Posts for Ticker ‘HALO’

Biotech Business Daily (RIGL, BIIB, ARRY, ALNY, FOLD, HALO, AOB, STEM)

Here are some of the top stories affecting key drug and biotech stocks that have links through to more in-depth coverage and analysis today at the website BioHealthInvestor.com:

Rigel Pharmaceuticals Inc.’s (NASDAQ: RIGL) Phase IIb trial results Thursday morning of its rheumatoid arthritis candidate R788, is boosting its stock on speculation it may help the company attract a clinical partner.

Biogen Idec Inc. (NASDAQ: BIIB) is enjoying a second day of gains after its new PEGylated interferon beta-1a (BIIB017) for relapsing multiple sclerosis (RMS) received an FDA Fast Track designation.  This might be a game-changing event for the company with some risks as well.

Array BioPharma Inc. (Nasdaq: ARRY) now says it will discontinue development of ARRY-797 in chronic inflammatory diseases. Attention may now turn to Array’s ARRY-162, another anti-inflammatory that showed much more promising efficacy.

Also, see our in-depth feature this week on five fast-growing biotechs with improving analyst estimates: Alnylam Pharmaceuticals Inc. (Nasdaq: ALNY), Amicus Therapeutics Inc. (Nasdaq: FOLD), Halozyme Therapeutics Inc. (Nasdaq: HALO), American Oriental Bioengineering Inc. (NYSE: AOB), and Stemcells Inc. (Nasdaq: STEM).

-The 24/7 Wall St. Team

Posted on: July 9, 2009 – 11:09 am in Biotech, Drug companies, FDA, Medical, , , , , , , ,

BioHealth Business Daily (CI, AET, MYL, JAZZ, PTIE, GSK, ALNY, FOLD, HALO, AOB, STEM)

Here are some of the top stories affecting key drug and biotech stocks that are covered in-depth today at BioHealthInvestor.com:

Cigna corp. (NYSE: CI), Aetna Inc. (NYSE: AET), and other managed care companies are rising despite making health care reform concessions, as shareholders see they have a seat at the bargaining table.

Mylan Inc. (NASDAQ: MYL) has received FDA approval for a generic version of an AstraZeneca (AZN) prostate cancer drug — a rather unusual new generic.

Jazz Pharmaceuticals Inc. (Nasdaq: JAZZ) shares are up more than 25 percent after the company took steps to ease a cash crunch that had curtailed drug development.

King Pharmaceuticals (KG) and Pain Therapeutics (PTIE) said  they expect to resubmit a new drug application in mid-2010, slightly later than anticipated.

GlaxoSmithKline (NYSE: GSK) announced a positive study on its Cervarix vaccine, although it’s unclear if the company can play catch-up to Merck & Co.’s (NYSE: MRK) Gardasil.

See our in-depth feature this week on five fast-growing biotechs with improving analyst estimates: Alnylam Pharmaceuticals Inc. (Nasdaq: ALNY), Amicus Therapeutics Inc. (Nasdaq: FOLD), Halozyme Therapeutics Inc. (Nasdaq: HALO), American Oriental Bioengineering Inc. (NYSE: AOB), and Stemcells Inc. (Nasdaq: STEM).

-The 24/7 Wall St. Team

Posted on: July 7, 2009 – 11:03 am in Biotech, Drug companies, FDA, Medical, Trading Alert, , , , , , , , , , ,

The Five Growth Biotech Names To Watch Right Now

biotechAlnylam (Nasdaq: ALNY) leads a short list of some of the fastest-growing biotech stocks
where analyst estimate revisions continue to rise.

BioHealth Investor began by analyzing 171 stocks in the biotech sector based on revenue growth over the trailing four quarters, identifying 30 stocks in the sector with better
than 50 percent revenue growth over the past 12 months.

We then screened those 30 stocks to look for those very few names that have seen both strong growth in at least the past two years and positive analyst estimate revisions in recent months, in an effort to find stocks with strong trends that still have potentially improving operations going forward.

