TTWO’s Brutal slaying of ERTS offer

Loving it! $500M first week, called a brutal and satirical masterpiece equal to films like “The Godfather,” beat Halo 3’s $400M record.

This company was a slam dunk earlier this year as I posted about on Rule Breaker boards and went long in CAPS at $13.67.

I wouldn’t buy now, but am holding as the EA offer was an opportunistic low ball. TTWO is worth 20% more right now.
2008 eps consensus $1.50, with analysts raising targets recently.
The ERTS offer has pinned TTWO to around $26 since late Feb, the current sales the share price would have made it at least this high without the ERTS bid, if anything the price is now constrained by the bid.

If you don’t own TTWO then stay alert in case ERTS pull out of the deal and there are suddenly more sellers. TTWO in the low twenties would be good. Unless there is also a large material change in TTWO’s business I’d buy more there. For now I hold and in these markets will be happy getting the 20%. Preferably I’ll still own TTWO next Jan so long term CGT kicks in.

Dean

Tomorrow I’ll be asking Why Isn’t Buffett on the Microsoft board? Though it is exciting to see Reed there. (my eldest is another Reed)

And hopefully I’ll figure out how to link my CAPS profile to this blog.