let's also pretend sales from the other segments remain somewhat stable, and that MCZ manages about $220M in sales for all of fy14. Assuming gross margins of 30% and relatively flat SGA expenses of $40M for the year yields $26M in EBITDA or $.41 per share. Subtract taxes, forex, ect, and let's pretend again that $.27 makes it to the bottom line as EPS. Assuming that MOJO and GameSmart and Tritton and ect are somewhat "evergreen", and that the $220M sales/year rate is sustainable, what valuation do you give the shares? A 10 P/E gives $2.70 per share. 0.5 time sales gives $1.73 per share. Hard to say what a fair value might be if MOJO is a hit.
Hypothetical. Sales from other segments will increase obviously with new consoles, so they are going higher. A good franchise for 2 or 3 of the new games. Xbox one gears of war. One of the several new music games and an Activision shooter. Well that will happen. What is hypothetical is if they sell 1.4 million MOJO units. The other segments will increase sales with the new consoles. I'd be looking at more of a grand $0.40 EPS as a CEO farewell.
I admire your optimism, but this little MOJO box is more in my field of expertise.
If you look at the Warhead design, it was CAKE compared to this....
This product could spend 2 years in R&D with a MAJOR (BILLION DOLLAR COMPANY) PLAYER.
However, I did a top down review of what I feel the components required to pull this off, many can be leveraged at what I feel will be a TOTAL detriment to the bottom line. You just re-package an Android phone....with a couple interfaces....sounds simple right??
******IF*******, they chose to ****LICENSE**** ALL the technology, they should have to pay everyone from junior to grandma. STUPID business model. NVIDIA AIN'T FREE!!!!! They want their 45% margins, and you CAN BANK ON IT....snapdragon...wanna play???...QCOM will EAT U alive.....Android software LICENSES
NVIDIA isn't the only player in town. AMD sells the same products and probably better products. I'm sure AMD would and could underbid NVIDIA. Some of the tweaking, that is still being done is likely MCZ's attempt at finding the best components to make MOJO lower in price while improving functionality.
Micro, if they did 100M on MOJO in fy14, forget talk of a P/E of 10.......IMO, even 15 would be way too conservative. If those numbers that you throw out actually happened, IMO, a 20 P/E would be a minimum P/E on the market reaction toward the stock price. I'm not saying that they can or will do 100M on MOJO for the fiscal year.....I'm just saying that should they do this hypothetical number.....we would witness a shocking reaction, IMO.
Longtime shareholder, first time caller. Micro, that is One million units moved...Actually probably less..With Asia alone, that may just be a first order. Not pumping etc, but they are doing this to move WAY MORE units than just a million. And if by chance they are working with some big name to be THEIR unit of choice..Look out
I will now go back to lurking. Appreciate all