Out Fox The $treet

According to the Wall Street Journal, Take-Two Interactive (TTWO) is paying the NBA $1.1 billion over 7 years for the license to create NBA 2K. Clearly, the success of the franchise is always going to come at an ever increasing cost similar to TV deals with sports leagues.

Activision Blizzard is down nearly $40 from the highs near $85. Their prime Activision and Blizzard game franchises have a whole mobile world waiting for expansion. The interactive entertainment giant has a strong moat evident by 30% operating margins. The stock trades at 17x 2019 EPS estimates and is likely to dip further based on the CFO firing. Like most stocks lately,   Activision Blizzard   ( ATVI ) has seen the stock take a substantial hit. Some of the $40 hit is justified based on disappointing numbers, but the game developer is riding a strong industry for the next decade to build an interactive entertainment giant without the large content costs of other entertainment players. Read the full article at Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details .   

After reading an  article  from  StreetAuthority  about companies with the fastest growing earnings, it got me looking into the companies not already owned in Stone Fox Capital's Opportunistic models. The companies expecting huge earnings growth next year appear to be overlooked, but one should use the list as a starting point for research. The report is only as good as the underlying data. Not to mention that analyst estimates typically aren't up to date so reports can easily give false positives. StreetAuthority  makes a good point that these stocks expect to more than double earnings, yet they all trade for a PE of less than 13. Based on that combination, all of the stocks appear cheap. Now the question is whether the growth will continue on into calendar year 2013-- or if it's just a one year fluke. Another telling sign will be the direction of estimate changes for next year. It's typical for analysts to not update estimates leaving a wide variation, so if...