Also from Baron’s today, SG Cowen says: “WE ARE INITIATING COVERAGE of the videogame software industry with a favorable long-term view. The industry has attractive growth and return on invested capital characteristics compared to traditional media companies. New console and handheld hardware cycles should help drive strong software growth over the next several years.”
Boy they must read me in the morning! Even beaten down TTWO (blood spurting good, naked bad) could get a nice pop out of this. Expect Cramer to be pumping Xbox and the game industry as well for the next week or so but I agree with his idea that GME represents a nice basket call on the industry.
The real time to enter this stuff is before the xmas quarter results are in but you need to really do you channel-checking homework to figure out who’s been naughty and who’s been nice.
