It was fun to see MassivelyOP report on Blizzard’s stock today. Activision-Blizzard was added to the S&P 500 last night, sending the stock to gains of over 6% today before settling at 4.6. Yes, the kitty watches the markets all day.
Last spring I said a big opportunity to invest in gaming stocks was coming, but I said to wait until the market broke either up or down from its holding pattern. Early this week it broke down over 10%, officially forming a “correction.”
I added to my Electronic Arts (EA) position. Electronic Arts has far less debt than Blizzard, a lock on Star Wars, and franchises. In an increasingly competitive game development environment, I believe franchises will be more of an asset in the long term than an albatross.
I also boldly bought AMD into an 8% bounce in the last few days. NVidia also roared up from the bottom, matching Amazon in demand from investors. I’m not really skeptical about Nvidia, but a chip company doesn’t seem like a core holding for me. AMD is a small speculative investment.
I’ve been trying and trying in recent weeks to come up with a way to play the new frontier for console sales in China.
Sony has negative earnings and is adding more debt to make more camera components. Nintendo is only tradeable in Japan. As for Microsoft, I’m worried about conflicts with the Chinese government, and Microsoft has been royally irking the kitty in the last few weeks, badgering me to upgrade every day.
My work office also upgraded to Office 2013 this week, which is worse than the previous iteration while instituting an online “account” feature, which apparently stores some of your settings. Oh great – more big brother and ways to pay. Just what I always wanted.
Meanwhile, my anger at my broken, non-functional Radeon software on my PC is far behind me. So MSFT is sold, and I’m gambling (nothing I can’t afford to lose) on an AMD bounceback with both PCs and the China consoles, as well as new moves into mobile markets.
AMD has chips in all three major consoles, including the Wii U. Star Wars ep. VII will singlehandedly trigger a new round of console sales for the holidays, so the kids and old timers alike can play Electronic Arts’ game.
AMD also has a hot female CEO (by my gay standards), which means something to me. Lisa Su is an MIT graduate. She just paid herself a big bonus though, in a scathingly criticized move.
So the ship is either sinking fast, or the horizon is bright enough for bonuses. Nothing this kitty didn’t already know, which is nothing, except the stock is basically pricing for bankruptcy right now.
So is it all clear to load up on gaming stocks now that the market drop has flushed out a lot of weak hands? It’s a little late. Blizzard and NVidia have practically bounced back already.
Maybe the market will be ok since the GDP was revised upwards. This clears the way for a fed rate hike again though, which may bring another dip.
The market’s movement depends a lot on how much new money came in on this dip, and whether it’s enough to build a new high. If it isn’t enough, the ship is sinking again in this kitty’s opinion. The big moves in the most popular stocks are just people chasing the winners.
I went from 25% invested to 35% invested on this dip, so if the market drops another 10% or 20%, I’ll buy again. Hopefully soon I can stop watching the stupid pot boiling.
This week I was creating fantasy art and brainstorming story and lore for my personal browser-based RPG project. I’m taking a break from school. Yolari is back on board as a tester and consultant. I also might have someone to do cheap voice work.
Happy Friday and happy gaming.