going for bargain prices. All three have solid valuation ratios and strong short-term growth prospects.

They are Javo Beverage Company (OTC:JAVO), The Home Shopping Network (NASDAQ:HSNI), and Take-Two Interactive Software (NASDAQ:TTWO).

Electronic Arts Ditches Take-Two; Nucor’s Positive Outlook; Best Buy Snaps up Napster; Target’s New Ballpark; Oil Hits Six-Month Low; Wilbur Ross Expects 1,000 U.S. Banks to Fail; Hewlett-Packard Slashes Payrolls

Electronic Arts Inc. (ERTS) dropped its $2 billion hostile takeover of video game publisher Take-Two Interactive Software Inc. (TTWO) yesterday (Monday), but the two companies have entered into private discussions that may finally result in a friendly merger.

Lowe’s Reports 1Q Declines; Oracle of Omaha for Obama; Microsoft, Yahoo at it Again; Staples Launches Hostile Takeover of Corporate Express; News Corp. Increases Premier Stake; Take-Two Snubs EA; Pacific Ethanol Stock Surges Despite Loss; Feds to Investigate DeVry.