Activision Inc. was expected to report full year earnings for the year ending March 31st but has said it will be delayed because of “restatements tied to a review of its historical stock option granting practices.”

It would appear that Apple Inc. wasn’t the only hi-tech company stung by poor options practices.

But let’s look at their current numbers because I think think they look quite good. Growth over the coming year is projected at 77%, the stock currently trades at a premium of 74 times earnings. Although that may seem high, it is still under the 52 week high set on May 5th and if you consider that institutional investors pay up to 2 times the growth rate in PE, this stock should be at $30.

That alone isn’t necessarily a reason to invest. Activision also has 3 major franchises going for it which include Spiderman 3, Shrek 3 and the Call of Duty games. Call of Duty which has been extremely successful on all platforms has another sequel (number 4) coming out. The difference this time is that CoD4 is going to be modern warfare. Fans of the series have been waiting for years for a good modern warfare game like CoD to come out. The 4th one may just be the charm.

Another potential moneymaker for the company could be Transformers The Game. If the movie is successful, as I think it will be…the game is going to do even better which means more profit for Activision.

So, with these things in mind, the stock down below the 52 week high and a huge growth rate, I see no reason NOT to buy this. Buy Buy Buy.

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