With Nintendo (NTDOY), the boys and ‘man boys’ markets are a LOCK. If you buy the stock today you need another catalyst…I mean the cats out of the bag no? They don’t do their own retail like Apple, you can’t play the games on an iPhone and you don’t play them on Macs. That said, I think they have a giant catalyst in girls, women and the family unit. If you are skeptical and refuse to buy a Wii, go to a friends house with your family and play Mario Kart.

If you don’t already own Nintendo (NTDOY) , you can’t blame me. I have been bullish and long since the 30′s, we Wallstripped it and now a year has past. Here’s a good post of mine from last May and not much has changed in the story except the price of the stock. In gigantic stocks, waiting for 10-15 percent pullbacks can be expensive. I was not early when I got in, but I never am. Obviously the question today after it has doubled yet again…is now too late?

I could bore you with metrics but that could not help me justify anything…thank goodness though because I would be broke if I only owned cheap, low P/E stocks. I bought some more this week for me and the kids despite it being off it’s all-time high and despite the fact that I have actually sold some at lower levels for my fund.

The chart and stock trajectory is breathtaking and a spitting image of Apple . I think both companies have a lot in common in what lies ahead (girls, women and families – Apple having the big edge with their fantastic retail), but this post is not about Apple.

Girls will play the Wii. Color me not totally convinced on Wii fit, but it can’t hurt and will continue to evolve and expand.

Our biggest KnightsBridge investment to date, and our first, was last year GreenScreen Games . One of their studios – SuperVillain (Tony Hawk) – has the major game launching and it’s for a market that is not their bread and butter – anyone but a boy.

Check out the next big type of gaming hit (click on image to enlarge):

The ‘girls, women and family unit’ is not factored into today’s prices because ANALysts have nothing to really compare it too. That’s good..

Gamestop (GME), despite my hate, has an almost monopoly and everybody is and will gun for that market – EXPANDING THE PIE. Best Buy (BBY), also despite my hate, can’t sell laptops, PC’s, washing machines, flat screens or music for profit anymore. But gaming…

PlayNTrade is one of the fastest growing franchises and I love this local Phoenix franchise idea of Gamestop on wheels called ‘The Game Truck ‘.

I am of the feeling that Nintendo could go wild still. I mean it gets Nasdaq ‘Pink Sheet’ love only and although the brand is everywhere, NOBODY owns the stock.

Do you? Better yet…does your cab driver?

PS – I still stand by my statement back in my March 2007 post…’If marijuana is legalized, all the gaming stocks double again overnight!’

PSS – I did a whole bullish trend scenario for gaming and did not mention ‘Guitar Hero’ or ‘Rock band’ even ONCE (until now :) ).

PSSS – When I think of ‘Breathtaking’, I think of Seinfeld (also the ‘Shrinkage’ episode):

PSSSS- Going offblog until Wednesday as the Lindzon’s hit the road for the summer. Don’t do anything crazy.

Disclosure – Long Nintendo, Electronic Arts and GreenScreen Games.

I have not been shy about gaming and gaming stocks. Long-term this trend is and has been money. We have covered Sony , Electronic Arts , Nintendo , Gamestop and Microsoft (it can’t be Vista) on Wallstrip.

My favorite in the space has been Nintendo. I was buying and recommending it way back in March when it had already risen 300 percent rather quickly. It has still more than doubled since than. The phenomenon will only grow.

But it’s Activision that will be in the spotlight for the next week, at least in the press. Vivendi is buying, investing and merging with Activision (ATVI) (no kissing though). Here is New York Times coverage and some big gaming blogs . I have to be honest that I did not know Vivendi was even in the game business until hearing that it owned World of Warcraft.

I have owned this stock before but have mainly stuck with Electronic Arts, Sony and Nintendo as my proxy for the game market (the stock should rocket higher tomorrow so I am bummed of course). With respect to Sony and have taken much ridicule for that at a recent dinner in San Francisco (but it is on fire lately too).

Building games is a gigantic market but is becoming more like the movie business and that’s why this move by Vivendi is underway. Activision is ruling the game world these days with Guitar Hero and today’s Wallstrip pretty much sums up why.

The game has become a lifestyle for adults across the nation. Check out the GuitarHero website . Here is the Wikipedia page .

Easier than the real guitar and a good reason to get smashed and live out your rock star fantasy. Guitar hero is UNSTOPPABLE as will all of it’s offspring.

Brian takes a look at the activision pricing picture to wrap it up:

In the end, don’t think too hard. This trend is something that all investment portfolios should have exposure too. Take your pick.

Disclosure – Long Nintendo, Electronic Arts and Sony

Electronic Arts which I blogged about buying down 20 plus percent months back is ripping higher as well. I will lighten up a little here after the great run. Hre once again is the awesome Frank Caliendo, who is getting his own show on TBS, doing John Madden (a serious tangent, but related to ERTS through Madden’s Football). Enjoy:

Disclosure – Long XRAY and ERTS

Here is a good inside look at what’s happening in the game industry from my friend Darren Herman .

