My Previous addiction before stocks, Games, gives me a little insight on this company.

Highly suspect activision will continue higher for the next couple years for the following reasons.

1. Activision’s core company is strong. Call of Duty and Guitar Hero will continue to make money.

2. Activision’s recent acquisition of Blizzard is HUGE for several reasons.

-Asia and European gaming growth is going to be far greater than the US over the next decade, and Blizzard is rapidly growing in both areas:

——South Korea’s national sport is Blizzard’s game they made 10 years ago (starcraft), and wouldn’t you know, they are coming out with starcraft 2 in q1 next year.

——World of warcraft, a masssively multiplayer online game which forces 10 million players to pay 15 bucks a month to play, is HUGE in ASIA. More subscribers come from Asia than they do the US i believe(not 100% sure).

3. Blizzard has confirmed that a new game is in the process and i’m about 90% sure it will be an MMO like World of Warcraft, and it should be announced at the next blizzcon conference in October. When that game releases, whatever it is, it could easily pop up total subscribers between WoW and the new one to at least 15 million, probably 20 million.

4. The stock is being held down over fears of losing market share in the MMO world with the upcoming release of the new MMO: Age of Conan. Ha, ya fucking right, maybe a million out of the ten million WoW subscribers will leave to play conan, and i believe at least half will come back to WoW within six months.

5. Because of the acquisition i think a lot about the future of the company is uncertain to lots of investors, which makes this stock look even cheaper to me.

So basically, I think that this stock could see a lot of upside as blizzard’s potential shows up in the stock price.

Worst case scenario: stock stays flat because revenue in guitar hero and call of duty are sub par.