take two
from NY times.
so take-two interactive software has taken a huge hit in sales lately. even with grand theft auto. a 63% decline in sales since november. some speculate that this parallels the release of GTA: san andreas, and others speculate that this is falloff due to the negative media from the scandal this summer.
regardless, shares for the 2005 fiscal year are expected to come in around 53 to 56 cents per share. they had predicted as much as 90 cents per share. the stock is down 35% since june. and yet investors keep on investing in them. OppenheimerFunds owns 26% of take-two. Fidelity owns ~15%. that's 18.4 and 10.3 million shares, respectively. those are big stakes to put in a company that isn't doing nearly as well as it had been expected/hoped to do. from the looks of it, everyone is just betting on the success of GTA: san andreas -- 37.3% of take-two's profits -- but that's just one game.
why are these funds so supportive? shouldn't these funds be worried about soundly investing the money of their investees instead of gambling on a company that is relying (i think) a little to strongly on one game. is this company worthy of this much trust (i.e. money)?
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