The gaming sector has been hurt by declining software and hardware sales. Activision Blizzard (ATVI) just killed its Guitar Hero franchise and won't have a new World of Warcraft release until 2012.
But the company does have 12 million online subscribers driving profits. Activison expects the market for online-enabled game consoles like the Xbox and PS3 will grow by 24% and is focusing on this business as opposed to developing games for smart phones.Rady thinks ATVI is an attractive takeover candidate that will outperform. He says, "Dominant, best of breed company with a 12-18 month price target of $18, approximately 50%."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV