Berk Sure Has A Way

Putting my mouth where my money is.

Archive for December 2013

Take-Two’s Q4 should be a Monster $800 MilIion in Revenue

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A couple of weeks ago, I outlined why I thought Take-Two (TTWO) is very a different company than a few years ago with significantly brighter prospects. The console video games business is all about cycles–product cycles, console cycles, consumer shopping cycles. Right now we are in the lollapalooza of video game cycles for TTWO – a new version of biggest hit coupled with next gen consoles during the critical Christmas shopping season. So how is it going so far for Take-Two?

By my estimates, spectacularly.  In its earnings release in late October, revenue was projected to be $650 million – $700 million by TTWO, which has been low-balling estimates recently. Analysts are coming in at an average slightly above $700 mil (range: $668-$766 mil). I estimate revenue will be about $800 million and earnings will meaningful beat the current $1.06 per share projected by analysts.

You can read the full post at Seeking Alpha:

TTWO’s Q4 will be another Monster

 

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Written by Kevin Berk

December 24, 2013 at 3:06 PM

Posted in Uncategorized

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Consider these 5 “Loser” Stocks During Tax Loss Selling Season

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Consider these 5 “Loser” Stocks During Tax Loss Selling Season

Every year investors review their portfolios and projected taxes and many prudently decide to minimize their taxes by selling some of their losers.  In a year where the S&P’s total return is close to 30%, big losers are harder to find.  Rationally or not, stocks that lost value during the year often lose more value (or fail to rise with the market) as they are more aggressively sold off to stave off the tax man. One might argue that in such a big up year, these losers might take it even harder on the chin.

Obviously, you should not buy companies at the end of the year just because they’ve gone down. You can create a good candidate list by performing a screen for large decliners and then searching for higher quality names to research further. I’ve collected a list of potential 2014 winners from 2013’s losers. I believe these five stocks have a reasonable risk/reward profile going into 2014. While solid investments in their own right, they should receive an extra boost as the tax loss sellers are no longer pressuring the stocks

You can read the full article at Seeking Alpha:

Tax Loss Selling Potential Winners

Written by Kevin Berk

December 23, 2013 at 11:46 AM

Posted in Picks and Pans

Take-Two is a Buy – Could Double in next 12 Months

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Last Thursday, Seeking Alpha published my bullish post on a recent stock position – Take-Two Interactive.

Summary:  Take-Two (TTWO) is a changed company with growing operating leverage and a secular tailwind from new console launches. Grand Theft Auto V is one of the biggest franchises in all of entertainment. Take-Two continues to innovate, win awards and launch new franchises. The company is flush with cash and cash flow and is aggressively buying back stock. The stock is inexpensive and could easily double in 6-12 months as the market digests the shift in business prospects and profitability.

You can read the full post on Seeking Alpha:

Take-Two: Margins will Drive Upside

Disclosure: I own shares and call options in TTWO.

Written by Kevin Berk

December 16, 2013 at 10:56 AM

Posted in Picks and Pans, Uncategorized

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