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Activision is expected to report the "largest and most profitable quarter in its history" thanks to Call of Duty 3, Guitar Hero II, Tony Hawk's Project 8 and Marvel: Ultimate Alliance. But this is very much preliminary and could be impacted significantly by an ongoing stock options investigation. Also, Quake Wars has been delayed.
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(Link to GameDaily.com)
Yes, earlier this week there was noticably bullish activity on the Activision (ATVI) February 17.50 call options, the volatility and demand on these options were significant. The smart money/big institutions are expecting (or in the know) great results whenever Activision releases earning in either early or mid-February.
The stock option investigation relates to the backdating scandal that has hit even Steve Jobs and Apple, though his status will probably get him off the hook Larry Ellison style. The investigation won't affect the earnings number but could affect the stock price.
Well, I take that back. Possible Q3 restatement, likely Q4 impact.
http://yahoo.reuters.com/news/articl...mktNews&rpc=44
Activision is trading around $16.84. You guys know this industry like the back of your hand. I like this price point knowing that Guitar Hero 2 drops in April. The options backdating scandal could be an albatross, but what company isn't/hasn't been investigated for this same shit? This too shall pass.