Roger goes deep as well .

Me…I am just following price (except perennial dog Sony :) ).

Disclosure – Long ERTS, NTDOY and SNE

The iTunes/Starbucks deal was genius. The nerds and bloggers are whining about the expensive giveaway, but they would not know marketing or long-term thinking if it walked up and poked them in the eyes. They can’t get out of their pajamas to go to a normal job.

As is my style, I have used the 30 plus percent drop from all-time highs to buy some stock. It has continued to drift downward. I bought some more in the $26′s. As Fly says…WINTER IS COMING. It’s not cheap, but I never care about P/E anymore or valuations.

As I write here often, my all-time high buying is focused on the fastest of the fastest. With the older, big, baddest, beastiest of the brands, I prefer to buy 20-30 percent drops. International Game Technologies, Electronic Arts and Starbucks are the ones that have fit the bill this year for me. I have been amply rewarded in ERTS and IGT…Starbucks time may be upon us.

The New york Times interviewed Howard (the coffee one) this weekend for his take on the growth potential. My thoughts…it is a big world out there and Starbucks will be rewarded for their continued expansion. This brand is worth owning for the long-term down 30 percent plus from all-time highs.

Disclosure – Long ERTS, IGT and SBUX

AUXL - very strong break to all-time high

USU – Nuclear power play and has pulled back strongly to older support.

Electronic Arts is moving and their game of Wii catch up seems to be on track

Dolby – Boring and an old holding that has been a big winner , looks poised for more upside. Their royalty/license revenue is just thriving

Cynosure – laser surgery is big and as james Altucher likes to say, Tattoo removal is going to be big.

Here’s AUXL on Wallstrip before the big move up:

Disclosure – Long ERTS, DLB

‘Guitar Hero’ does nothing for me. It seems I am in the minority. The PSP is cool and my son is addicted, but my daughter Rachel could give a hoot.

I know the Wii seems like old news, but it is not. Investors are clamoring for the stock , despite it being a pink sheet inhabitant.

I have passed on the Wii hype for now because I figured we had a Playstation 2 or 3 and my son rarely plays.

BUT ,

I saw the Electronic Arts commercial for Tiger Woods Wii Golf game and the WHOLE family went WOO for the Wii at the same time. This is a can’t miss homerun. This is great for golf, families, gaming, Wii, and Electronic Arts. That’s just off the top of my head.

I just saw Andy’s post on Wii and I am reminded of the two extra addiction and adoption factors – ease of use and big screen TV’s.

The obvious long-term benefactors remain the same: Electronic Arts (ERTS), Nintendo (NTDOY.PK), Activision (ATVI), Gamestop (GME), Best Buy (BBY) and even Sony (SNE).

Sony is a play because they will adopt and Nintendo will make mistakes. Their ‘faux’ shortage games have already started . Sony’s distribution power is not to be underestimated.

Today, Gamestop (GME) exploded to another all-time high and Activision looks poised. Electronic Arts was up big as well. Sony has been on a tear of late despite the Wii kicking it’s ass.

I am glad to have caught Electronic Arts down 20 percent. Keep your eye on this sector for inevitable selloffs as their will continue to be massive gains in the years ahead.

On Wallstrip , we have covered Sony and Electronic Arts . Looks like we will be doing more on this sector in the months and years ahead.

Any other obvious winners worthy of Wallstrip ?

BTW – If we legalize marijuana, these stocks double overnight :) .

Disclosure – Long ERTS and buying a few shares of Nintendo tomorrow and hoping it has an immediate hiccup. I have never inhaled.

As Wallstrip profiled Electronic Arts , he nailed the ‘Stay Away’ call. He has followed it up with more gems on the Electronic Arts outlook from the deep web .

Today, he has a research post from public web information on Sirius (SIRI).

If you are long or short Sirius, head over.

I have never owned Electronic Arts. No good reason. Big Woops (mistake) on my part.

Like any great growth stock, the ride has not been perfectly smooth, BUT – what a ride.

Our show today at Wallstrip focuses on the gamers and “Madden” football. An amazing brand within a brand for sure.

I have avoided gaming stocks mainly because they seem like Hollywood entertainment companies and am always worried about seasonal sales and a big bad gaming miss. I think things are a little different now that the industry is as stable as ever, you have global gamers and you have a GIANT resale and exchange market at the game retailers like Gamestop.

I may just buy a few shares if Electronic Arts pushes past $60 to an all-time high. NOTE – Activision is trading very close to all-time highs as well. Hmmmm.

Speaking of Madden, I was watching Letterman the other night and was crying at Frank Caliendo doing impersonations. Thanks YouTube for making the search simple. The perfect Madden impersonation:

PS – The first kid in the McDonald’s commercial after today’s Electronic Arts show looks exactly like a Young Tiger Woods. Freaky!