'Mad Mail'

Activision Blizzard Inc. (ATVI)

Q:      Jim,
You are extremely mistaken in saying stay away from Activision Blizzard Inc. (ATVI) and go with the big dogs. I am assuming that you are referring to Electronic Arts (ERTS) here. They own Guitar Hero and Call of Duty, the two leaders in the field currently. Most importantly, after completing their merger with Blizzard, they now own online games such as World of Warcraft, which has 11.5m subscribers paying some $10 - $15 per month to play online, generating huge cash flow for the company. The company already has $3b in cash with no debt, and a $1b stock buyback in place.
Mike

Jim:    Mike, listen, no I am not recommending the big dogs… I did like at one point, GameStop Corp. (GME)… but I don’t like retail… look you bring up some good points… I recommended it for trade a couple of years ago, we made real money… I have never looked at it again… I don’t like the gaming business anymore… but you know what, I read your email because I thought that it sounded interesting enough that I thought that people should take a look at it…. even if I don’t like it.

'Mad Mail'

General Question...

Q:      Jim,
Everything is bad, we know that and there does not seem to be a short-term fix that anyone in the administration is willing, able, or even knows how to offer. Accepting that, for now, I would love to see a show or portion of a show that prepares us for the coming inflation and how best to protect us against it. Can you please tell us what to do now to protect us in the future?
James

Jim:    It is why even though I said that gold is going down that I want you to buy gold into the weakness… because I fear one day that inflation is coming back… every portfolio should own a little gold… that is the protection.

'Mad Mail'

Cisco (CSCO*)

Q:      Jim,
Cisco has spent billions on its stock buybacks over the years and sits on about $29b in cash as of the latest report. Most of the buybacks have just covered the huge stock giveaways to directors and employees. A measly 10 cents a quarter would cost the company $2.3b per year and yield 2.6% based upon last week’s closing price. Time for you to get after John Chambers. He is no better than the others you mentioned on last week’s buyback show.
Chris

Jim:    I have not been happy with Cisco’s buyback … I wish that they would have a dividend… I do believe in the company and John Chambers… I own it for ActionAlertsPlus.com, my charitable trust… but I do believe that they should not be doing a buyback and that they should be doing a dividend… and maybe that is enough to sell, but I don’t think so.

'Mad Mail'

Tata Motors Ltd. (TTM)

Q:      Jim,
TaTa Motors is about to roll out the Nano, known as the cheapest car in the world, on March 23. With the volume of people in that part of the world needing cars, do you see this stock moving up? Also, it looks like TTM is an accidental high yield right now.
Mark

Jim:    I recommended TTM… I had a really good trade.. I never look back… I am not going to recommend any auto companies on this show… there is too much risk.

'Mad Mail'

General Question...

Q:      Jim,
60 Minutes did a segment a few months ago saying Alt-a and interest-only loans still need to adjust in 2009 and 2010. If the rates of default are high for these loans, will it impact your call for a housing bottom in July?
Aaron

Jim:    I am counting on the administration to do a lot of things beside what they have already done to make it so that housing is more affordable… and I do not believe that the Alt-a interest only loans are going to impact my call for the bottom… I don’t believe it that I think that so few homes are being built… that there is so much demand when housing comes down in price… and the government is going to make mortgage money so plentiful that we are going to chop right thru the supply.