Investing in Gaming Stocks: Stockholder Revolt
By Ian Cooper
Take-Two Interactive (TTWO) could soon break hard to the upside. That is, if the March 23, 2007 convening of Take-Two shareholders marks a new beginning for the embattled company.
As I said last week, several Take-Two investors, including Oppenheimer Funds and SAC Capital Management (which control a 46% stake), are gearing up to vote for a new slate of director candidates at the upcoming annual TTWO meeting. The investor group will also seek to show the CEO the door and to review the current CFO.
None of this is at all surprising. After years of scandalous backdated options and over-inflated revenues to hidden sexual imagery in Grand Theft Auto: San Andreas, shareholders have had enough.
What the planned changes might be is still up in the air. We could see for sale signs. We could even see the sell off of poor performing units to focus more on the gaming company’s stronger units. We honestly don’t know. But I’m willing to bet that any changes will be a positive going forward. The big near-term catalyst could be a short covering spree of 30 million shares. But again, we don’t know.
You may want to consider buying Take-Two (TTWO) shares ahead of the March 23, 2007 meeting.
Take care,
Ian L. Cooper, Editor, Early Alert Trader