Something's Not Right in the Video-Game Space
With the E3 trade show starting in Los Angeles in a couple weeks, my mind is drifting to the video-game business. Although it's very much a hit-driven industry, historically this sector offered many opportunities to play product cycles for exceptional profits.
For instance, Electronic Arts (EA) had a phenomenal 15-year run, going from $0.50 a share (split-adjusted) in 1990 to $65 in 2005, with hardly a pause during the Nasdaq bubble bust. Activision Blizzard (ATVI) ran from $1.30 (split-adjusted) in 2000 to $18 in early 2008. Nintendo ran from 10,000 yen to 70,000 yen between late 2005 and 2007, based on the Wii product cycle (symbol: TSE on Tokyo Stock Exchange). The stock price tracked an equally impressive ramp regarding earnings before interest, taxes, depreciation and amortization....307 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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