The work resulted in growth biotech stocks to watch: Alnylam Pharmaceuticals Inc. (Nasdaq: ALNY), Amicus Therapeutics Inc. (Nasdaq: FOLD), Halozyme Therapeutics Inc. (Nasdaq: HALO), American Oriental Bioengineering Inc. (NYSE: AOB), and Stemcells Inc. (Nasdaq: STEM). Read More »

Posted on: July 6, 2009 – 4:27 am in Biotech, , , , ,

Biotech Business Daily (ANIK, ATHX, HALO, IDRA, MRK, OMPI, REGN, DDD, SQNM)

There are lots of names moving in biotech and related fields today, and below are some of the top movers:

Anika Therapeutics Inc. (NASDAQ: ANIK) moving up after reporting solid first quarter earnings this morning. The leader in tissue protection products and healing and repair based on hyaluronic acid (“HA”) technology showed double digit revenues in each product line for total revenue growth of 39%. Shares are up over 12% at $9.68. The 52-week range is $7.85 to $22.49.

Athersys, Inc. (NASDAQ: ATHX) dropping a whopping 23% today on no relevant news. Shares are down $0.70 to $2.30. The 52-week range is $1.55 to $10.00.

Halozyme Therapeutics, Inc. (NASDAQ: HALO) up over 8% to $5.37. They announced that first quarter earnings will be released May 8 after market close and on May 9 they will provide a pipeline update. The 52-week range is $4.19 to $11.00.

Idera Pharmaceuticals, Inc. (NASDAQ: IDRA) announced today that under its collaboration agreement with Merck (NYSE: MRK), they achieved a preclinical milestone with a novel Toll-Like Receptor 9 agonists for an adjuvant in cancer vaccines. Idera should receive a milestone payment from Merck. Idera is up 3% to $14.34 off a 52-week range of $6.21 to $14.00. Merck is up over 1% to $38.77 on a 52-week range of $ 36.80 to $61.62. 

Obagi Medical Products, Inc. (NASDAQ: OMPI) is up over 7% to $8.62 on now news. The 52-week range for the skincare developer is $6.80 to $25.60.

Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) up 5% today after first quarter results were released this morning. They showed a loss of $11.6 million, or $0.15 EPS, narrower than the $29.9 million loss in first quarter 2007. Shares are up $1.11 to $20.73. The 52-week range is $13.55 to $28.74.

SCOLR Pharma Inc. (AMEX: DDD) up over 8% today after announcing that it entered into a lease buyout deal to move into a cheaper location, with the proceeds of over $4 million, the company said it will be able to fund 2009 expenses. Shares are trading at $1.26. The 52-week range is $0.13 to $4.07.

Sequenom Inc. (NASDAQ: SQNM) up today after reporting financial results after close yesterday. They posted a net loss of $8.6 million compared to a loss of $3.8 million in first quarter last year. Revenues increased by 7%. Shares are trading up over 8% to $6.85 on a 52-week range of $3.16 to $11.63.

Rachel Lopez
May 1, 2008

Posted on: May 1, 2008 – 1:58 pm in Biotech, , , , , , , , ,

Biotech Busine$$ Daily (ACAD, AMLN, CVTX, HALO, KOSN, MCU, NVAX, POZN, REGN, SIRT)

If you thought biotech news was getting quiet going into earnings season, think again.

Acadia Pharmaceuticals Inc. (ACAD) presents Phase II data on pimavanserin, a treatment  for Parkinson’s disease psychosis (PDP) at the 60th American Academy of Neurology Annual Meeting today. According the results from the study, pimavanserin is safe and effective at improving psychosis scores without hindering motor abilities. Shares are up $0.46 to $8.36 on a 52-week range of $7.63 to $17.33.

Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) up almost 3% in mid-morning trading. They announced that the earnings call is schedule for March 21. Trading at $30.42 on a 52-week range of $23.75 to $53.25.

CV Therapeutics, Inc. (NASDAQ: CVTX) soaring today after they announced Tuesday that they will receive $185 milliion from TPG-Axon Capital for rights to the sales of Lexiscan, a drug for patients that are unable to exercise during heart tests and was granted FDA approval last Thursday. Shares are up over 15% to $8.63 on a 52-week range of $5.41 to $13.74.

