Atvi Investing Vs Trading
Q: I've owned this stock for about 6 months. Coincidentally I bought it when I cancelled my WoW subscription. It hasn't gone up much as a whole but because I liked this company I bought at a few lows to bring down my average to about 10.00. My question here is looking into the next year or so, why wouldn't I add to my positions around 11.00 when it may be 15 by the end of the year? And the alternative is to sell my position at a 10% gain and wait for it to hit 10.00 again. Does anyone honestly think it may go below 10.50 anytime soon? Personally I'm leaning toward adding, because I believe in this company. But because I'm new to trading, I'm not so sure where to make the big gains. Thanks for any discussion
A: The line up for this year is pretty strong. If you only consider this, then the stock is bound to go up. Traditionally the company sees a fair amount of sell-off post holiday which drives the price down. Starting around this time each year, the price regains upward momentum as more title reveals hit the internet. ATVI stock price steadily increases building up to the November game releases. That said, this economy is barking mad. Anything could happen. I've personally dumped a few shares around 11, repurchased at 10, and then repeated this process. Your guess is as good as anybody's as to when the boat sails... Of course, you may see some highs and lows that allow you to buy at good prices, however, you're talking about a 10% drop from the *current* level to be able to buy at 10. This ignores the wealth of likely good news that's due this year (Diablo III, Starcraft, any announcements they make at Blizzcon) and the sustained positive impact those will have on the stock price. My advice (and I am not your financial advisor) is two possible choices: 1 - pick a stable blue-chip or an index fund while you watch for a rough day on the market in the short term, where you can pick up ATVI at a good price. Market is still pretty volatile. It's a gamble, because we may never see $10 again, but you'll be making money all along. 2 - pick it up now. The price is good at $11, the market is still way down, and you're still ahead of all the positive news coming out this year. Personally, I'd take #2. And I'm in ATVI for about 1/4 my trading portfolio.