Jim Cramer Says “Take-Two Has Real Scarcity Value Now”

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the stocks Jim Cramer put under the spotlight. Cramer noted that after EA going private, it is the only significant pure-play American video game company that is publicly traded. He stated:

“Honestly… far more important than the latest earnings report is the simple fact that just last week the old Electronic Arts announced it will be taken private at $210 per share by a consortium of private equity firms… This was an industry with three major players, but now with Activision gone and EA going private, Take-Two’s now the only major publicly traded American video game company that’s a pure play. Now, I think this is huge. Not only were some very sophisticated investors willing to pay a premium for EA, but Take-Two has real scarcity value now. If you want a traditional video game publisher, you either need to mess around with the Japanese market or bet on Take-Two…

If you bought this stock eight months before the last Grand Theft Auto in 2013, and that would be in January 2013, and then you held it for the next two years, 133% gain. Here’s the bottom line: Grand Theft Auto VI is almost guaranteed to be a major hit. And in the meantime, Take-Two’s already firing on all cylinders. And once EA goes private, it will be the only pure-play American video game publisher that’s publicly traded. Just keep in mind, if you’re taking the plunge into Take-Two here, you have to be able to stomach any delays to GTA VI. In fact, you should expect delays… But I’m so confident in Take-Two that I actually hope that the next big game gets delayed and the stock comes down hard, which will give you an even better buying opportunity.”

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) develops, publishes, and markets video games across consoles, mobile devices, and PCs. The company’s lineup has franchises like Grand Theft Auto, Red Dead Redemption, NBA 2K, WWE 2K, BioShock, and more.

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Disclosure: None. This article is originally published at Insider Monkey.