Selling BBT out of Portfolio, Adding Electronic Arts (ERTS)
Posted on | November 20, 2008 Time: 4:38 pm |
I’ve been reading up on BB&T’s commercial loan portfolio, and I’ve become nervous enough to want to eliminate this risk. Selling total position of 1000 shares (which were added @ $28.54) at $24.01, realizing a modest loss and picking up a $.47 dividend last month.
ERTS Added
I’m also originating a position in Electronic Arts (ERTS), which has set off personal alarms at the prices under $18/share. This company has 2/3 of its market cap in C&CE, which is quite the backstop. I re-visited the valuation after ERTS released earnings on October 30th, and continue to believe in the long-term thesis. While the company has struggled with its original SKUs, it continues to print money on its franchises.
The installed base of consoles continues to rise, and in this environment I expect to hear news from MSFT and SNE that development efforts will be slowing down on the next iterations. It’s time for them to monetize what they’ve got, and continue to maximize graphics, game engines, and online distribution.
Adding 1500 shares to Secular Trends Portfolio @ $17.90
Ryan Barnes
Tags: BBT > Electronic Arts > Gaming Consoles
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