Sunday, December 2, 2007

Damn, Missed Activision

Guitar Hero 3My first stock purchase on this journey was going to be Activision, ATVI. I even made sure I was up early today to check out the stock and look for an In today. I liked the stock because I have found it impossible to find Guitar Hero 3 for the Wii. There were also rumors that Vivendi might buy it up. That meant that I wanted to get in and out of the stock in the next 3 weeks, right before Christmas. I thought the two above factors would mean good price action in the short term, with a good long term story of a growing gaming industry and a hot game franchise.  The stock has rebounded since hitting a dip in November, so it wasn't too expensive and look ready to go up for a run.

Well, right before the bell Vivendi announced they were purchasing Activision. Stock Jumped 20% on the news. Since Vivendi has put a price on the stock now, it's pointless to try and get in. Would have been nice to get a quick 20% return on my money. Oh well, on to the next stock.

4 comments:

  1. I did not hear this until I read your blog. This is interesting. According to Wikipedia, "Vivendi announced that their subdivision Vivendi Games would be merging [with] Activision to form Activision Blizzard" (they bought Blizzard a few years back). That is pretty big news. EA seems to be the only other video game company that is as large as this new merged company.

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  2. Yeah, EA is the only company bigger than Vivendi's game division. There is some rumors of more consolidation, so companies like Take Two being bought out, but I don't have as good of a feeling about these as I did about Activision.

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  3. I had that gnawing feeling to buy the stock after the second Guitar Hero too. Missed that gravy train though!

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  4. [...] it last weekend, and was ready to pounce on it Monday or Tuesday.  Then of course they announced the Vivendi deal, and that killed any trade I could [...]

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