Halozyme Therapeutics, Inc. (NASDAQ: HALO) announced pre-clinical findings in combinations of bisphosphonates and rHuPH20 at the American Association for Cancer Reseacrch conference today. The study showed that a combination of these molecules could reduce local irritation from chemotherapy by allowing a subcutaneous route of administration. Shares are up over 10% to $5.99 on a 52-week range of $4.19 to $11.00.

Kosan Biosciences Inc. (NASDAQ: KOSN) is still steadily rising after Monday announcement that Phase II testing for Epothilone KOS-1584 initiated. The drug targets patients with non-small cell lung cancer. Shares are up over 11% to $2.00 today. Monday, shares opened at $1.50. The 52-week range is $1.28 to $6.53.

Medicure Inc. (AMEX: MCU) up by 40% with the announcement that Phase II results for MC-1 and lisinpril for patients with type-II diabetes and hypertension will be presented at Arteriosclerosis, Thrombosis and Vascular Biology (ATVB) Annual Conference today. The data from the study was previously released. Shares are up 40% to $0.09 on a 52-week range of $0.05 to $1.64.

Novavax, Inc. (NASDAQ: NVAX) reported positive results in preclinical studies of Trivalent, a seasonal influenza vaccine. Phase II testing is hoped to begin in the third-quarter this year. Shares are up over 5% to $2.51. The 52-week range is $2.24 to $4.38.

Pozen, Inc. (NASDAQ: POZN) skyrocketing today on news that migraine drug Treximet has received FDA approval. They partnered with GlaxoSmithKline (GSK) for development of the drug. It is a follow up for Glaxo’s similar drug, Imitrex, which is set to lose patent protection in 2009. Pozen up 34% to $14.19 on a 52-week range of $8.29 to $19.75. Glaxo is up marginally to $42.57.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) moving higher than the rest today on no new developments. Shares are up $1.37 to $19.60 on a 52-week range of $13.55 to $28.74.

Sirtris Pharmaceuticals, Inc. (NASDAQ: SIRT) published a report by Scientific Advisory Board Co-Chairs that showed first in-vivo data demonstrating that SIRT1 enzymes suppress tumor development in colon cancer cells. Shares are up almost 5% to $12.56 on a 52-week range of $9.50 to $21.99.

Rachel Lopez
April 16, 2008

Posted on: April 16, 2008 – 11:18 am in Biotech, , , , , , , , , ,

Biotech Movers & Shakers (FOLD, BAX, CYTK, DSCO, HALO, IMCL, SGEN)

Amicus Therapeutics (NASDAQ: FOLD) had a late afternoon surge, up 7% to $10.73. The 52 week range is $9.00 to $18.22.

Baxter International (NYSE: BAX)—contaminant in recalled Heparin identified by the FDA today. Shares rose slightly to $58.18 in response to board approved $2 billion stock buyback program. maybe it’s a major drug stock, but this has been a pending issue for some time.

Cytokinetics Inc. (NASDAQ: CYTK) up almost 10% to $3.38 today; annual report filed last week.

Discovery Laboratories Inc. (NASDAQ: DSCO) up over 10% today to $2.38 on a late afternoon rise on no new news.

Halozyme Therapeutics, Inc. (NASDAQ: HALO) up 23% today to $6.06 on heavy late afternoon trading volume and no news. Halozyme dipped earlier this week due to downgrades.

ImClone Systems (NASDAQ: IMCL) showed little response to upgrades in anticipation to cancer clinical trial data. Shares inched up $0.20 to $43.30.

Seattle Genetics Inc. (NASDAQ: SGEN) upgraded by RBC Capital Markets and noted for strong research platform. Up 4% to $8.70. The 52-week range is $7.20 to $3.44.

Rachel Lopez
March 19, 2008

Posted on: March 19, 2008 – 3:56 pm in Biotech, , , , , , ,

EA To Reap Rewards From LucasArts (ERTS)

LucasArts and BioWare Corp. today announced that they have entered into an agreement to create an interactive entertainment product.  Normally we wouldn’t cover this because both are private companies.  But BioWare is in the process of being acquired by Electronic Arts (NASDAQ:ERTS), and we have covered how EA wants to come up with more answers to the success of the Halo franchise.  This is not the first such agreement between the two companies.

