Activision is also debating on how to return value to shareholders through activities such as stock repurchases or dividends during 2013. The company is sitting on $3.96 billion in cash and could be looking to deploy this capital in new acquisitions or licensing agreements over the next year as well. EPS has also been on a rise from $.93 in 2011 to $1.11 in 2012 and $1.20 projected in 2013.
Business Solutions: Investing Ideas
Activision Blizzard is in an idle position right now. It is dominating in the content department with a vast umbrella of products that are leaders in each of their video game categories. They also have a steady stream of cash flow coming from subscription games such as World of Warcraft, although this front is facing some new competition. With Activision on the hunt to return value to shareholders over the next year, it would be a good call to be on the receiving end of this transaction. Meanwhile, the company has plenty of cash to use to help reinvesting in its own business in order to get new console content ready, while also looking for expansion through strategic acquisitions.
Activision Blizzard Inc (ATVI): A potential winner given its world-class content and impressive game sales. Activision should see a boost at the end of 2013 with new consoles being released and expect even higher sales numbers if the resale market starts to become obsolete. Look for a profit taking pull back to enter as this stock has shot up over the past month.Written by Kapitall Contributor Nick Sousa
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 + 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