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Forums - Sales Discussion - VGStockz: Nintendo FY end report on May 7th

Looks like Valve went with AMD processors for its new steambox/steammachines. Expect AMD to continue its rise all the way up to earnings come Oct 16.
Could retrace back to 4.60
Most analysts suggest AMD is a long buy, which means that you buy and hold it for a long time.



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Vivendi has being losing alot of property lately.



Time for a recap...it's been a while.
NOK Nokia is up from 4$ to 6$ after the MS purchase of the phone line. Continues to rise, albeit slowly.
AMD Advanced Micro Devices is holding about steady average over 3 months, though rising as of last month. Sitting at 3.91 with a hard ceiling around 4$, if it breaks, it could retrace to 4.60. Nearly all analysts agree that AMD is a strong buy.
ATVI Activision Blizzard is up still after buying itself out of Vivendi, gone up nearly a dollar. Current speculation is that COD is dying. Price should increase following a strong COD performance this holiday.
NTDOY holding about average over the month. 3 months ago was sitting nearly 3 dollars higher. Could see a retrace this holiday with big releases and more sales for WiiU.
DRAM back to its 3$ low. Will be quite some time before another burst happens.
SKUL Skullcandy still up 20% over 3 months, with a large rise 2-3 weeks ago. Keep an eye on earnings.
GME Gamestop continues its steady rise. Expect it to continue going into holiday season.
ZNGA Zynga finally starting to settle in, up nearly 50% since Don Mattrick took over.
TTWO TakeTwo, owners of Rockstar property GTA5 gapped up two days ago, and could continue its ascent from there. Keep an eye on it as its typical of Rock* to make most of its profits on expansions, as well as possible ports to the new systems this holiday.
SQNFX Square Enix up over one month. Don't ask me how. Avoid.
UBI Ubisoft gapped down recently. Watch for a couple more drops until watchdogs.
EA EA holding steady at 27$
MS holding steady.
Sony holding steady. Watch for breaks in both come holidays.
KNM Konami gapped up recently and should be coming back down until earnings.



Look at this options chain
Jul 19, 2014 0.50 0.01 0.45 0.60 40 1402 GLUU 6.00 Jul 19, 2014 0.10 0.05 0.10 10 897
Jul 19, 2014 0.10 0.01 0.05 0.10 40 1184 GLUU 7.00 Jul 19, 2014 0.60 -0.10 0.55 0.70 2 122
Jul 19, 2014 0.05 0 GLUU 8.00 Jul 19, 2014 1.40 1.65 0

the 6,7, and 8 are the strike prices. Basically, an option chain is like insurance. It allows you to buy (call) or sell (Put) at the strike prices. The first numbers are the cost of each share for 100 shares.

To explain further. At a strike price of 6$ I can purchase a call option for 50 cents...left side of the table between the GLUU ticker symbol. This call option allows me to buy 100 shares at 6$ each, but I have to pay an additional 50 cents per share for this "option". Basically, a guy is like, hey I got these shares I bought at 6 bucks. If you think this stock is going to go up, you have the option of buying them from me at 6$...I'll "lock in" this price for you. But you're going to have to pay me 50 cents times 100 shares for this option.

Right now, the price is 6.49, so if I were to buy this option from him, it would cost me 50 bucks. If the stock goes up to 7 dollars, then I can exercise this option and buy 100 shares from him for 6 bucks each and make 100$ minus the 50$ I paid for the option. So a profit of 50 dollars.

If I were to buy the stock now, outright, it would cost me only 6.50, and if I bought 100 shares, I would make the same exact profit.

The point of an option though, is that I don't HAVE to buy the stocks. I buy the options for a fraction of the price and wait til I actually want the shares. Similarly, if the price goes down to 6 I only lose exactly what I paid for the option. The only amount my account is ever hurt during all the run ups and down turns, is 50$. It could run to 12 dollars, or it could go bankrupt. The point is, I only have 50 invested.

Now, looking at this options chain, there are roughly 4000 shares on option at 6 bucks, and another 4000 at 7. I could spend 10$ and get a guaranteed 100 shares when it hits 7$. The lower the price, the more risk is involved. The funny thing about this stock, is that there are only 1200 shares for "sale" as puts. (the right side) That's extremely low compared to the calls. What it means is that the market is extremely bullish on this stock.



kowenicki said:
Prof doesnt update this... cant think why

Perhaps I should do a thread "Prof v selective stock market movements"..... lol

Since 26th September (prof last update)

Sony down 24%
Nintendo up 4%
MS up 12%

Oh shush up. It has nothing to do with Sony. I prefer small caps. There just hasn't been a lot of movement with video game stocks. DGLY and ZNGA are all over the place. Honestly, I wouldn't invest in Sony or nintendo or ms. The movement is so small to be not even worth a second look.

But, if you want to make guaranteed small amount of money, go with MS. I recommend.

(also, as an update ms is roughly 20% up since jan 1...30% if you include since sept. Sony is flat since sept, or up 10% since kowens update)



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Let's get hyped for some stocks, bitches! This thread needs an anthem:







VGChartz♥♥♥♥♥FOREVER

Xbone... the new "N" word   Apparently I troll MS now | Evidence | Evidence
padib said:

Despite this example I still struggle to understand options.

A few questions:

- Where did you get the 1200 value (in bold) from? I see 1184 as a value in your table, did you round up?

- What happens to the seller when you buy the option but decide not to get the whole stock, especially if the stock value depreciates? Also, until when do you have to buy your guaranteed stock  (if you want to), is there some date range until which you can't exercise your right to buy the stock at 6.50?

- Where did you get the 4000 values from?

Seems like you were right on all of these:

  • PPHM seems to have had a spike in March of this year then back down, but since May 2013 it's up from 1.41 to 1.72.
  • AMD seems to had already jolted when you recommended it, but still it went up from 4.07 to 4.53 overall since May 2013.
  • SKUL also went up after having fallen abrupty in Aug before that (2012), so it was up 5.49 to 7.35 since your suggestion.
  • ACTI went up up up from 14.94 to 22.75.

Very good suggestions prof.

The 1200 value is the 10 plus the 2 near the end of the table. That's how many options are available (12). Each option is worth 100 shares, so if you buy an option for .60 cents, you're actually paying 60$ for the right to sell 100 shares at the strike price (price in the middle).

If you decide not to exercise the option, the seller of the option keeps the "downpayment".

You can exercise the option at ANY time. However, there is an expiration date that it must be used by. In European markets, an option can only be exercised ON the expiry date.

So yeah, if I bought a call option to buy at 6$, and the stock only goes down from there, I never have to exercise the option, but he will keep my downpayment. But that's ok, because by doing so, I can basically own 100x the amount of stock that I'm capable of buying because each option is worth 100 shares.

For instance:
I have 100$
There are several companies that I want to buy stocks for, but I don't have the funds for all of them. Using options, I can buy the right to sell at the price I want in the future by simply exercising the option.

The 4000 value is the same as above. There are 40 options available on the calls, so 4000 shares available.

As far as current gaming recommendations, I would suggest parkervision $PRKR



I approve of this thread, always great to see financial planning. Unfortunately due to my occupation in the financial industry I am unable to disclose own methods and portfolios.



Hi everyone,
welcome back. I'm going to be more steadfast in updating this thread as this is an exciting time for vgstocks.
We have all three companies poised to do very well in the coming weeks and months.

I'd like to start the up/down tournament as well...so please let me know if you're interested.
Thanks,
Prof



P/E-ratio would be nice