Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Ticker Shock: Four Reasons to Not Take-Two

By

Wednesday's top stories and stocks with potential to move.

PrintPRINT
I ate more than 11 lollipops last weekend. I generally don't have a sweet tooth, and I'm not a loon. But I came across a stash of what I assumed was old Halloween candy and decided to let er' rip. Turns out, my oldest daughter couldn't find her bag of candy for her class, and I was forced to cop to my mistake. My wife had to buy more lollipops first thing in the morning and drop them off at the school, and now I'm in the doghouse.

Asian stocks rose overnight. The Hang Seng was up 5.26% and the Nikkei was up 1.37%. Meanwhile, European stocks were in the green earlier this morning as well. And here in the US, we're currently trading higher.

Here's what I'm focused on this hump day.

Take-Two Interactive Software (TTWO):
The game publisher was out with its second-quarter numbers.

Excluding items, it lost $0.04 a share. That may not sound so hot, but it was markedly better than the $0.13-a-share loss the Street had been expecting. Meanwhile, revenue came in north of expectations, too.

It would be great if the story ended there, but it doesn't.

Per Reuters:

"The company reaffirmed its forecast for the fiscal year ending October 31 for a profit, excluding items, of nil to $0.20 a share, but lowered its revenue forecast to a range of $1.05 billion to $1.15 billion. It had previously pegged revenue at between $1.1 billion and $1.25 billion."

That's a bit of a downer. In addition, the revenue estimate I'm seeing is for $1.17 billion.

My thoughts:

1. That ratchet down on the revenue could be viewed as a negative by analysts.

2. In 2010, the company is expected to earn $0.94. If it does, that wouldn't be too shabby, but I'm not convinced it will hit that number. Presently, it's expected to earn just $0.12 a share this year, which is doable.

3. Insiders - with the stock in the single-digits, I'd sure like to see some open-market purchases.

4. What's the big catalyst to get involved now?

My gut tells me to punt and see how this plays out (pun intended).
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE