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Take 2's shares have seriously fallen


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LanceLongstiff

Shares in Take 2 Interactive have fallen sharply in the last week, following the release of the abortion known as Grand Theft Auto IV (for Windows), to a price not seen since GTA went 3D.

 

Considering that the game was most likely intended to be the first of a trilogy based on the same engine, it seems that R* have really shot themselves in the foot.

 

 

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LanceLongstiff

The failed takeover would explain the price dropping to what it was before the takeover bid, and maybe a little lower. It wouldn't justify a drop to the pre-GTA3 price. A drop that sharp suggests a loss in faith of the franchise itself.

 

Considering how they were planning to sell two sequels off the back of this (VC and SA), this could end up costing them a billion. That's what's reflected in the sale price.

The failed takeover would explain the price dropping to what it was before the takeover bid, and maybe a little lower. It wouldn't justify a drop to the pre-GTA3 price. A drop that sharp suggests a loss in faith of the franchise itself.

 

Considering how they were planning to sell two sequels off the back of this (VC and SA), this could end up costing them a billion. That's what's reflected in the sale price.

Fall of the american economy maybe?

LanceLongstiff

I wondered how long it would be before somebody came up with that. Fact is, sales of items like video games and dvds go UP during a recession. It would have little if any negative affect on Take 2's shares. Basic economics.

This is where Take Two's stock always sits when they have no large announcements on the horizon.

 

Typically it will sit here until an announcement, after the announcement they get to about 13 points and sit untill

about 6 months before release of said item. I know this because I usually buy in about now. sit on it till announcement

wait 3 months and sell out. I have been doing this for years now.

 

 

go here and scroll your mouse wheel back a couple years. all the way to 2001

The failed takeover would explain the price dropping to what it was before the takeover bid, and maybe a little lower. It wouldn't justify a drop to the pre-GTA3 price. A drop that sharp suggests a loss in faith of the franchise itself.

 

Considering how they were planning to sell two sequels off the back of this (VC and SA), this could end up costing them a billion. That's what's reflected in the sale price.

Fall of the american economy maybe?

It's the fail of decent coding WAYY more than it is the fail of the American economy.

Hmm I just raid an article in a dutch magazine saying that game companies dont endure heavy losses or any losses at all during a recession like this one.

They are the group that keep on buying no matter what happens in the economy because if they have a job and money they will keep on buying games and not notice a recession

 

 

Is this true guys??

Hmm I just raid an article in a dutch magazine saying that game companies dont endure heavy losses or any losses at all during a recession like this one.

They are the group that keep on buying no matter what happens in the economy because if they have a job and money they will keep on buying games and not notice a recession

 

 

Is this true guys??

I kinda feel that way.

 

Recession,????

Hah, gas prices and every other price is so fricken low right now

I can buy so much stuff. Recession is bs and only for those invested

in specific items. Not so much for the common folk.

LanceLongstiff

I've checked the charts and the last time T2 was anywhere near this low was just before anyone ever heard of GTA3. They then had pretty consistent growth throughout 2002-2006, which coincided with the releases of VC, SA and the PSP games. Although there have been noticeable drops in share price a few months after a major release, it has never dropped below the previous 'phases' low, so even the drops have shown consistent growth over one another, until this one. Also bare in mind that T2 have not faced criticism like this, or a threat to its No. 1 franchise. It's a safe enough investment, but I don't think it'll be the performer it was.

LanceLongstiff
I wondered how long it would be before somebody came up with that. Fact is, sales of items like video games and dvds go UP during a recession. It would have little if any negative affect on Take 2's shares. Basic economics.

Did you miss this Allonzo?

 

Recession is bs and only for those invested

in specific items. Not so much for the common folk.

Orly?

 

Tell that to the 1,000 or so workers being laid off by EA in March 2009.

 

Tell that to the 1.5 million plus jobs lost in the US in the last year.

 

Tell that to the millions of homeowners facing foreclosure.

 

Tell that to the Big 3 automaker workers who are very nervous these days.

 

Tell that to me and my coworkers, whose hours are being slashed because of a lack of spending.

 

Or maybe we're all just not common enough to feel the effects of a recession. What do I know? sarcasm.gif

 

EDIT: And before you go "oh, I was just talking about stocks" then think about those who have invested in 401ks, and watched their retirements drain to almost nothing. Glad things are going well for you, but not everyone is so lucky...

Edited by ceedj
LanceLongstiff

 

The slider is a bit complicated.

 

as you move it around really fast you skim an average.

 

as you adjust the date , you see a better detail of a region.

user posted image

That example shows when the sales of GTA3, VC and SA had virtually run out. They were riding a wave from 2002-2006 that dipped occassionally, but never dropped to pre-GTA3 levels. They definately didn't see their stock fall following the release of GTA3, to below the GTA3 price. I'm not saying the price won't recover somewhat, but they're a very long way off their 3-year average of around $18, with nothing but but an expansion pack to get them there. They're definately a much worse bet than before GTA4 (PC).

 

And try this chart, you might find the slider less complicated.

Sorry guys, but share prices if ever rarely have much to do with what a company did - it's what is about to happen that is interesting.

 

Take Two has a very bleak outlook for the current quarter (see http://www.marketwatch.com/news/story/take...D-499156C3CF2B} ), and that is the reason share prices plunged.

 

An interesting part here (especially for those that think GTA4 is to blame):

 

Take-Two had also reported a new deal with the key development team at its Rockstar Games unit, which created the blockbuster "Grand Theft Auto" franchise. The deal will keep the Rockstar team at the company for the next three years. Financial terms of the deals were not disclosed, though Take-Two said the agreements include profit-sharing terms as well as an agreement to fund the future development of other Rockstar titles that will be published by Take-Two.

Most analysts cheered the deal. Doug Creutz of Cowen & Co. told clients in a report that the "shift to a profit-sharing arrangement from the old revenue royalty arrangement could benefit both Rockstar and Take-Two."

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