There really is almost no basis to stay invested here. I was able to sell 90% of my position over the last two days at a sizeable loss. I bought into the good earnings two years ago and the growth estimates that accompanied the equity raise. But it is clear now that this business is not a place for me to invest. The company had everything going for it this quarter -- launch of its key products, all available for the holidays, and with the tailwind of a major game (Halo) release for its Tritton products. All it could come up with is a nickle. Given the tepid results for the other three quarters every year, there just isn't anything to get excited about.
On top of that, DR is exhausted. I'm not saying that all of this is his fault (though the relentless focus on "flying" games is something I've never understood). Mobile gaming clearly hurt this business, and its growth prospects, badly. But I was shocked to read the CC transcript and hear him complain about being a public company and having "no visibility" into the marketplace. There are plenty of companies who don't complain about being public, have well recognized profit-making products, great balance sheets, and pay dividends that are not only stable but expected to grow. Those companies have always been my primary investment choices, and consistent with that, I used my sale proceeds of MCZ to buy AAPL (yes, for every 1,000 shares of MCZ I got 1 share of AAPL; that alone should tell you something).
Anyway, good luck to those on the board. I admire the passion of many of the longs here, and their relentless diligence, often insightful and often painfully misguided evidence of confirmation bias. I would like nothing more than to see a development that gets folks out their positions whole or with a profit.
Well I bought a large chunk of the position you sold, i understand you may be a frustrated long but as a new investor here i see a stock trading at book value, growing the profitable parts of its business and selling excelent products. I will hold for 6-18 months either for a buyout or signs that their gamesmart initiative can gain traction. If gamesmart works, i will sell in a few years at $5. i like the risk reward here at this price.