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As E3 Opens, The Motley Fool Is High on Video Game Stocks

By gamepolitics

At the intersection of Wall Street and E3 2009, financial website The Motley Fool has given the video game business a big wet kiss, naming it "The One Industry You Must Own."

Stock Pickers at TMF - some of whom are attending E3, by the way - like the industry's low debt, high margins and 5-year growth projections:

The average video game company is growing faster, is more profitable, has a cleaner balance sheet (only a handful of video game stocks have any debt whatsoever), and actually trades at a lower forward earnings multiple than the S&P 500...

pure gaming outfits like Activision Blizzard are just the tip of the iceberg. Component makers like NVIDIA (Nasdaq: NVDA), Logitech, and Sony (NYSE: SNE) are all hard at work developing next generation gaming platforms, graphics, and accessories...

Sales of games designed for mobile devices are going to surge...

So, which stocks, specifically, does TFM recommend? Unfortunately, they want to you to subscribe to their newsletter to find out.

Personally, I prefer the blindfolded chimp/dartboard method of picking stocks, but to each his own.

Full post as published by GamePolitics.com on June 01, 2009 (boomark / email).