VGStockz: General Questions

[Ail]

happydolphin said:

Ail said:
Well right now I hold TTWO and EA.
I've been holding TTWO for now a year and my position is up 21%.
I'm not planning to keep it forever however as the stock fluctuates too much depending on GTA releases.
Right now my goal is unload probably around the time that GTA releases as the stock always spikes around that time too.

I hold a small EA position too, bought it when the stock fell in early january on bad SWTOR rumors.
So far I am down 1.5%. I'm planning to wait and see on that one, I think the stock can get up back to around 22$ easily, just not sure of which time frame...

I'm looking forward to your updates, keep us posted and help us make good picks and understand the stock market better.

About TTWO, good job on your gains. I really think it's going to bounce up in time for GTA V.

Do you mind if I say I would predict they surge up radically? I see another 2005 (San Andreas) / 2008 (GTAIV) peak for GTA V's release, only shorter this time.

 

Opinion, do we know what caused the plunge for the Western devs from 2008 to 2009? Was it the overall recession or was it videogame related?

http://gamrconnect.vgchartz.com/post.php?id=4423925

The only ones who seems to recuperate from it pretty well were ATVI and TTWO.

It was mostly recession related.

People flew the stock market in droves and every stock tanked ( except AAPL but Apple is a different story..).

Then in 2009 when things got better people picked first the best growth stock to get back into the market and no matter what you say video gaming stocks are not growth stock as their business is very cyclical and they have to reinvent themselves every few years.

 

ATVI recovered well because with WoW it has a business less cyclical and it was able to keep being profitable during that time. And ATVI is more like a utility company than a video gaming company. They have regular profits, they pay a dividend and they do huge stocks buy back which help keep maintain the stock price...

TTWO did well because it demonstrated that it was not as much a one man pony show as it was in the past ( Read Dead Redemption, L.A Noire and NBA2K have been doing very very well these last few years). And TTWO is still a good acquisitions target which is keeping the price high, I'm not sure who would be interested in buying but if I had the money and I was to buy a gaming company, TTWO would be the one...

 

As for the TTWO spike, my original target was 17$ but with the recent market rally I can now see the stock going as high as 20$. If the stock spikes the day they announce GTA5 release date I will sell that day, if it doesn't I might wait until the week the game actually releases..( I've seen the stock spike as much as 8% up on those kinds of occasions, keep in mind that some of the GTA5 expectations are already priced into the current stock price so the spike could be lower).

No matter what I doubt I will keep my TTWO stocks much past the actual GTA5 release date.