Topic: How To Invest

Hi Pat: I have been a long time member of your Inner Circle and have greatly benefited from your sound advice. I wonder if you could give me your opinion on Electronic Arts? Your opinion would be greatly appreciated. Thanks.

Article Excerpt

Electronic Arts Inc., $19.71, symbol ERTS on Nasdaq (Shares outstanding: 330.3 million; Market cap: $6.5 billion; www.ea.com), makes video games for a wide variety of devices, including personal computers, video-game consoles (such as the Sony PlayStation, Microsoft Xbox and Nintendo Wii) and mobile devices (including Apple’s iPhone and iPad). Electronic Arts sells a number of sports titles that it reissues annually. The company has licensing deals with most major professional sports organizations, including the National Football League, FIFA (soccer), Major League Baseball and the National Hockey League. The company also develops its own game franchises. It constantly releases sequels and new versions that give it ongoing revenue. Top-selling examples include The Sims (a life-simulation game) and Need for Speed (a car-racing game). As well, the company makes games based on popular movie and literary characters, such as Harry Potter. Electronic Arts’ games have worldwide appeal. It now gets over 40% of its revenue from outside North America. In its 2011 third quarter,…