Why Electronic Arts (ERTS)? Tons of Reasons

EA Sports Active for Wii, Madden NFL 09, My Sims, SPORE, Mercenaries 2, Left 4 Dead, Need for Speed Undercover, Lord of the Rings Conquest, NCAA Football 09, FIFA 09, Tiger Woods PGA Tour 09, Trivial Pursuit, Mirror’s Edge, Dead Space, The Sims 2 Mansion, Warhammer Online, MTV Games and Harmonix Rock Band. Do you need another?

Electronic Arts Inc.(NASDAQ:ERTS) selling points to Buy shares:

• Proven Track Record: In FY 2008, EA had 27 titles that sold over 1 million copies, and seven titles that sold over 3 million copies, including FIFA 08, Madden NFL 08, Need for Speed Pro Street, The Simpsons, Harry Potter: Order of the Phoenix, Need for Speed Carbon, and Rock Band.
• Beatup Stock Price: The stock has come down from $50 to under $20, closing at $18.45 yesterday, sure it could go lower, but its near the bottom. Investors have bailed on Electronic Arts in recent months, the stock price is down 57% in the past 3 months. 
• Via WallStNation.com: The Expecations are Low

  EA lowered its full-year profit outlook range because of the strengthening dollar and the delay of the latest "Harry Potter" game, though it kept its revenue forecast intact. The company expects to earn between $1 and $1.40 during the fiscal year, excluding items, down from its previous forecast of $1.30 to $1.70 in adjusted earnings. On this basis, analysts are predicting a profit of $1.42 for the year.

• Cutting Costs: EA is also said last month they are planning on cutting 500 to 600 positions across all functions and locations. While some of these jobs are open, most will involve layoffs. The company said it expects about $50
  million in annual pretax cost savings as a result. 

• A balance sheet with lots of cash and little to no debt.
  
• An EV/EBITDA ratio less than 4 and the Need for Speed girls:
  
• Game Sales are actually doing well: A business with the financial strength and strategy to survive and thrive in a down economy. Sales of video games rose in October, according to NPD Group. The industry is still poised to do $22 billion in sales in 2008, NPD estimates.  Its game on for ERTS.
• The9 Interest: ERTS has a 15% stake in The9 Limited (ADR)(NASDAQ:NCTY) which is way low trading at $13 a share, $2 away from a 52-week low. The9 is an online game operator in China. The Company’s business is primarily focused on operating massively multiplayer online role-playing games (MMORPGs), including World of Warcraft (WoW) and other games in China

• Big Pimping: This is just what the doctor ordered, the company is cautious, cutting costs, the industry is still holding up, the stock is cheap, and the future game titles look solid.

SOURCE: http://wallstnation.com/Electronic-Arts-ERTS-111508.html