For years, Take-Two Interactive Software has been dismissed by Wall Street as a one-trick pony.
Jim Cramer wonders how many times it will take for the maker of popular games like "Grand Theft Auto" to beat expectations, before people realize they are the real deal?
As the "Mad Money" host always says, the game of Wall Street is about expectations. Take-Two reported earnings on Wednesday night, resulting in a skyrocket performance of over 10 percent on Thursday.
The company provided earnings of a 44-cent loss, when it was expected to lose 59 cents. Now it sits on a cash pile of $804 million, which Cramer thinks is incredible, given that it has a market capitalization of less than $2 billion.
Cramer sat down with Take-Two CEO Strauss Zelnic, who he considers to be the most conservative CEO who will ever appear on "Mad Money" because of his reluctance to provide an evolved forecast for his company.
Zelnic provided clarity on how Take-Two has managed to continue to grow every year when he said, "There are hardcore gamers for whom this is their daily bread, and then there is a big audience for whom interactive entertainment is the most exciting category in audio visual entertainment. Which is why it is the only growth business in the entertainment business today."
For those who still think that video games are only used by teenagers in their basement after school; think twice. Zelnic highlighted that almost half of the software users are women, and the median age is 37 years old.
The company also showed some love to shareholders last year, executing a buyback at a good price.
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"Our story has been an organic growth story, we now have the capital to consider other strategic acquisitions that are creative and we are very focused. Last year we bought back $277 million in stock, so we have shown willingness towards returning capital to the shareholders as well," said Zelnic.
Cramer thinks this stock could have some major upside potential, especially heading into the holiday season. Looks like this one-trick pony could have plenty more tricks up its sleeve.
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