You may find this hard to believe, but I was once an adolescent youth living the dream on the streets of Queens. I was fortunate, I had a before-school job and an after-school job pretty much from sixth grade on. You know what 11-year-old's with their own disposable income do with that money? Start investing? Who said that? Good guess. No, that wasn't until eighth grade when my dad helped me open my first retail trading account.
Kids in the 1970s spent their cash on video games. Oh, we had to change our dollars into quarters, and actually go to a business where a hundred other kids were doing the same thing, but things really haven't changed all that much. Only now, the video game is on your desk, or even in your lap, and the kids are in fact ... kids of any age.
Call Of Duty: Black Ops 4
Activision Blizzard (ATVI) released its latest title this week -- the much anticipated Call of Duty: Black Ops 4. The stock ran 5.5% higher Friday to $77.92 as investors lick their chops waiting on early indications of how well this latest release has been received. As a father whose children are working men in their 20s, I can tell you that I have heard of this game in conversation, so I know that the interest is there.
The game will feature a new level of Tactical Multiplayer, and a couple of things that really do blow my mind, being that I thought "Asteroids" was an awesome game. I am referring to something called the "Zombies Co-op Experience" and "Blackout," a new "Battle Royale Mode."
Now, I might be too old to give much of a darn about playing these games, but I'm not too old to try to invest in anything that's going to sell.
A Good-Looking Chart
Piper Jaffray's Michael Olsen (a five-star analyst) wrote in a note Friday that early reviews for the game are strong. Olsen believes that this latest in the Call of Duty series is "loudly staking its claim as the top shooter title." Given this news, Olsen admits to starting to think his own sales estimate of 23.5 million units for 2018 could be on the conservative side. FYI, Olsen has maintained his "Overweight" rating and $88 price target.
Let's check out ATVI's chart:
Interestingly, ATVI has seemed to ignore standard Fibonacci retracement levels. Daily MACD, Money Flow, and Relative Strength all went south with the recent tech-sector selloff. Is this the game-changer that we were looking for?
Well, going strictly by my Pitchfork model, do you know what target price the model suggests? Go ahead, look at the central trend line. That's right -- $88.
So, Piper's $88 target looks like a solid call to me -- and by my chart, the stock will hit that level right in time for the holiday season. Oh, by the way, I'm long this name.
(This item has been updated.)