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Macke Takes On The Street

Take one stock – add a trader and an analyst with two different opinions; and you get “Analyze This!” Todd Mitchell is the Senior Media Analyst with Kaufman Brothers. Last year, he was StarMine's topped ranked video game analyst. But his recent note on Activision (ATVI) has The Lone Wolf howling mad. Jeff what's the problem?

Jeff Macke says he’s long ATVI and this stock is his favorite software play in the space. (In case you’re wondering, Nintendo (NTDOY) is his favorite hardware play). Jeff particularly likes their Guitar Hero product and believes it has great potential.



(Guitar Hero is a video game in which the controller is a guitar simulator and the "guitar" sells for $80 - $100.)

Jeff says he expects ATVI to steel market share from Electronic Arts (ERTS) because he thinks Guitar Hero represents the next generation of video games.

Todd Mitchell says the stock is trading on momentum not fundamentals. Mitchell agrees that it’s indicative of the type of game to come, but says the profit comes from gamers who have to buy the plastic guitar. He doesn’t see profits remaining strong, long term, based on that alone.


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Trader disclosure: On June 6 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:Macke Owns (SWY), (ATVI), Najarian Owns (AAPL), (AMTD), (ERTS), (FMD), (NVDA), (NFI), (PGR); (.VIX), (BIIB), Bolling Owns (NMX), Gold, Bolling Is Short S&P Futures; Bolling Is Short Nasdaq Futures; Bolling Owns Natural Gas Futures; Bolling Is Short (FXI) And Owns (FXI) Puts; Pete Najarian Is The Co-Founder Of optionmonster.com