Jester,

I had given up following VG stocks, given the rise in valuations that has occurred: It seemed as though EA had skyrocketed as a result of analysts' push of the stock, and then others - ATVI, TTWO - has risen into the 30's after having started from a base around the high teens IIRC. You're clearly saying you think ATVI is undervalued here. Do you have some PT that you think it reasonable, given the BLOPs3 sell thru news and other positive factors, or is that not something you've given thought to, as you may just want to trade in and out of it given the overall positive factors you've cited?

I've seen at least a couple of articles in recent days increasing price targets due to the accretive earnings boost. I'm stunned that 30% earnings accretion is rewarded with 0% stock move. Right now it's trading at around 17x 2016 earnings, which is relatively cheap compared to its recent valuation and to the market. I would expect $40 by early February, when they report a successful FY and give 2016 guidance that's about 25% higher than current expectations of $1.60 (Yahoo Finance). The high est is $2.12 so some changes have already been filtering in there, but clearly not all estimates have been updated since the King deal.

Jester,

Thanks for the added info and accompanying figures - very helpful in terms of how to think about ATVI and their premier franchise this season. Of course, i still can't cut and paste, but Forbes/tech has an article out today on the author's - Paul Tassi's - take on what BLOPS3 must do sales-wise to be a success - and while he allows that it might not be the case, mostly he's sounding pessimistic that it will do what he thinks needs to be done, and then in subsequent years he cites even greater challenges. The thing is IIRC Tassi has often published fairly clueless pieces on Forbes, so I'm not sure that his critique holds all that much water.