More Attractive With Age
But with
Grand Theft Auto IV inching closer to the finish line, the stock could go higher, says a portfolio manager who did not want to be named.
"The concern that
Grand Theft Auto IV is delayed is just short term," says the portfolio manager, who does not currently hold shares of Take-Two. "The game will release to an even larger installed base of consoles next year, which means cash flows only got pushed out from this year to the next."
Analysts upgrades are slowly flowing in, too. Take-Two was upgraded Wednesday to a buy from hold by an analyst at Kaufman Bros. on hopes that it will make an attractive buyout target as consolidation hits the games sector.
Meanwhile, it's clear the market is betting Take-Two's future is as uncertain as its finances. That's evident in the level of short interest as a percentage of all shares outstanding, which stands at a whopping 31.6% for Take-Two.
By contrast, the level of short interest is 3% for
Activision(ATVI Quote - Cramer on ATVI - Stock Picks), 3.7% for
Electronic Arts(ERTS Quote - Cramer on ERTS - Stock Picks), 15.7% for smaller rival
THQ(THQI Quote - Cramer on THQI - Stock Picks) and 22.7% for
Midway(MWY Quote - Cramer on MWY - Stock Picks).
Priya Ganapati
RSS
