Take-Two Interactive ( TTWO) has been beaten and bullied, but does that mean buy? With the stock hitting a 52-week low this week and sitting at a deep discount to video-game peers such as Electronic Arts ( ERTS) and Activision ( ATVI), some portfolio managers see an opportunity to get the publisher of the industry's most popular title on the cheap. Just in time for a possible holiday-season turnaround, Take-Two is releasing a slew of new games, including a new version of its hot Grand Theft Auto -- dubbed Liberty City Stories -- for Sony's ( SNE) PSP handheld-game system. Liberty City Stories "could be the title for PSPs, and if it is successful, could not only have huge penetration but also stimulate PSP sales," says Joe Spiegel, a fund manager at Dalek Capital, who has been buying shares of Take-Two recently and is now long the stock, short put and long call options on the shares. However, the company's recent sales have been disappointing, raising the possibility that it could miss earnings estimates for its current quarter. That would mark only the latest stumble for a company that's bumbling along. And with some analysts already worrying that retail holiday sales could be disappointing , some investors fear that things could get worse before they get better. Shares of Take-Two bottomed out on Wednesday in intraday trading at $17.64, a new 52-week low; an analyst upgrade subsequently boosted the stock 7% on Thursday. But even after that, Take-Two is still down by one-third from its peak in June. The selloff is no surprise -- the company has been wallowing in bad news since this spring, when word leaked out that its flagship title, Grand Theft Auto: San Andreas, contained hidden sexually explicit content. After an investigation by an industry trade group, Take-Two pulled the title from store shelves and set up a $33 million reserve to cover returns of the game.