The product, details of which will be unveiled at a later date, will be developed and published by BioWare and LucasArts, and will push the boundaries of the gaming market by utilizing the strengths of both companies to deliver an innovative, high-quality experience.

It sure sounds like a new MMORPG (massive multiplayer online role playing game) is coming down the pipe.  These and other companies are soon to be covered in our Special Situation Investing Newsletter because of some radical changes that are coming in the video game sector in 2008.  Bungie Studios is on the path to independence, at least somewhat.  Certain previews will be made to our free email distribution list.

Jon C. Ogg
October 30, 2007

Posted on: October 30, 2007 – 9:00 am in Video Games, , ,

Microsoft Earnings: Goldman Sachs Must Know Something (MSFT)

Goldman Sachs has one of the more premiere research shops for the bulge bracket firms on Wall Street and investors look to its "Conviction Buy List" with regularity.  It might not seem odd that Goldman Sachs added Microsoft (NASDAQ:MSFT) to its Americas Conviction Buy List on a regular day.  But when it is about a week before earnings and the day Intel and others are reporting it makes it very difficult not to wonder if the analyst didn’t get some insight that might not be available elsewhere.

Goldman Sachs’ note from analyst Sarah Friar says that it expects upside to Microsoft’s first quarter results based upon the numbers out of Halo 3, the aQuantive buyout, currency benefits, and new product cycles like Office 2007 and Windows Server 2008 driving what Goldman estimates at 12%+ growth into fiscal 2009.  Goldman Sachs also noted that the current valuation remains at a significant discount to the software group and in-line with S&P peers, while sentiment is "almost overwhelmingly negative."  The summary concludes that this will take the stock higher on a better quarter.

Another wild card here is that these notes are no longer from Rick Sherlund, the former Goldman Sachs analyst that was considered the honcho of all analysts that covered Microsoft.  Microsoft was removed from the Conviction Buy List back on April 10, 2007 and shares closed at $28.21 that day.  Shares are up 1.2% today at $30.42.  Estimates were already raised last week and Goldman Sachs has a $37 target for the stock.  It isn’t our take that the analyst got anything secret, but maybe some solid research came in ahead of these other tech earnings. There is either some performance chasing going on, or there is some strong insight here from investigative research.

Jon C. Ogg
October 16, 2007

Posted on: October 16, 2007 – 1:05 pm in Analyst Calls, Software, , , , , , , ,

Electronic Arts Wants Its Own Halo; Buys BioWare & Pandemic (ERTS, MSFT)

Electronic Arts Inc. (NASDAQ:ERTS) has announced what is roughly an $800 million diluted (before any long-term debt absorption) agreement with Elevation Partners to acquire VG Holding Corp., the owner of both BioWare Corp. and Pandemic Studios. This acquisition is meant to give EA a stronger competitive position in key genres in interactive entertainment: action, adventure and role-playing games.

The two studios have been recognized for creating some of the highest-quality games in the industry.  BioWare Corp. and Pandemic Studios have ten franchises under development, including six wholly owned games. BioWare Corp. is currently developing the highly anticipated Mass Effect, which will be published by Microsoft in November (NOV. 20), and is in the early development stages of a massively multiplayer online game (think EverQuest or WOW, but not those per se).  Pandemic Studios and BioWare Corp. employ roughly 800 people across four studios located in Edmonton, Canada; Los Angeles; Austin; and Brisbane, Australia.

EA will pay up to $620 million in cash to the stockholders of VG Holding Corp. and will issue up to an additional $155 million in equity to certain employees of VG Holding Corp., which will be subject to time-based or performance-based vesting criteria. EA will also assume outstanding VG Holding Corp. stock options. In addition, EA has agreed to lend VG Holding Corp. up to $35 million through the closing of the acquisition.  The transaction is supposed to close in January 2008 and will be dilutive to EA’s 2008 EPS by $0.30 to $0.40 on a GAAP basis and by $0.05 EPS on a non-GAAP basis. 

Microsoft’s (NASDAQ:MSFT) Halo 3 is well over $300 million by now in sales for the first two weeks and the path for Bungie Studios to become its own independent company is going to potentially shake up the industry.  Sure sounds to me like they want their own version of Halo or WOW to me……..

