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Reader Comments (Page 1 of 1)
11-06-2008 @ 9:22PM
Scoobydruid said...
Yup it's just GAAP. The cash flow from selling you the game is recognized immediately, but the sales (and therefore earnings) from the sale get spread out.
As a portfolio manager, I'm more interested in cash flow than earnings. Companies go bankrupt because they run out of money, not earnings.
Fortunately I own ATVI (Activision Blizzard) in my portfolios and it did great today! Woot!
Scoobydruid the PM
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