June 2023 Take-Two Interactive Software (TTWO) Stock and Old Forester 1920 Prohibition Style Bourbon Review

Jun 2023

Authors: Mark Peters, James Hatfield, Allan Maule

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Website: take2games.com

Twitter: @taketwo

CEO: Strauss Zelnick

Founder: Ryan Brant

Market Cap at Time of Article: $23.53B

Current Analyst Recommendations (26 analysts’ price targets average): $147.12, so at its current price of $139.98 this is a buy.

Revenue: $5.35 billion, and 55.50% growth (year over year)

Insider Ownership: 1.79%. This is lower than ideal for sure. We like companies with much higher percentages of insider ownership.

What makes Take-two (TTWO) worth your hard-earned money for the next decade or more?

If you believe entertainment, specifically gaming, will be a mainstay for decades to come, then you want a piece of the pie in an industry with explosive growth forecasts. Take-two Interactive develops and publishes products principally through Rockstar Games, 2K, Private Division, and Zynga. Their products are designed to be multiplatform to maximize customer reach. This means whether a game is released on a gaming console, computer, tablet or smartphone, TTWO has a market share. The company also has revenue streams in physical retail, digital download, online platforms, and cloud streaming services.

Why talk about Take-Two Interactive to all your friends and family?

Take-Two's combined portfolio includes franchises such as Grand Theft Auto, gtBioShock, Borderlands, NBA 2K, and Red Dead among others. Recently, they purchased Zynga, the makers of Farmville. Whether it's your nephew playing 2K online with his friends, or your Mom digitally planting tomatoes, TTWO has a market for it. Most of us have likely played these games without realizing that TTWO was the parent company behind all of them. Most recently, their standout brands included NBA 2K23 and new content in the Grand Theft Auto franchise (GTA 6 should be released in 2024, and will see multi-platinum sales from preorders alone.). These popular releases helped Take-Two to increase engagement and grow its audience size despite an overall downturn in the gaming industry.

How is this company disruptive?

Take-Two has been disruptive from the beginning. With humble beginnings and a 21-year-old CEO to now having almost 9,000 employees and offices in New York, Europe and Asia, TTWO is has a long track record of disruption. The company has pivoted from its older manufacturing and distribution operations in favor of digital publication and third-party retail distribution. Since 2016, around half of the company's revenues are from digital distribution. TTWO also has a clear grasp on the role that AI will play in the future. Their approach is to use AI to decrease the time it takes to bring games to market, while not losing the artistry of the human element, and we like that. TTWO was one of the first companies to use full motion video with well-known live actors playing the parts. Fun fact: Their first well-known paid actor was Dennis Hopper!

Conclusion

We hope investors see Take-Two as a great way to gain exposure to the gaming industry. The majority of their revenue is coming from recurring spending, making TTWO a software-as-a-service business that can count on a steady stream of predictable income. Gamers spent more with TTWO this quarter even as they pulled back spending elsewhere. That success "demonstrates the incredible quality of our games," management said in a shareholder presentation, "and the significant value that our interactive entertainment experiences provide our players." Investors cannot ignore Take-Two's competitive assets, including its diverse portfolio and the explosion of content it is preparing to release over the next few years. Patient investors should consider buying Take-Two's stock at a discount right now, while expecting some weak results ahead until the industry starts its next inevitable upswing.

Old Forester 1920 Prohibition Style

Proof: 115  Price: $59

When searching for whiskey, there are some who like their whiskey “hot,” meaning it has a high proof. High-proof bourbon tends to have a heavy feel in the mouth, which is welcomed. It’s also something you want to slow down and take small sips. Enjoy the “hot sugar” type flavor that the 1920 Prohibition Style provides. Across the entire Old Forester portfolio of whiskies, 1920 stands out as a favorite for our team. The good news is this whiskey is easier to find and does not disappoint. It’s a higher cost to purchase, so it’s one of those you tuck away for special occasions or when you share with friends. The quality of this whiskey will rank it as one of our favorite whiskeys available.

Nose:

Warm cherry candy, vanilla, oak, and at 115 proof, it will bight your nose hairs a bit.

Taste:

Graham cracker, vanilla, cherry candy, old spice

Finish:

Extremely long finish allowing for smaller sips, longer wait times between sips and an enjoyable evening wind-down drink.

Overall Rating: 4.5/5

A stronger-proof bourbon with a dense taste and showstopping performance. Highly recommended.