We have been reviewing this upcoming "launch" of Bungie into its own company.  There are still more questions than there are answers.   But this will create a unique special situation investing scenario that will be made available first to subscribers of our Special Situation Investing Newsletter.   Shares of Electronic Arts closed down 2% at $58.69 today, but shares are down another 2.5% at $57.25 in after-hours trading.

Jon C. Ogg
October 11, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the Special Situation Investing Newsletter and he does not own securities in the companies he covers.

Posted on: October 11, 2007 – 3:52 pm in Mergers and Buy Outs, Video Games, , , , , , , ,

Microsoft’s Gift: A Bungie Spin-Off (MSFT, ERTS, TTWO, ATVI, THQI)

Microsoft (NASDAQ:MSFT) is giving investors and the public a gift today.  The company has announced that Bungie Studios, the creators of Halo 3 and the Halo franchise, is going on the path to becoming an independent company.  It isn’t clear if this will ultimately be an IPO or a spin-off, but this will be a huge event.

Last night came the announcement that the company already saw Halo 3 generate $300 million in revenues in just the first week alone, although we noted that this will quite easily and quite rapidly reach $500 million.  It is when, not if.  We have noted how investors were looking at this, and now there is going to be a new way to look at it.  We have joked before about the XBOX franchise being spun-off to existing holders, but this will do for now.

Microsoft will retain an equity interest in Bungie, at the same time continuing its long-standing publishing agreement between Microsoft Game Studios and Bungie for the Microsoft-owned "Halo" intellectual property, as well as other future properties developed by Bungie.  Bungie Studios will remain in its current location in Kirkland, Wash.

We have already stated how the next generation games of Halo are already under conceptual development despite this being the "end the fight" version of the game. All you have to do is follow the money, it ALWAYS works.

Interestingly enough, Electronic Arts (NASDAQ:ERTS), THQ Inc. (NASDAQ:THQI),  Activision (NASDAQ:ATVI), and even Take-Two Interactive (NASDAQ:TTWO) are all trading higher.  This will end up becoming quite a unique situation for our readers of the SPECIAL SITUATION INVESTING NEWSLETTER as more data becomes available, and we eagerly look forward to providing special coverage of this special situation.

Jon C. Ogg
October 5, 2007

Jon Ogg produces the Special Situation Investing Newsletter and he does not own securities in the companies he covers.

Posted on: October 5, 2007 – 10:58 am in IPOs, Video Games, , , , , , , , ,

Forget $300 Million Already…Halo 3 Will See $500 Million Very Soon (MSFT, GME, ERTS, TTWO)

Microsoft (NASDAQ:MSFT) has generated over $300 million in sales from Halo 3 titles in the first week alone, with $59.95 of that being from me.  There were more than 1.7 million copies pre-ordered, which broke its own record-breaking release of Halo 2 sales and beat the record sales set for Spider-Man 3 and of Harry Potter movies.  Video games surpassed movies in annual sales in recent years.  If you’ve ever played ANY of the Halo games you’ll know why. 

It seems that there are somewhere in the vicinity of 12 million or more Xbox 360 units on the marketplace.  When you include the Xbox 360 console sales for the upcoming holiday season and say that all titles will be the cheap $59.95 version you can see where this can quite easily generate $500 million in sales with less than 10 million copies sold.  There are always lagging sales and these Halo 3 sales will continue.  We haven’t even gotten the release for Halo 3 on PC yet, although several game store managers are not even sure if it will come for PC’s.  We think it will by late 2008, but that’s speculation.  The question isn’t IF Halo 3 hits $500 million.  It’s just how quick it happens that is a question.

If you would like to read the full official story from Microsoft you can see it on the site here.
24/7 Wall St.’s Views on Halo 3:

Jon C. Ogg
October 4, 2007

Posted on: October 4, 2007 – 6:34 pm in Video Games, , , , , , , ,

Disappointment Over Microsoft’s HALO 3 Day One Sales? (MSFT, GME, ERTS, TTWO)

We all know about the incredible hype and demand for Microsoft’s (NASDAQ:MSFT) monster release of HALO 3 from Bungie Studios.  The figure that is being thrown out is roughly $170 million in the first 24-hours in HALO 3 sales.  This one had 1.7 million pre-orders for the three game versions.  This should have launched last Thursday at midnight and they could have tallied up a monster number for the weekend instead of just one day.  By the way, there is no way to say "just" when you look at the one day numbers.

