Tuesday, April 04, 2006

 

Why you should buy stock in Electronic Arts ERTS

I got laid off from a job about a year or so ago. Their 401K was junk. When I called Fidelity to move my money out of their watered down mutual funds they begged me to keep it there. I asked if I could put the whole thing into one stock. They said yes. I said great. Put it ALL in:

Electronic Arts (ERTS)

Why did I do this?

Quite simply the new video game systems are going to just rock. When you look at the video game industry Electronic Arts is the best of Breed. I won’t go into it too much but they have some pretty strong franchises (Madden Football for example).

Now, a few things have happened over the last year. Microsoft has a slow start to their Xbox 360 launch and Sony is behind on the Playstation 3. But these new games console’s will be out by Xmas next year and when they hit, Electronic Arts will hit big time too. Electronic Arts is on
SALE RIGHT NOW.

You see, there’s a lot of people out there who would rather interact with something then just get spoon-fed a bunch of crap over the TV (have you seen these stupid programs the networks are pushing?). This generation of games will be almost as realistic as watching TV. Add to it the fact that you can link them online like never before. There’s one more silver bullet that’s not discovered and that’s Product Placement in Video Games. Don’t you think Nike would like the Video game football players to wear their shoes?

Wouldn’t Ford or GM want you to drive THEIR cars in the Racing Games? What about background music when you’re driving around?

Do you think the Army would want to recruit the best first-person-shooter gamers?

Electronic Arts is a steal right now because of the sluggish sales (no consoles available). It’s at about $54-55/share today. I bought at $53. This stock will soar in the next year.
Keep this in the back of your mind.

If you don’t buy it, just remember, I told you so!


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