Play the stock market! Buy Ubisoft, worry Take-Two

On to the serious side of gaming (no, not serious gaming). Wedbush Morgan Securities’ Michael Pachter has given his advice to investors, and as Gamasutra reveals, it virtually amounts to Ubisoft hot, Take-Two Interactive not.

We already covered a bit of the Take-Two story earlier, but as a bit of a refresher, while the company earned more in November ’06-January ’07 than the same period last fiscal year, it isn’t exactly enough to turn a profit, with Take-Two reporting US$ 21.5 million in losses. And over the past year, Pachter observed, T2 had bled operating losses of US$ 100 million – blood spent to keep the company running. He predicts T2 share prices will drop as he believes, given the above, that they are overvalued.

To repeat what he said earlier: in his eyes, it doesn’t matter how hot Grand Theft Auto is (and he admits it’s hot); if the rest of Take-Two drips, it’s just going to be a case of money in (via GTA), money out (via the rest of the company).

Ubisoft is on the other end of the scale, the big winner in Pachter’s eyes. Improving sales and an aggressive next-gen strategy contribute to the company raking in the money, and Michael is putting down chips on Ubisoft increasing both market share and money earned. No wonder they up and created their own animation studio – they could easily afford to. As it is in Las Vegas, investors love to bet on a winner.

In other news: Wall Street terrorized by crazed bunnies.

On to the serious side of gaming (no, not serious gaming). Wedbush Morgan Securities’ Michael Pachter has given his advice to investors, and as Gamasutra reveals, it virtually amounts to Ubisoft hot, Take-Two Interactive not.

We already covered a bit of the Take-Two story earlier, but as a bit of a refresher, while the company earned more in November ’06-January ’07 than the same period last fiscal year, it isn’t exactly enough to turn a profit, with Take-Two reporting US$ 21.5 million in losses. And over the past year, Pachter observed, T2 had bled operating losses of US$ 100 million – blood spent to keep the company running. He predicts T2 share prices will drop as he believes, given the above, that they are overvalued.

To repeat what he said earlier: in his eyes, it doesn’t matter how hot Grand Theft Auto is (and he admits it’s hot); if the rest of Take-Two drips, it’s just going to be a case of money in (via GTA), money out (via the rest of the company).

Ubisoft is on the other end of the scale, the big winner in Pachter’s eyes. Improving sales and an aggressive next-gen strategy contribute to the company raking in the money, and Michael is putting down chips on Ubisoft increasing both market share and money earned. No wonder they up and created their own animation studio – they could easily afford to. As it is in Las Vegas, investors love to bet on a winner.

In other news: Wall Street terrorized by crazed bunnies.