How deep can hell be? (ATVI) Updates
Updated
The hard times continue for the company that created Diablo (which knows about hell), which has lost 45% from the highs of February 2021.
We are not that far from the bottom hit during the first wave of covid in 2020.
We all know the reasons: the investigation into the sexual harassment of an employee. It is not my interest, to go into the merits, I simply report the facts in relation to trading.
Nothing at an economic level, where the company has always been thriving and one of the most profitable, considering both the turnover from PC, console, and mobile gaming. In particular the mobile sector, many are not aware of, Activision-Blizzard is on the podium second only to Apple.
From a fundamental point of view, therefore, this important collapse is attributable only to the internal question, which, let's be clear, was handled very badly by the company and which above all does not seem to have taken important positions on the fact.
This behavior caused the price to fall below our September purchase price and to mediate, buying again in November at the price of $ 61.7 per share.
This brought the average purchase price to $ 70.71
Right now we are on the POC of the last 2 years, which makes ATVI even more attractive, even if to make a third entry I will wait for $ 55, which literally represents the last volume node of the value area of the last 2 years.
To enter we are already on a very important level, we are clearly talking about an undervalued company, which is at this level for certainly important issues, but which have nothing to do with its economic performance.
Obviously, the question must be resolved immediately, especially considering the relationship with investors.
Reasonably, it is clearer to say that the market has already heavily discounted the problem.
I close by saying that 2022 should be an important year, for the release of Diablo 4, Blizzard's historic franchise, as well as Overwatch 2.
Happy trading
Lazy Bull
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