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Dueling Fools: Electronic Arts Bull Rebuttal

You'll have to forgive Tim for assuming that Electronic Arts (Nasdaq: ERTS  ) is devoid of hits beyond its hot-selling EA Sports titles. You know better. You know that EA is the Beatles of one-hit wonders. If combat-peppered franchises such as the Command & Conquer, Battlefield, and Medal of Honor games don't ring a battle bell, maybe a little Need for Speed or The Sims will do the trick.

Oh, and no, I don't fault EA for hopping on late to the Wii bandwagon. Consoles were in short supply, so the size of the potential market shrank over last year's holiday season. Besides, Nintendo marquee titles tend to be in-house Zelda and Super Mario games. EA was there last year with the obligatory Madden and Tiger Woods titles. Now that the platform is validated, it can spend the next few holidays catering to a growing base of Wii users.

Tim takes some shots at EA's valuation. I warned you -- EA is not for vultures. It trades at richer multiples than peers Konami (NYSE: KNM  ) and THQ (Nasdaq: THQI  ) do. So? If Tim is going to wait for EA to trade at a low PEG ratio before he hops on the train, he's going to be sitting at a very empty station. EA earns its premium.

Tim alludes to the six-year hardware cycles, but EA has never had a problem growing on an annual-cycle basis with its popular EA Sports installments. And now that you can play Medal of Honor on your cell phone, Need for Speed on your Apple (Nasdaq: AAPL  ) , and Warhammer on the Internet, I would argue that Tim's home has several video-game consoles that EA is already tapping.

Hear that tapping, Tim? Let EA in to play.

Check out the other arguments in this Duel, and then vote for a winner.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!


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Related Tickers

5/25/2012 12:31 PM
EA $14.27 Up +0.05 +0.32%
Electronic Arts CAPS Rating: ***
THQI $0.63 Up +0.01 +1.61%
THQ, Inc. CAPS Rating: **
KNM $21.97 Down -0.57 -2.53%
KONAMI Corp (ADR) CAPS Rating: ***
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Apple CAPS Rating: ***

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