4-Star Stocks Poised to Pop: Take-Two Interactive

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game publisher Take-Two Interactive (Nasdaq: TTWO) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Take-Two's business and see what CAPS investors are saying about the stock right now.

Take-Two facts

Headquarters (Founded)	New York City (1993)
Market Cap	$903 million
Industry	Software
Trailing-12-Month Revenue	$948.5 million
Management	CEO Ben Feder CFO Lainie Goldstein
Franchises	Grand Theft Auto, NBA 2K, Bioshock, Midnight Club
Return on Equity (Average, Past 3 Years)	(10.8%)
Cash / Debt	$175 million / $138 million
Competitors	Activision Blizzard (Nasdaq: ATVI) Electronic Arts (Nasdaq: ERTS) Microsoft (Nasdaq: MSFT)
CAPS Members Bullish on TTWO Also Bullish on	General Electric (NYSE: GE)
CAPS Members Bearish on TTWO Also Bearish on	Amazon.com (Nasdaq: AMZN) Citigroup (NYSE: C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95.3% of the 342 All-Star members who have rated Take-Two believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars jamespeer and TMFmrquakeroats.

Just last month, jamespeer tapped Take-Two as a tantalizing takeover target:

Can't lose at this price, some big titles due for release late 09 and into 2010 will significantly boost revenues and expect a takeover bid from one of the big boys in the industry, they refused EA's bid of $26 a share last year but don't think they will be able to refuse next time around even though a bid will be less.

In a pitch from two weeks later, TMFmrquakeroats expands on the grand opportunity:

I am very bullish on video games. No, [Take-Two] is not the best opportunity in this industry, but it is usually a good idea to buy a basket of stocks when you are bullish on a certain segment of the market. ... Take-two has a few blockbuster titles it publishes (Elder Scrolls, Bioshock, and Grand Theft Auto; not to mention 2K Sports basketball titles) that drive the economic engine here.

Also, as the EA takeover attempt proved a few years ago, I believe [Take-Two] is an inevitable takeover target by some larger player in the industry.

What do you think about Take-Two, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!