Why am I going to have a rude awakening? This is a TTWO board. For your sake, I wish the mobile game bubble keeps inflating. Just as long as TTWO doesn't buy into it.
A total waste of money. They can start a new studio with a few guys and probably generate as much revenue starting from scratch with a minimal investment instead of paying a ridiculous $500 million price tag for a company that barely makes a profit.
Z doesn't need to buy anything at those kind of premiums. These are poo poo/pee pee games and can be made in a dorm room with a loaded bong and a case of Ramen. Open up a small office and hire a small team of guys to develop; and keep the Housers 1000 miles from its location or these games will cost $50mil each and take 3 years to develop. And name it something different so it doesn't cheapen any of the other TTWO studios. This is about getting a nice valuation and if making chewing gum in addition to foie gras and sweetbreads gets the stock trading at a 25-30 PE, then hook me up with some double bubble!!
Why TTWO hasn't entered the mobile gaming space with both feet is shocking. It requires minimal cash, at least compared to a AAA console games, to create original mobile/tablet-only games. The valuation they would get with a major mobile hit would probably get the stock over 50 and they would actually have a healthy console gaming division to fall back on.
There really aren't many other places to put money. The move down today was warranted but, as always, a little overdone. People were saying the same thing last year (no news to move the stock in the off season) but the stock moved 50%+ from Mar 1 to May 1. Funds need to invest huge sums of money and this huge drop, based partially on a overreaction, will attract some buyers knowing that this could very well be another low ball estimate. Even with their "disappointing" 8-10% revenue increase estimate for FY14, the stock price should still command a 20 PE.
I think the most important news re: Deckers is that the UGGS brand is not dead.
My only concerns is the potential dilution and overall confusion in calculating the actual share count. TTWO did quite well with the 1% rate but what did they exactly do with the money? It wasn't as if they used it to buy back shares.
Z doesn't know how to play the game; he's either inept or egocentric. I would say that its inevitable that GTAV will be released on PC. If its not planned for release, its his job and not the Housers, to make sure that it is. The demand is there. You must understand that pleasing the analysts is of major importance in this industry. Z mentioning a PC release would have satisfied the analysts and there is no justifiable reason to keep that release info a secret. Its not as if people will stop buying it for the PS3 because it's coming to PC. In addition, Laine sometime comes across in the CC as either completely incompetent or just pure Zelnick-Media egocentric. "We'll tell you when we feel like telling you.... or not".
An activist investor is going to come in and shake things up. Guaranteed. Why else would the stock be up. Someone is buying.
You've probably been in this stock for a week and know nothing about this management team. Anyone that's been in this stock longer than one quarter knows that he's completely inept at being a CEO. He works for the shareholders but only seems to care about the Housers (I partially understand) and Zelnick Media. Its appalling that Laine received 7 million in total compensation last year for a company that is down 30% since the beginning of her tenure. That kind of compensation is insane for a company with only a 1.5b market cap and with a stock price lower than it was 10 years ago when the CFO at the time was earning a tenth of that. If he was looking out in the interest of the shareholders he would pay off the convertibles, and base compensation for his employees/studios based on stock price and not unit sales. Yes, he's a moron.
Never say never. One activist run fund could change that in a week. You should chill out about calling longs idiots, half of my holdings (that I haven't recently sold) are still up over 100%. How's your Blackberry short at $6.50 doing?
You're right on. Problem is, this mgmt will never respect us shareholders. Zelnick talked the talk to get the job but ever since he's been raping us. In my opinion, he's a moron who can't take a dump without asking the Houser's first. It's his job to control/dictate what gets released and when. Rule #1 in the entertainment business to never let the talent make business decisions. Why do you think athletes, musicians, and actors have agents, handlers, and multiple managers? Its because the majority of creative people are absolutely terrible with business decisions. In addition, Zelnick probably compensates them in cash and not stock options so they can care less about the stock price. That's probably the biggest no-no. There's zero incentive to get things released in a timely manner.
To Zelnick, we're just goyim.
He thinks and acts like he owns the company. They collectively own much less than 20%. My guess would be that Zelnick Media owns about 3% of the company's shares.
That might not be very sharp. All they have to say is that GTAV is coming out on PC and the new consoles next fiscal year and, once again, all will be forgotten. Investors will even forget about their limp#$%$ management team. In addition, management is showing some major ineptitude, which will not be overlooked by activist investors this time around. A change in management will bump this stock up 20%.
Neither. They just stroll right in, take all the property, laugh... and stroll right out. If the cops question them they just say "we can't answer that at this time".