Brean and Wedbush pumping
EA
Brean and Wedbush pumping EA. They say Star Wars estimates and
earnings estimates are conservative (which should already be a
given considering analyst ests are currently higher than EA's
guidance). I guess they're not concerned about the lack of single
player campaign, or that the analyst estimates for Titanfall (also
an MP focused game) were far higher than actual sales. Last year
Wedbush forecasted over 10M sales for Titanfall! EA has never been
brave enough to talk sales, but I see VGChartz has it at 4.33M,
which includes many units at discounted prices. Truly, these guys
are the execs best friends.
The forward P/E has risen from 16 in May 2014 to 24 today, how
much higher can that go? Wouldn't higher Star Wars sales have a
slightly negative effect on margins, due to high license fees?
Meanwhile, the execs have sold $72M in the last 6 weeks and the CEO
and others have opened trading plans to sell more.
finance.yahoo.com/ne...9.html
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Jester,
I am again hamstrung by not being able to copy and paste links.
But Reuters, article by Terrance Gabriel (googleable, I'll bet) is
a mixture of disinformation (solid franchises and beats in an
industry known to be 'fickle'), and technical notes - e.g.,
approaching all time high, RSI at multi-decade high - denotes an
extreme overbought condition, and speculation (expectations for
blockbusters a la starwars) may be baked into price. Average
analyst target is 67 - but as we all know, those can be raised for
any reason. So, as you note, you've got a company that is
seen as a superstar in the sector, and can do little wrong, except
that technically it looks overbought. Rose 100% in 2014, 40% YTD.
And so, all those insiders are selling because.....? OTOH, a
fair number of board members were trying to guess where to short
GME when it was in the mid-30's. Now solidly above 40, seems that
the only thing one can surely say about it is that it is not
'timeable'. There is always something to pin hopes for higher
numbers on. Perhaps reselling reconditioned fitbits is next.
I wouldn't think to touch either stock, as perception and
reality are confabulated beyond reason, making predictability
impossible.
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Author:
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Jam
ok
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Subject:
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Off Topic
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Sentiment:
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Neutral
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Date:
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06/19/15 at 2:45 PM CDT
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