It seems that gaming company Take-Two Interactive Software can't get a break lately. After a couple successful software releases from its 2K division, the stock is coming under fire for selling its Joytech video-game accessory unit to Mad Catz Interactive (MCZ). Being a gamer myself, I have not heard of Joytech (though Mad Catz can use all the help it can get right now), so it came as a bit of shock to me to see that TTWO shares have fallen more than 4% on news of the sale of this division.
The stock is currently clinging to support in the 15.50 region, with its 10-day moving average offering up an additional layer of potential support. A break of these key levels could put the brakes on the equity's fledging rebound from several months of heavy selling. Meanwhile, pessimism blankets the stock, as 45% of its float is sold short, and 11 of the 13 analysts following TTWO rate it a hold or worse. Should today's pullback prove to be an overreaction due to heavy market selling, the shares should still be poised to continue their run higher.