This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

February 4, 2010 - Take-Two Interactive Software (TTWO-NASDAQ) publishes, develops, and distributes interactive entertainment software, hardware, and accessories worldwide. The company develops and publishes software titles for various gaming and entertainment hardware platforms, including PlayStation3 and PlayStation2 computer entertainment systems, PlayStation Portable system, Xbox 360 video game and entertainment system, and Wii and DS systems, as well as for the personal computer and games for Windows.

Its proprietary brand franchises include Grand Theft Auto; Sid Meier's Civilization; Max Payne; Midnight Club; Manhunt; Red Dead Revolver; Bully; BioShock; Sid Meier's Railroads!; Sid Meier's Pirates!; Carnival Games; and Top Spin, as well as licensed brands comprise the sports games Major League Baseball 2K; NBA 2K; and NHL 2K.

The company sells to retail outlets through direct relationships with large retail customers and third party distributors. Its customers include mass merchandisers, specialty retailers, video stores, electronics stores, toy stores, national and regional drug stores, and supermarket and discount store chains. The company was founded in 1993 and is headquartered in New York, New York.

Looking at a stock chart for TTWO is like looking at a roller coaster ride blue print. And some of the downs are scary. Like in 2008 when the price went from $28 to $7.10....in 7 months. Now the ride is going up again. Can it continue?

As you might guess, when a stock price goes on a roller coaster ride (and takes all investors with it), earnings are the reason. No exception here. They went from 53 cents a share in 2005 to minus $2.60 in 2006. Then were minus $1.93 followed by a positive $1.67 in 2008. 2009 saw them back in the red at minus $1.13. Last year finished at a positive 98 cents a share. This year, analysts are looking for $1.50. (The company changed its fiscal year to end on March 31 instead of October 31.) Next earnings report will be on February 8.

For the most recent reported quarter (ended in October), earnings were much better than the same period in 2009, showing 67 cents a share vs 9 cents. New titles boosted sales, ones like NBA 2K11, Mafia II, Red Dead Redemption and Sid Meier's Civilation V. Helping out were more sales delivered digitally. Management is also focused on cost cutting to help margins and the bottom line.

More games are on the way. In a few months the highly anticipated LA Noire will be out. Release date in the U.S. is May 17 and in Europe, May 20. It should be a blockbuster for TTWO. Another game for Duke Nukem is coming (Duke Nukem Forever) shortly. More sports games are slated as well: Top Spin 4 and Major League Baseball 2K11. New digitally delivered games are in development as are more titles from different genres. Management is pursuing opportunities in Asia and Latin America to diversify sales. One more new opportunity: the new platform for game development, Xbox Kenect which could attract new players to Take-Two's games.

Essential numbers: Market Cap is $1.19 billion. Price to sales is 1.01. Price to book is 1.88. Book value is $7.34. Operating margin for the last 12 months was 7.25% and Profit margin was 3.68%. Return on equity was 8.81% and Return on assets was 5.11%. Total cash is $251.18 million or $2.97 a share. Total debt is $104.05 million. Debt to equity is 16.75%. Current ratio is 2.24. Beta is 1.30. In the last 52 weeks, the stock is up 44%. There are 84.61 million shares outstanding with a Float of 60.84 million. Insiders own 2.74% of the stock. Institutions have 104.3% of the Float. There is no dividend.

The stock has moved up quickly in the last two weeks. Investors are getting more confident about continued profitability. New games and markets would suggest that they have good reason for their confidence. Watch the earnings report on February 8 to see how the holiday season was and what management has to say about the future. Once again, this one is only for the more adventuresome. Remember what happened in 2008.