Stock to Sell #5 – Take-Two Interactive Software (TTWO)
Take-Two Interactive Software (NASDAQ:TTWO) develops and sells interactive entertainment for Sony (NYSE:SNE), Nintendo and Microsoft (NASDAQ:MSFT). Video game sales have been generally disappointing, and so TTWO’s revenues have fallen from $1.1 billion in 2011 to $825 million in 2012. One of its major games, Grand Theft Auto V, will be delayed until September, adding further to a disappointing revenue stream.
Technically, TTWO is still in a bull channel, but double CBR sell signals and high-volume selling spikes, along with a sell signal from its stochastic, are all very unfavorable signals. Holders should enter a stop-loss at $11, which is slightly below its 200-day moving average now at $11.16. A break there could result in a plunge to $9 or lower.