Archive for December 2013
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:
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:
Disclosure: I own shares and call options in TTWO.