Breakout

Sony sinking, Take-Two blasted, Sears tells Canada to take off

Breakout

Making the list today as measured by your Yahoo Finance ticker searches are:

Take-Two (TTWO) shares are getting smacked around by more than 5% after the company reported huge earnings but said revenue in the current quarter could come in well short of estimates. Take-Two has a lot of solid franchises including NBA2k and WWE titles but it's bread and butter is Grand Theft Auto. Last year GTA5 booked $1 billion in sales in only 3 days. That's a tough act to follow and Take Two shareholders seems to have gotten spoiled. One other interesting note from the call is that digital downloads accounted for about half of revenues for the quarter; that's a chilling stat for stores carrying old-fashioned discs.

Sears (SHLD): the department store chain headed by the Eddie Lampert popping today on reports the company is considering an asset sale of Sears Canada. It's an interesting idea as it comes in the wake of Target's having established Canada as the Vietnam of American retail expansion opportunities. Sears Holdings is a company with a market cap of $4.5 billion and -$5.4 billion in net income over the last 3 years. Sears isn't a retail turnaround story. It's a failing business being masterful scrapped by a brilliant investor. What that means for the shares is something only Mr. Lampert knows and he's not inclined to share.

Sony (SNE): the Japanese behemoth sliding after surprising the street by forecasting an annual loss, its sixth in seven years. The net loss will probably be around $490 million in the 12 months ending March 31. It's a devastating blow to CEO Kaz Hirai’s chances to revive the company. Hirai, who cut last year’s net-income forecast three times, is trying to overcome slumping demand for the TVs and personal computers that powered Sony in years past. The company is also cutting 5,000 more jobs and selling other assets. Perhaps the company needed Dan Loeb to stick around.

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