There is no reason to put the $170 million opening number as anything shameful.  For a product this kicks you know what, and big time.  That blows doors on movie releases.  In my late-thirty-something mind I almost calculated movie tickets at the $5.00 level and then at the $8.00 level, but then I thought of New York and Chicago where $10.00 is quite the norm (if that went up in the last few months, well sorry..).  So at the full-ticket price a $170 million one-day debut would be 17 million top-end movie tickets at full tilt.  At a $59.99 base price to fully dilute the premium packages, which isn’t fair at all might I add, for all practical purposes is 2.8333 million copies rang up at the registers; and if you take the 20% hype-launch premium for a smoothing out through time then you’d have roughly 2.36 million units after you deduct a premium sale feature.

Regardless of what median game price you use on to of the $59.99 basic game price, this is massive.  The numbers speak for themselves.  I could say I wanted to see a break above this $200 million mark that some Wall Street analysts wanted to see on the first day.  But this number is massive, even if I would liked to have seen that.  The logical trade would have been to expect some profit taking in GameStop (NYSE:GME) shares after the massive price appreciation into this release.  It somehow managed not to happen if you can believe it.

The Master Chief is kicking serious @$$ and it is hard to argue that this won’t be a driver for a little longer.  We noted previously that 2008 compared to 2007 is going to be almost impossible to reach the growth rates of 2007 compared to 2006.  That hasn’t changed.  We still expect GameStop will probably issue upside guidance for one quarter and maybe even another.  But excessive stock price moves for equity investors ultimately answer to the dark side.

If you review our full video game coverage sector you’ll see we’ve been a proponent on GameStop for quite a long time.  There is almost no way their guidance could be bad.  But we are also realistic on the money side of investors.

As far as Microsoft stock goes, how about a new mascot.  Maybe a bad @$$ helmeted soldier isn’t an appropriate icon for most corporate office suite software packages.  But it is for at least a temporary period.  Once again, Microsoft needs to change its stock nickname from "Mister Softie" to the new and improved "Master Chief" from now on.

As for the rest, time to play….  Trivia question: What is more Fun? Covering the stock market or playing HALO????

Jon C. Ogg
September 27, 2007

Posted on: September 26, 2007 – 11:20 pm in Video Games, , , , , , , , ,

Halo’s Next Generation (or Halo 4) Already Guarded (MSFT, GME, BBY)

The lines are out.  The costumes are on.  Halo 3 is on imminent release.  10 minutes for the east coast.  Halo 4, or the next version/series of Halo, is already under development.  Have I been told so? NO.  Have I been told the opposite?  YES.  Do I believe this is the end? Hell No!

Predicting sequels and predicting the outcome of a mega-hit series is pretty easy if you merely follow the money.  I have no idea of the outcome of Halo 3 beyond the reviews….. Yet.  But I can follow the money, and that is simple.  There will be more Halo "money" for Microsoft (NASDAQ:MSFT).  GameStop (NYSE:GME) and Best Buy (NYSE:BBY) will be banking on it.

I have no clue if Master Chief or the Arbiter make it out of this "last" episode alive.  I would predict the Arbiter bites the dust and takes it for the home team, and Master Chief either lives or is questionable.  But….. IT DOESN’T MATTER……. This is Sci-Fi and way out into the future.  As long as some remnant of DNA exists these soldiers can be brought back.  And even then, more powerful foes and entirely unknown foes of yet can surface.

This was supposed to be Microsoft’s foray into profitability in the entire Xbox franchise. They aren’t about to permanently kill off the ticket in the bread line.

Maybe it’s the Master Chief.  Maybe it’s the Arbiter.  Hell, Maybe they both die.  It doesn’t really matter.  Follow the money!!!!!

Regardless, "Finish The Fight" can not be finished yet.

OK, I have to go get my copy of the game.

