Jim's
rating on
this stock

STOCK
SYMBOL

Closing
price that
day

Full Company Name & Jim's Comments:

ATVI

11.80

Mad Mail question:

Activision Blizzard Inc. (ATVI)

Q:    I grew up playing my fair share of video games and I would like to know what you think about ATVI.  ATVI is responsible for publishing some of the best-selling video game titles in history, and they're releasing several highly-anticipated titles over the next year.  Will these product releases translate into large profits in the next quarter or has the consumer disappeared from retail markets?

Jim:    This stock has come down enough to make it intriguing to me for a trade to $14-$15, down at $11, but here's the problem...  I think it's going to be a terrible Christmas... I hate to say that, I hate to say that...  And everybody's who has watched this show, or my preceding show, knows that I often disagree with the prognostigators who say it's going to be a bad holiday season... This one is going to be a bad holiday season, because unemployement's going the wrong way.  So please don't stick around (and hold this one too long), please don't...

Price target to buy for a trade up:   $11.00, trading up to $14.00 to $15.00 range, then sell.

AVP

27.02

Mad Mail question:

Avon Products Inc. (AVP)

Q:    I think AVP is getting unfairly sold off.  I think it is a mistake to think that women will stop buying Avon because of the economic downturn.  Think about it, you need MORE makeup, not less, in bad times!  And... Avon is a brand people can still afford.  I believe Avon will do well in a recession for the same reason a retailer such as Wal-Mart (WMT*) will.  Folks may not be willing to buy super high-end cosmetics, but they still need makeup, and Avon is an affordable brand that delivers high quality.

Jim:    I agree with you.  The stock is down way too low.  I totally believe it's a buy.  Not only that... Avon is levered...  I just had an email about Activision (ATVID)...  It's levered the other way.  When unemployment goes up, people take second jobs... they take Avon jobs... and, when Avon has more representatives, it does well.  Remember, a big international company... some worry that the dollar's strong, so the translation will be not-great...  but you have horse sense.

LXK

27.73

Mad Mail question:

Lexmark International Inc. (LXK)

Q:    I was wondering what you think about some of the big employers in my area, such as LXK, Toyota Motor Corp. (TM),  and Affiliated Computer Services, Inc. (ACS)... since people are likely to be asking me about them at Halloween parties...

Jim:    Well, let's see...  Lexmark, not doing well... losing a lot of share.  Toyota, I will never... autos are now becoming more like airlines.  And then I can't recommend them, but I would recommend Honda Motor Co. Ltd. (HMC)... over TM, because well, let's just say...  the Yen's gone... made it so all Japanese cars are too expensive... but I think that Honda has more energy-efficient cars than Toyota.  But I don't want to own any of these.   Affiliated?...  No, no...  I mean, it was going to do a deal.  The deal didn't work out.  I say stay away.    

TM

70.98

Mad Mail question:

Toyota Motor Corp. (TM)

See LXK comments above for:
TM

ACS

38.91

Mad Mail question:

Affiliated Computer Services, Inc. (ACS)

See LXK comments above for:
ACS

HMC

22.75

Mad Mail question:

Honda Motor Co. Ltd. (HMC)

See LXK comments above for:
HMC

LPS

25.89

Mad Mail question:

Lender Processing Services, Inc. (LPS)

Q:    I recently bought LPS, agreeing with you that users of their services would grow with the need for lender processing after the bailout or economic rescue package was passed.  Since your recommendation, it has dropped 30%.  Why?

Jim:    It's a stock... it's a stock... and all stocks are going down.  That said, this one, I think, does great in a recession.  We're just now going into a recession.  I say stick with it.  I say buy more.

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