Take-Two Stock Rebounds

GamePolitics has run a number of stories over the past 15 months tracking the steady decline of Take-Two’s stock price in the wake of the Hot Coffee. TTWO had a pre-scandal near 28, but has been as low as 9 in recent times.

Business site MarketWatch, however, reports that TTWO is rebounding, despite new concerns about ongoing investigations by the SEC and the Manhattan District Attorney’s office. There are also a number of shareholder suits pending as well as the controversy surrounding the October 17th release of Bully.

With the stock price now in the mid-teens, MarketWatch cites the strength of the Grand Theft Auto franchise as a factor in TTWO’s rally.

"We view it as a company that has had some problems. But, (Take-Two) has been disproportionately punished," said Emmanuel Ferreira of the Oppenheimer Quest Opportunity Value Fund. Ferreira told MarketWatch Take-Two has no debt, possesses a talented development team and has high liquidity.
 

"I think the worse they do, the more people believe it will be bought out," said Michael Pachter, an analyst who tracks the video sector for Wedbush-Morgan. "They can make a couple of dollars a share every time they bring out a new version of Grand Theft Auto. That will put a floor on the stock."

 

 

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