DreamWorks Animation SKG, Inc. (Nasdaq: DWA): Stock of the Day

Judith Martin, The Investment U Research Team

For less than the cost of just one mango margarita – I won’t get into the cost of the popcorn – you could be in an air-conditioned theater with friends or family for the matinee showing of a summer blockbuster.

Like many looking to get away from it all, I’ve been spending most of my summer Sundays at the movies. Too often, as I stroll in late, I find the theater is already packed.

It’s not surprising. Entertainment often does well in economic downturns, leading many to call it “recession proof.” More correct, would be to call it “recession resistant.”

The fact is, there are a number of movies and movie companies that are raking in the dough right now. And there’s no company profiting

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Video Game Slump Nothing New

by The Investment U Research Team

Reports from last month indicate that the sales of video games were lower in April and have been lower for the past two months. But the numbers, while down, still represent a large increase of 2007.

But there’s something else going on here as well: Nothing new…

There haven’t been any spectacular new games or consoles on the market this year. No new Halo’s or Vice City’s, no new Wii’s. The industry is still making money and players are still buying occasional games here or there, but they aren’t splurging on new stuff like they have in the past.

But this content drought isn’t a bad thing.

It just means that companies like Take-Two Interactive Software (Nasdaq: TTWO) and Activision Blizzard (Nasdaq: ATVI) will find

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For Immediate Release

Chicago, IL - May 4, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Walt Disney Company (DIS), Activision Blizzard (ATVI), California Pizza Kitchen (CPKI), Goldcorp (GG) and Teva Pharmaceutical Industries Ltd. (TEVA). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.

The Week's Events

Another busy week.

Results from the bank stress tests are penciled for Thursday. The release date was pushed back after several banks objected to the initial findings. It's not just the results that will matter, but also how much validity the financial markets give them.

On the earnings front, about 850 companies are confirmed to report, including 86 members of the S&P 500. Dow components Kraft

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div style="text-align: justify;"Goldman Sachs upgraded span style="font-weight: bold;"Activision Blizzard (NASDAQ:ATVI)/span to Buy from Neutral and adds the stock to their Conviction Buy list with a $14 tgt.br /br /Firm believes the timing and magnitude of earnings catalysts in the form of game sales and active share repurchases should restart the trend of positive EPS revisions and improve sentiment on the stock while overhangs fade in importance. In a new detailed analysis, they find ATVI shares over-discount music genre fatigue and the Warcraft transition. Goldman sees Warcraft and other IP offering improved visibility into their c. 2%/8% revised, above consensus 2009/2010 EPS and sustainable earnings as a key driver of stock appreciation through 2H’09.br /br /span style="font-weight: bold;"Catalyst/spanbr /The primary catalysts spurring visibility into sustained earnings power and their above consensus $0.80 2010E EPS will be the 2H09 game slate, led by perennial titles (Call of Duty, Guitar Hero, World of ...

The video game industry has a reputation for being recession proof. And soaring sales this year suggest there are some great profit opportunities in the sector. That’s why the Money Morning team have created this comprehensive guide to virtual investing.

If you want to invest in video games there are, essentially, four ways to do it…

Investing in video game publishers. Investing in video game retailers. Investing in companies that make video game consoles. Investing in companies that make video game accessories. Game Publishers

These are the companies that make the games. And Electronic Arts Inc. (NASDAQ:ERTS) and Activision Blizzard (NASDAQ:ATVI) are the best bets right now.

Electronic Arts is the publisher of the popular Madden franchise, which gives it a consistent intake

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