Friday, April 18, 2008

On Vacation

I'm on vacation next week and will not be posting. I'm very happy with where my holdings stand right now so I'm not worried. I have one stop in on GE just in case it decides to tank any more. I've got 9.5% of my account in cash which I would like to do something with, but I'm not sure where to put it. There has been a ton of trading in my account over the past month which is competely abnormal so I'm looking forward to letting this stuff ride again for a while.

SNE did some nice movement today on news that video game sales are up. I can't wait till people start figuring out that the PS3 is really going to be the platform of choice soon. This article sumarizes the console game industry right now and I like the quote.
PS3 sales doubled from a year earlier, and Sony said new and upcoming games such as its "Gran Turismo 5 Prologue" racing game and Konami's (9766.T) "Metal Gear Solid 4" stealth action title would drive sales in the coming months.

Doubling sales from a year ago is just the inflection point where the curve points upwards and doesn't stop. SNE looks very close to crossing the 50 day moving average at which point I will buy some more. It is currently 5.3% of my account and I'm willing to take it up to 10% when it crosses the moving average. As I write this I guess that price is around 44 and I could place a limit order at that price to buy another 3%. I may do that before I leave on vacation.

The TTWO and ERTS thing is still playing out and I'm glad I'm holding it and hope ERTS doesn't win the bid. Lowering the price doesn't make any sense to me, but if they want it they need to pay more. This would be like Yahoo trying to buy Google when it was really starting to ramp up. They could almost aford it and should have paid a big premium, but a few years down the road it was a completely different story. This is how it will play out if ERTS doesn't win the buyout.

Otherwize, my account is sitting at +1.5% for the year which is good seeing that GE tanked this week and the market has been volitile. I was +2% and -2% this week so my account is swinging wildly as usual. Par for the course. You have to remember, I am diversified elsewhere and this is an agressive account.

No comments: