Yesterday in class we had the pleasure of hearing Christian Cavaretta pitch
Activision for the SMIF portfolio. Activision is the largest interactive gaming company (Video games), with three main components – Activision (Console games), Blizzard (Subscription based computer games), and King (Mobile games). Some of Activision’s most famous titles include Call of Duty, Candy Crush, and Overwatch. Christian believed now is the time to buy in this industry, as the switch from disc based games to downloadable content will significantly improve margins; with downloadable content, Activision does not have to produce/package games, and is also able to push downloadable expansions (IE Map Packs).
Even with the most conservative of estimates, Christian is confident that Activision is currently undervalued in the market. He motioned to purchase 450 shares of ATVI; the motion passed unanimously.