Jon C. Ogg
September 25, 2007

Posted on: September 24, 2007 – 11:02 pm in Video Games, , , , , , , , ,

How Investors Are Looking at Halo 3 (MSFT, GME, ATVI, TTWO, BBY)

By now, everyone on earth knows of the launch of Halo 3.  Microsoft’s (NASDAQ:MSFT) Bungie Studios is launching this at Midnight tonight.  This should pretty easily surpass the $125 million in first-day sales from the predecessor Halo 2 title.  But Microsoft is too large of a stock to focus on a video game.  The good news for Microsoft is that this is the event that should help the entire Xbox venture a profitable foray for the company.

The Halo 3 retail sellers are where you have to look from the investor side, and that leaves just one pure-play: GameStop.  On August 17 GameStop (NYSE:GME) stock was at a mere $40.00-ish price with many share price closes being $39 to $41 during the market malaise.  But now shares sit at $55.28 as of Friday’s close, and are up another 1.3% pre-market Monday at $56.00.  This represents over a 30% gain, and we all know the major culprit: Halo 3.

Read More »

Posted on: September 24, 2007 – 8:21 am in Video Games, , , , , , , , , ,

Halo 3: T-Minus Two Weeks (MSFT, GME, TTWO, ATVI, ERTS)

Master_chief_picIn just under two short weeks the gaming event of 2007 will take place: Microsoft’s (NASDAQ:MSFT) Halo 3 hits the shelves.  Halo 3 will launch on September 25, 2007, and this will be a key date for investors that watch video game publishers and sellers alike. 

With September 25 falling on a Tuesday you can bet that schools (and tech support departments) around the U.S. are probably going to have record absentees.  "I can’t come to school today, because I have Arbiter’s flu and the Covenant just has me worn out."  Sure, certain public beta demos have been out for testing and for introduction for a while, but this game already has recorded 1 million copies in U.S. pre-sales and it’s a safe bet that almost every Xbox 360 owner will buy a copy of this game between now and early 2008. 

It’s not really released how many copies of each version were sold or are being made available, but here is what is coming out:

  • The LEGENDARY edition for $129.99 with a collectible helmet case and bonus disks with supplemental content.
  • The Halo 3 Limited edition for $69.99 will have a hard sleek metal cover and a bound collection of information and art plus a bonus disk.
  • The standard edition for $59.99 is likely to be the biggest seller.
  • Of course there is also the OFFICIAL STRATEGY GUIDE for $19.99.
  • For the true enthusiasts, there is even the Xbox 360 Halo 3 Special Edition Console for $399.99.

After the recent Xbox recall gaffe, the Bungie games and Xbox unit needs a blockbuster.  This was the year that the entire Xbox venture was supposed to become profitable, but the charges took care of that.  Also, what about that darned Halo-based movie (and is this a real pre-preview)?

GameStop (NYSE:GME) has to be happiest about one thing: there’s no Chinese lead paint in video games.  Take-Two (NASDAQ:TTWO) already got its bad news out of the way after it delayed its release of the new Grand Theft Auto franchise game until 2008.  Now it looks like it will just be Halo 3 that creates a vacuum for other gaming companies in a couple weeks.

If you are Activision (NASDAQ:ATVI) or Electronic Arts (NASDAQ:ERTS), you might want to wait until after the first week of October before making any major release announcements.  Companies that make video game announcements around that time will not get heard.  GameStop Corp. (NYSE:GME) shares closed up 2.8% today at $50.18, just over 3% from the all-time highs of $51.99.

Hopefully this will help Microsoft (NASDAQ:MSFT) finish its own fight.  Microsoft’s stock should no longer be called "Mister Softie."  It’s new nickname should be "Master Chief."  If you want all the last minute news on it, you can access the Xbox.com site here.

What would a spin-off of Bungie and Xbox be worth to Microsoft shareholders?  It doesn’t matter because it almost certainly won’t happen, but it would be an interesting exercise.

Jon C. Ogg
September 11, 2007

Jon Ogg produces the 24/7 Wall St. SPECIAL SITUATION INVESTING NEWSLETTER; he does not own securities in the companies he covers.

*IMAGE PROVIDED BY BUNGIE STUDIOS.

Posted on: September 11, 2007 – 5:46 pm in Video Games, , , , , , , , ,