Continued $TTWO dominance in Amazon Sales Rankings – Jan 5 2019

Take Two has six of the top 21 games on Amazon for XBox One
Six of the top 21 games on Amazon for XBox One
Take Two has 5 of top 21 games on Amazon for PS4.
5 of top 21 games on Amazon for PS4.

PS4 positions faltering a touch compared to the end of December, but the 2k NBA game is staying strong.

New $TTWO positions and RDR2-on-Amazon numbers

RDR2 continued its dominance on top of the Amazon sales charts through the end of December, which I’m using as a proxy for overall sales. I’ve covered the recent charts of TTWO here. I didn’t buy at the dip today, but I think that is a short term low absent a major market downdraft. Analysts even at the bullish end of the spectrum when at when TTWO was around $130 should be salivating soon.

  • Bought 600 TTWO at $103.6
  • 50 January 11, 110 calls at $0.95
  • 20 February 15, 110 calls at $4.84
  • (Update: 20 Feb 15, 135 calls at $0.5 – a real flyer.)

The middle trade is about as much as I’m willing to risk on the notion of a short term pre-announcement or failing that, analyst upgrade given the numbers I believe I’m seeing.

There are further promising signs (though again hard to measure against expectations) as I’ve seen 2K’s NBA2k19 also strongly on the charts in the last week. NBA season really gets started on Christmas, but I don’t know how this compares to expectations or previous years.

Right now, Amazon game sales leaders on PS4: 2, RDR2; 10 & 11, NBA2k19; 12 RDR2; 19 & 20 GTA5. on Xbox One: #1, RDR2, #3, RDR2, #5: NBA2k19, #9, NBA2k19, #11, GTA5, #14, RDR2, #28 GTA5, #37: RDR2 Ultimate ($89!), #47: WWE2k19.

Two captures of Dec 31:

Dec 31 Xbox One leaders on Amazon; RDR 1,3,12, GTA 7, NBA 2k 9, 10.
Dec 31 Xbox One leaders
Dec 31 PS4 games sales leaders on Amazon
Dec 31 PS4 leaders

Outliers of the WSJ Management Top 250

In one of those meh everyone-gets-some-kind-of-award supplements the Wall Street Journal reported the Drucker Institute’s top 250 “best managed” companies.

There are five criteria: customer satisfaction, employee engagement, innovation, social responsibility, and financial strength. The categories are batting only 3-5 out of the gate. “Social responsibility” might be strike against management in some consideration, and Financial Strength can also be read different ways. If you have a good management team and good opportunity, shouldn’t you be levering up? Each of the 250 companies (of 752 reviewed large cap publicly traded firms) got star ratings on a 1-5 scale for each of the five categories: 1,250 total ratings. Grade inflation ran rampant: only 6% of them were a 1 or 2.

Usual tech suspects take the first seven positions. They’re willing to divest from Indiana if not Saudi Arabia which might help their responsibility score, and are throwing off oodles of patents and cash. Since they’re not restaurant chains of course they’re going to invest in their employees.

As one’s eyes’ roam down the printed page, I find it only interesting to pick out the outliers. Who are the unloved runts of the litter?

Of the 1,250 ratings there are only four one star ratings:

DXC Technology (DXC: $66) for Employee Engagement

Phillip Morris International (PM: $83) for Customer Satisfaction

Berkshire Hathaway (BRK-B: $220) for Social Responsibility

Comcast (CMCSA: $39) for Customer Satisfaction: no surprise there.

There are only 75 two star ratings (from my possibly erroneous hand count), highlights:

Amazon (AMZN: $1772) for Social Responsibility

General Electric (GE: $7) for Financial Strength (not 1? This maybe bankrupt once glorious stalwart is the eighteenth best managed company? $10 says their rating on this front was a four or five not very long ago.)

Wal-Mart (WMT: $99), and McDonalds (MCD: $186) for Employee Development. Wal-Mart and McDonalds have probably trained a fifth of America how to work in a corporate job. (I’m pulling that number out of my ### but it probably is enormous.)¬†Wal-Mart openings in depressed areas can have a greater ratio of applicants to positions than Harvard. Training entry level workers to show up on time (and profit share!) is development of a different kind than Google’s and should be on a different scale.

Walt Disney (DIS: $116) for Customer Satisfaction. Wut?? Is there a chemical plant next to a population center also named Walt Disney? Are some people unhappy that ESPN is bundled in the cable plan? Talk to Comcast (see above).

Hewlett-Packard Enterprise (HPE: $15) gets two 2 star ratings (Employee Development, Financial Strength) yet still slides into a tie for 114th

The biggest laugher is Take Two (TTWO: $108) as a 2 star innovator. They’re redefining the cutting edge of open world gaming, providing the analogies for Elon Musk that’s its likely we’re living in a simulated world. This is the same rating given to fast food companies that haven’t changed how they or anyone else does business in many decades.

 

 

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