Jared Levy has spotted unusual options activity in Electronic Arts (ERTS). Market speculation suggests Microsoft (MSFT) may be interested in acquiring the company.

right place for future

It's in bargain price right now!!!!

Barron's: With the market having had such a big rally since March, is it harder to find good growth stocks these days?

Milano: Absolutely, especially when we just spent nearly six months, from last October through March, where you could buy almost anything you wanted and you could pick your price. So the stocks I was buying in March are now up 30%, 40%, 50% in some cases. Of course, it is harder to get excited about Electronic Arts [ERTS] at 21 than when it was at 15, and Henry Schein [HSIC] at 52 than when it was at 35.

Long-term Buy - Price 20.34 on Aug. 11
by Hilliard Lyons

June-quarter results were encouraging to us. Net revenue on a non-GAAP (ex-deferral) basis surged 34%, due to a series of successful videogame releases. We were impressed by this performance, particularly given recent weak industry sales and a difficult economic climate. Bottom-line results were enhanced by recent cost reductions. The quarter's non-GAAP net loss of 2 cents per diluted share compared favorably to the year-ago net loss of 42 cents per diluted share. We were expecting a net loss of 15 cents per diluted share. Due to a well-stocked product pipeline and recent restructuring initiatives, we feel an earnings rebound is under way. Management remains highly focused on growth initiatives and profit margins.... [Anticipating] improving fundamentals at the company, we project current-year earnings of $1 per diluted share, versus a net loss in fiscal 2009. We recommend purchase of ERTS and reiterate our two-year price target of 32 ...based on the assumption of an earnings rebound over the next few years and a valuation on forward earnings similar to the current level [20.7 times]. Also, we note that ERTS is financially sound, with over $2 billion in cash ($7 per share) and no long-term debt. Market cap: $6.6 billion.

"It's down so much I can't go against it here. I like it." "Mad Money Lightning Round," 6-10-09

From a recent Mad Money show:"I'm confused. They had an awful quarter, they laid off a bunch of people, now they're up. I don't trust it, I'm a seller."

From a recent Mad Money show:"This is a tough situation. They are best of breed, but it's a tough business. I don't think they can be bought here."

From a recent Mad Money show:"This is a tough situation. They are best of breed, but it's a tough business. I don't think they can be bought here."

Great balance sheet, industry and valuation

notoriously unstable industry. Rising development costs and longer development cycles. Company will never tank but unless you got in years ago...you wont make much off of this stock.

1st loss I ever took on a stock.

unique

The videogame industry is huge and growing, but the company treats its employees like crap. Top game designers might be enticed through salary, but will leave for peace of mind.

"Seligman's Wick is down on Electronic Arts (ERTS), contending that its game portfolio is tired. Sales of EA's Madden Football for Sony's PS2 console fell 46% in September versus a year ago, according to NPD, a market-research firm. The surprise emergence of Nintendo's Wii machines has caused EA, which doesn't have as many Wii offerings, to lose share. Trading at about 57, or 29.9 times forward earnings, "Electronic Arts is the most expensive computer-game stock, yet it has slower growth," says Wick, who pegs the shares' downside in the mid-40s."

Wick is also bearish on Electronic Arts (ERTS); he says the videogame outfit's franchise is eroding, with many of its key titles looking tired.

great brand name,but what happened to the earnings?!?

Decline?

Great stable of game titles, but valuation not supported by growth rate. As likely to see a 20% pullback as a 10% rise.

Comapny is loosing byusiness to competitors