Tuesday, October 12, 2010

EA shares drop 5.95% on Medal of Honor Reviews

   I completed my buying of Electronic Arts shares today on the drop this afternoon. I am now sitting on 4,000 shares that I've purchased in increments over the course of the past 8 months. When I saw the shares under pressure today from what I consider BS news about "mediocre" early reviews, I had to take the opportunity and buy. EA could continue to drop in the next few days but I'm comfortable in the position and I may add 1,000 more shares if I can get them at $16.

   The next position I'm considering is AMZN. I already own shares in my core brokerage account but I'm thinking of buying trading shares because it's breaking out nicely. I tend to buy a stock when it goes higher and then add to the position as the shares continue higher. My target on AMZN is $200 for the first level but I could see it running all the way up to $300. Amazon's market cap stands at $70 billion but I think it's a $140 billion dollar company in the next 5 years. What happens after it hits $300? It'll probably crash all the way down to the single digits like it did during the 2000-2001 dot-com crash. I never fall in love with a stock but I see the potential appreciation in EA and AMZN's share price over the next 60 months.

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