Pachter: EA needs to produce investor guidance
by Alexander Sliwinski 
on Feb 5th 2008 1:00AM
Video game analyst to the stars, Wedbush Morgan's Michael Pachter,
wonders why EA decided not to provide any guidance (forecast) for its upcoming 2009 fiscal year, which starts in April. He claims that EA is making a mistake by deferring the guidance until May, thinking investors have become tired of watching EA's stock hover around the $45 mark for the last four years. He goes on to say that shareholders want assurances of EA getting back to form, much like it was in fiscal year 2004 -- before it got stuck in a stock rut.
Pachter's expectation for a guidance from EA stems from the belief that
relatively new EA CEO John Riccitiello was planning on giving more visibility to investors. In addition, he cites EA's continued flirtation with a $60 stock price, which frequently falls back to $45. Pachter should get his guidance wish at EA's first-ever analyst day scheduled for Feb. 12, where the company intends to discuss future growth. Pachter maintains a "strong buy" rating for EA stock, but considering
Activision Blizzard is
now in the same ring as EA, it seems reasonable for EA to give an idea of future financial expectations.
