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Trading idea of the week: Activision Blizzard

Activision Blizzard Chart

Check out our trading idea of the week below.

Trading idea of the week

NASDAQ:ATVI - Activision Blizzard Inc - BULLISH BIAS

  • Key levels on the chart - consider taking trades from key support/resistance zones.
  • Microsoft's proposed buyout presents the potential for shareholders to realise its value.

  • Amid management scandals, Microsoft has made an offer to buy ATVI for US$95 per share.

  • Activision first appeared in the Berkshire portfolio after it was purchased by one (or both) of their smaller money managers – Todd Combs & Ted Weschler.
  • Berkshire’s bet on Activision is a return to the old days of “workouts” for Buffett – a simple bet on Microsoft’s deal being approved, and shareholders capturing the spread between the current market price and Microsoft’s offer of $95/share.
  • I suspect Buffett (with help from his other managers) wouldn’t mind owning the underlying business should the deal fall over too, as it has a strong track record of earnings growth.


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