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Author:

Perry Rod

Subject:

Earnings

Date:

08/12/15 at 6:13 AM CDT

 

 

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RPLY: 1

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Sentiment:

Neutral

TTWO's earnings report

Nobody mentioned Take Two's earnings report? I have a long term position.

I was surprised at how weak the beat was, since they usually blow out their guidance. It signals to me that Zelnick is no longer lowballing and analysts are overestimating their numbers for the year. But it is pretty impressive that it looks like they'll be profitable for at least five quarters in a row now.

What's not impressive is comparing Take Two's performance to Activision and Electronic Arts since the buyout offer in 2008. EA is up about 50% and ATVI is up about 100% while TTWO is up about 20%. Things are more comparable post buyout offer, but it goes to show you how wrong analysts were about Zelnick wanting to sell the company. He's in there to milk it for everything he can get. From his perspective and his and Slatoff's 10 million plus a year take from the company, why would he ever sell?

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