Happy Tuesday to all! Market is taking a fall today, and it looks like it is making a solid opportunity for an overnight trade of the day for us, which we should get involved with this morning and take advantage of a day long advance as I think the market will cool down. It is basically a Buy Pick of the Day and Overnight Trade of the Day in one. Yesterday, we got involved with a Week Long Play with JC Penney Co. (JCP). I was afraid this cool down would occur, but I went ahead and got involved at 29.15. We are down about ten cents right now, so not too much of a concern.
Also, later in the day for all of my PREMIUM and OXEN ALERT MEMBERS, I am going to be publishing an interesting look at the oil market that will help you to better understand how to play oil ETFs and make some money.
Overnight Trade of the Day: Electronic Arts Inc. (ERTS)
Analysis: The gaming market is one of the continual growing industries that has continued to make more and more money, as a whole, every year. That, however, has not translated in any established growth stocks as the companies all stay rather cyclical with hot quarters when sales are good of a new game and cold quarters when the buzz dies. This quarter, I believe may be a semi-hot quarter for Electronic Arts Inc. (ERTS), and it will be much hotter than for what analysts will give the company credit.
Electronic Arts is projected to report an EPS of 0.05 today in after hours. The stock has been hit as most stocks have with recent declines in value. ERTS lost, in the last two weeks, over 8% in value. The stock looks poised to run up today as I think the market will continue recover and surprise people tonight with good earnings. In the first quarter of 2010, which corresponds with ERTS’ earnings (even though it their Q4 already), ERTS had two of the most major selling games – Mass Effect 2 and Battlefield: Bad Company 2. The company sold 890,000 units of Mass Effect 2 on XBOX 360 and 1.28 million copies of Battlefield on XBOX and PS3 combined. These are huge sales.
Signal Hill analyst Seth Greenwald commented that these sales are far above any expectations the company would have ever had. Further, the company should…
