I also want to point something out. Last week we had several games that were sold out on Amazon that are available now. I know they did not sell crazy Zumba numbers but that must mean we only shipped so many and that was our guidance for those games. Now they are all available which means we shipped more. So many of these games we only shipped like 50 to 100k which have been sold buy now. Twister was sold out everywhere but now its available along with the Chipmunksand others. Plus the Chipmunks will be around for a while with its strong box office and the dvd in the spring.
None of the games will hurt because we use outside studios to develop them so our cost are less but also these games have budgets that are all less then a million bucks unlike EA, TTWO, or THQI, that target gamers and need to spend over 40 mil per game. One annalist said that COOL only needs to sell 50k copies of their average game to turn a profit. Management knew this when they guided.
Sooooooooooo there are 1 or 2 of the games that will not show a profit but most will show some.
COOLs thing is to make real cheap suck games that cant lose money and hope that one hits like Zumba or MaMa.
Now as far as Facebook or Moble goes I think they are waisting money at this point because they can never compete plus something like Facebook Mama can hurt MaMa retail sales of the packaged game with the little kids.
Also....... because Hulk or Chipmunks are a brand they can just sit on the shelf and eventually sell just like old Chipmunk and MaMa titles sell this xmas, etc.
Wanted to ask how about cool other games. Will hulk hogan game hurt cool bad. Cool has some other exercise games that didnt do too well. Was it alot for cool to make these games?
Zumba 1 and 2 is selling very well but wondering how their other games might hurt them bottem line.
Im as bullish as they come but there is no way we can see that kind of revenue. Remember we dont record the sales of our games overseas because we use outside distributers who just pay us a royalty. Plus anyway if we did those kind of revs we would have to earn more like .50 this q which ends Jan 31st.
I do however think at some point that $30 mil shelf will be sold to Nontendo or someone so they can take a large stake in COOL before they eventually buy the whole company. Nintendo can pick this company up for free once they open our games up to the Asian Pacific.
This stock has only a problem: few shares = high volatility
SO, we have only a solution: Go inside Majesco's business.
And its business is great!
Zumba 1 + Zumba 2
Games for Nintendo 3Ds
Many games for XBox (last year only Zumba Kinect)
Many games for DS and Wii.
And we have some games in Apple store.
My estimate for Q1 (numbers in march):
75-80M in revenue with more than 0.25 EPS
COOL will announce a distribution partner to make Zumba available in China, Japan, etc.
They are also working on a Zumba kids and Zumba seniors.
No money will be left on the table as they exploit this property using the Just Dance model.
#1 at Walmart and #2 at Amazon with Zumba 2 at #3.
Like many on this board, I believe that the mutual funds are just making their year end moves to adjust their portfolios.
Many stocks get the volume spikes are year end for that very reason. It does appear however, that the major holders aren't in love with cool.
The stock will bounce back mid January BUT maybe not high enough to play this game any longer.