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EA's Shareholders Abandon Ship


SuperTaz

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http://beta.fool.com/insidermonkey/2012/04/09/why-electronic-arts-sell/3483/?source=eogyholnk0000001

 

One of the largest American game entertainment companies, Electronic Arts, Inc. (NASDAQ: EA) has had its fate tied to the declining videogame industry, where users are trading in their controllers for simpler tech products like tablets and smartphones. In EA’s case, much of the blame falls on its overreliance on rehashing sequels to franchises like “Madden” and “Tiger Woods PGA Tour,” which is a result of the company’s uninspiring business model. While it is no doubt that these gloomy strategic decisions will continue to hurt EA’s stock price, there are darker clouds on the horizon. The stock has fallen 21 percent since the beginning of the year and insider and fundamental analysis will have investors taking cover sooner rather than later.

 

One of the most obvious of these clouds can be seen by looking at the buying and selling decisions of insiders within the company, and in Electronic Arts’ case, there hasn’t been much of the former. In fact, while there have been no insider purchases of EA stock within the last year, a total of nine different officers have sold 324,993 shares for a combined market value of nearly $7 million. The most active of these insiders have been Chief Financial Officer F. Eric Brown, Chief Operating Officer R. Peter Moore, and General Council member G. Stephen Bene.

 

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I don't think anyone is in a really good position right now, hell SEGA is probably in the worst spot. Massive layoffs and slashing titles.

 

And I don't even think THQ is taken seriously anymore. The game developer and publisher sphere isn't the behemoth it use to be. Seeing those kickstarter developers pull in a cool million must hurt too.

 

Either way, the BF franchise is my FPS of choice, and I hope DICE doesn't go anywhere anytime soon.

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Lol "PC gaming is dying". Someone has been saying that every other day since the first XBox. It will always be a niche market compared to consoles, but it is far from dying - just look at the kickstarter successes of late.

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