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sean  
#1 Posted : Monday, June 18, 2007 11:36:41 AM(UTC)
sean

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I'm not 100% sure that this belongs here, but I hope people will indulge me on this.
I have about a 90 minute commute each day to and from the office, the majority of which is spent on a commuter rail train, so I have a good chunk of free time each day. I find most of that time is taken up in one of four areas: Movies, Music, Books, and video-games.
Now, certainly there are quite a few companies out there providing these forms of entertainment, and many of them have been around for years so I would tend to assume that they have an idea what they're doing, business-wise. But while listening to a podcast this morning on my train ride in, I heard two stories that made me wonder who's investing in some of these companies.
The first story was about a company named Majesco that has a very popular cooking themed game out now. At first I thought that in itself was interesting, but the real story was that it was only thanks to very large sales of this game that the the company wasn't any longer in danger of being de-listed from the stock exchange.
The other story was about Microsoft paying some other game company (Take-Two) about 50 million dollars to make sure that there are some extra bonuses in the next game from that company coming out for Microsoft (For those that don't follow video games, MS made the X-Box and recently released X-Box 360 gaming consoles, which in recent times have given Sony and Nintendo a real run for the money in home video game machines.) Again, the real part of the story was that thanks to this 50 million dollar cash infusion, the company recently reported that it expected to have it's first profitable quarter in about a year and a half.

So I ran a screen with our online tool today, and the highest rated company in the areas I was looking at came out with a 2.6 (The stock was Books-A-Million, Ticker - BAMM if anyone's interested.) I've pasted in below the screening criteria I used. Anyone checking it out will notice that Microsoft isn't on the list  While they do have a hand in lots of markets, their primary one is still home and business computers and the software for those computers.


So looking at the results using the screening criteria below, who's investing in these companies?
And
Do you think it will ever be possible to invest in companies that rely essentially on the tastes of the average consumer?

Entertainment - Diversified  -  Movie Production, Theaters  -  Publishing - Books  -  Toys & Games  -  Gaming Activities
Multimedia & Graphics Software  -  Specialty Retail, Other  -  General Entertainment  -  Music & Video Stores
Toy & Hobby Stores

Minimum Take Stock Quality Rating - Unacceptable
Maximum Take Stock Quality Rating - Desirable

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