While I'm not usually a fan of Wedbush Morgan's, Michael Pachter, I do think he has this one right.

In a research note published today, Mr. Pachter reitereated his "Strong Buy" rating on Activision's stock and raised the fourth quarter earnings forecast from $205 million to $250 million, citing strong first quarter sales data NPD Group, which has the company's earnings up 39% year on year.

The big reason for this, of course, is mega-hit Guitar Hero II, which is set to debut on the Xbox 360 in April for $90 (Guitar included). Secondarily, Pachter notes this week's launch of the PS3 in Europe as another reason to be bullish.

As always, though, Pachter leaves out some important infomation. Yes, Activision has its three bread and butters: Call of Duty, Tony Hawk, and now Guitar Hero. That lineup alone makes them a strong company.

However, this summer, they will be releasing games for three of the biggest movies, Spider-Man 3, Shrek 3, and Transformers.

Even if these movie-based games aren't amazing, they'll sell well.

Booya!, Activision. Booya!