Take-Two Interactive (TTWO) Options Limited Going Into FY10 - Barron's

Take-Two Interactive Software (NASDAQ: TTWO) is hoping for a do-over for FY10, a Barron's article reports today. Though famed investor Carl Icahn recently released that he held an 11% stake in the company, which brought the shares up 22%, it seems that that will be as good as it gets for TTWO.

The company has minimal presence in the ever-expanding online gaming sector, and has predominantly relied on one game, Grand Theft Auto, which has been stricken with delays with each iteration. The last version sold six-million copies, generating $500 million in the first week representing 46% of TTWO's total revenue.

A Kaufman Brothers analyst states that "there is not a fundamental thesis here right now. It's all speculation."

The company recently estimated a loss of $0.48 and $0.68 per share. The Street consensus is a loss of $0.49. Consensus is $1.12 billion, compared to revs of $800 million estimated by the company.

Analyst from MKM states that "they haven't demonstrated they've been able to make money in a year without a Grand Theft Auto release." The company hopes to release the next GTA by the end of 2011, improving EPS for FY11 to close to $2 per share.

Take-Two also has a contract with Major League Baseball, but since the market isn't quite there for their Major League Baseball 2k franchise, costing them an estimated $30 - $50 million per year.

Barron's thinks that, with the shares having just completed a good rally, it may be wise to take the profits that are on the table.