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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