The Five Dumbest Things on Wall Street This Week

Man. An ex-CEO accused of accounting fraud but evading the long arm of the judicial system. If that isn't a Symbol of something going on these days, we don't know what is.

5. Take Two on Take-Two

This week, video-game publisher Take-Two Interactive Software (TTWO) lowered guidance for its current fiscal year.

Again.

Back in April, you may recall, the video-game publisher cut guidance for the year ending Oct. 31. The net sales forecast for fiscal 2004 came down 4%, and the diluted net income per share prediction was cut 18%. Take-Two blamed lower-than-anticipated sales of the company's older titles, as well as changes in the company's schedule of new releases.

Based on that and some other bad news -- the CEO's resignation, for starters -- Take-Two's shares dropped 9% when the numbers came out April 14, closing at $31.92.

This week, Take-Two went through the routine again. On Tuesday, the company cut its net sales forecast another 3%, and lopped 19% from its guidance for diluted net income per share. Shares dropped 5% Tuesday to close at $28.37. Again, the company cited lower-than-expected sales of the company's older titles and changes in the company's schedule of new releases.

Better watch out, Take-Two. As any video-game player would know, you only start out with three chances not to screw up. If you mess up one more time on guidance this year, it'll be Game Over.

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