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Technology Stocks : Take Two Interactive Software (TTWO: Nasdaq) taking off! -- Ignore unavailable to you. Want to Upgrade?

To: Samuel J. Bennett who wrote (15)	9/25/1999 4:42:00 PM
From: Gary Stern	Read Replies (2) \| Respond to of 191

Tech Advisory: A Hot Pick for the Hot Video Game Market (TTWO) The maturing video game industry field may no longer offer triple-digit returns for major players. But it also shook out weaker contenders and left survivors stronger and in a more predictable market. New consoles with great leaps in performance are due from Sega, Nintendo and Sony. Since these should also be more affordable than previous offerings, more money will be left in consumers' pockets for game software. To capitalize, special situations advisor Jonathan Steinberg recommends video game publisher and distributor Take Two Interactive (TTWO). The firm sells four of the top 10 games in the popular Electronics Boutiques stores, and it markets through such large retail outlets as Hollywood Entertainment, Best Buy, Toys R Us and Target. Take Two also sells movies and music online (http:www.dvdwave.com) and plans a game distribution website (http://www.jackofallgames.com). "The question is not 'Do I buy Take-Two?' but rather 'How high can Take-Two climb,'" Steinberg says. The firm beat analyst estimates for the seventh straight quarter with what he calls "an amazing Q3;" revenues rose 66% while EPS shot up 140%. Meanwhile, the stock remains a bargain. In the mid-$10 range, shares are still below their 52-week high of $13.50. Steinberg predicts the stock will zoom past $14 in the next few months based on a low P/E multiple of 20x an estimated $0.70 EPS for 1999. FY 2000 should see EPS at $0.90 to $1.00, he says, and the stock could hit $20 in 12-18 months. He recently issued a buy recommendation on Take-Two. For more on Jonathan Steinberg's advice see "This Month's Recommendation," October 1999, Individual Investor's Special Situations Report. Jonathan Steinberg provides one undervalued stock per month poised for substantial growth and profit. This might be an emerging company ready for growth or an established firm on the verge of a turnaround. It is also undiscovered (so far) by the market and investment press. SSR has consistently outpaced all major market indexes by a considerable margin.