Friday, December 16, 2011
My take on Activision Blizzard
If you are looking for the perfect gift for the video gamer in the family perhaps you should consider skipping the hustle and bustle of Walmart Stores (WMT) during the holidays and purchase a handful of share of Activision Blizzard (ATVI). Your gamer, regardless of his or her age, will have undoubtedly played one of Activision’s vaunted titles. Even those not amongst the ranks of avid gamers are likely familiar with one or more of their award winning games like the massive multiplayer online game World of Warcraft. Another popular Activision title, Call of Duty, released another iteration, Modern Warfare III in November garnering $1 billion in just 16 days outpacing the science fiction mega hit Avatar to the mark. No small feat.
Traditional video game companies, as opposed to social media gaming companies like Zynga, live or die by their flagship titles. Activision has a strong stable of blockbuster titles diversified amongst the various gaming genres. These titles include World of Warcraft, Call of Duty, Starcraft and Diablo. The latter is due to release a highly anticipated sequel, Diablo III but what really makes Activision special is what you find under the hood if you care to look.
This company’s market value is just over $14 billion and they have zero debt. They also have over $2.9 billion dollars in cash on hand which equates to just over $2.50 per share. With a stock price of only $12.25 that adds significant value to Activision’s shareholders. (To read more click link below)