Friday, May 25, 2012

Investopedia: Take-Two More Like A Big Game Call Option Than A Real Company

There's no such thing as a perfect way to value any company, but cash flow analysis has long suggested that Take-Two Interactive (Nasdaq:TTWO) isn't worth an investor's long-term attention. The stock's performance over the past five years has backed that up, though it's worth noting that Electronic Arts (NYSE:EA) has fared no better (meaningfully worse, actually) and there have been repeated trading opportunities.
With a continued pattern of poor earnings outside of blockbuster launches and delays in bringing major titles to market, it looks like little is going to change. Take-Two can be an interesting trading vehicle to play big-name title launches, but it doesn't look like management has the ability to make this company a consistent generator of free cash flow.

Please follow this link:
http://stocks.investopedia.com/stock-analysis/2012/Take-Two-More-Like-A-Big-Game-Call-Option-Than-A-Real-Company-TTWO-EA-ATVI-ZNGA0525.aspx

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