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TTWO; Ascending Triangle Pattern; Carl Icahn

2010 - March 29, Monday

What does Take Two Interactive do? Have you heard of Grand Theft Auto or Bioshock? Yeah, they make them.

Ever since the big drop in January, TTWO has been in my watch list. I wasn’t sure when it was a good time to go in because I couldn’t define any risk or see any type of pattern until two weeks ago. Incidentally, I realized that this is a ascending triangle pattern, a bullish continuation pattern. There’s so many Google links on it. Check it out here. The decreasing volume and higher lows tell us that the selling pressure is almost gone or the people who want to sell have almost finished their selling.

After observing the price movement for about a month or two, I’ve added positions on two occasions at its 20 day simple moving averages or 20 SMA’s: I started one on the 18th and added more on the 29th.

If it breaks above its recent resistance of 10.55 or so, I think this is a strong buy.

If we’re talking about options, the 12.50 calls look really cheap. At the moment of this writing, APR 12.50 calls can be bought at $0.10 and MAY 12.50 calls at $0.20. When it truly breaks above 10.55, you’ll see the values of those options go higher at which point you can either sell for a profit or hold expecting it to go up above 12.50.

[2010.03.29] TTWO

Now the fundamentals. There’s nothing much to talk about fundamentals. It hasn’t made any profit since 2008.

HOWEVER, Carl Icahn, the investment maven, can’t stop buying more shares.

FYI, Icahn holds 13.7% of the company as of March 19th.

I think our man Carl will engulf this company but the valuation of a possible takeover remains a question. I’m not sure what his motives are; but, he is an assurance for taking positions at about the same price as I did.

Here’s a trailer on Bioshock 2. FYI, this game is a bit disturbing; but I loved the first one.

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