Well, OK. I stand corrected. Electronic Arts (NASDAQ:ERTS) is more than a one-hit wonder. But mine isn't the only gaffe in this debate. Quoting Rick's bull argument:

Paying nearly 30 times next year's profitability may seem expensive, but EA is worth it. It's growing its earnings at an increasingly fast pace these days. (Emphasis mine.)

Um, no:

Normalized Net Income

TTM

FY 2007

FY 2006

FY 2005

FY 2004

Year-over-year growth

(77.1%)

(63.1%)

(42.8%)

(8.2%)

45.8%
Source: Capital IQ, a division of Standard & Poor's.

And the top line isn't much better:

Revenue

TTM

FY 2007

FY 2006

FY 2005

FY 2004

Year-over-year growth

2.5%

4.7%

(5.7%)

5.8%

19.1%
Source: Capital IQ.

As members of the Rule Breakers research team, Rick and I are used to paying 30 times earnings (or more) for fast movers. Massive growth is quite often worth it. With EA, all you have is the promise of massive growth -- a promise it has yet to keep.

Spitting into a tailwind may be a bad idea, but so is spitting on your portfolio. Save your sore thumbs for a stock that's cheap enough to deserve your dollars.

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