Lots of shares sold at $29 in after hours last night... Congrats to anyone who grabbed some of those... If I had had the $$$ ready I would have been right there with you... Ten percent overnight is a nice win but the long term is where the really $$$ are. Good luck to all shareholders!
You know what, if I had cash available I'd be buying in after hours. They opened the expected number of stores. They did better than expected and they increased the numbers going forward. Growth comes at a cost, and apparently the old CFO left at a cost, but things don't look bad. Those dumping right now are probably day traders that hoped for a pop and missed out.
They trade on European exchanges under GFT and the two you mention are ADRs. Not enough volume here to get folks excited about ADRs but they can be used to buy/sell shares if you don't mind giving up a little in the process... GameLoft is making solid games, they have a large customer base and a lot of engineers but the company suffers from nepotism. Vivendi is currently buying up shares (10% in October) so we could see real changes coming in 2016... The company could be worth billions to a buyer, but less so if Vivendi continues its stealth purchase of the company. Insiders control about 22% so it won't take much for Vivendi (with its 10 billion euro war chest) to take over if they want to... Consolidation is already happening in the sector (see king entertainment) so it's possible that Gameloft will be next.
Almost all stocks drop below their purchase price... The reason for that, there are better places to put ones money once a deal is struck. A small discount now to pull your cash out and put it to use again is worth it to most traders. The only reason to hold tight if the price is trading this close to the purchase price is if you are certain, or near certain, that a better is coming. It wouldn't surprise me if this traded as low as $17 between now and the purchase date; as I understand it it is quite a ways off from now.
The management team has lead this company to number one in game apps downloads but they've been totally inept at maintaining or increasing value for shareholders. I see the Vivendi investment as a very good thing because someone needs to become an activist for shareholders and they have nearly enough shares to have a loud and clear voice. The fact that share prices have dropped while sales are up tells me that's there's something wrong with management. Perhaps a little too much nepotism as the entire executive team has the same last name. No one there has the best interest of anyone other than the family. It should be in the best interest of the family to create value for all shareholders, but for two years the stock price dropped. There are ways for management teams to help... Hold their salaries down, hold their bonuses down and hold their stock grants down until share prices run back up and everyone wins. By letting the price drop in half the company is now open up to takeover and at a huge discount to where the company was just two years ago (a time when a 25% premium would have been a respectable takeover price). The company makes a lot of claims about how many downloads they see each and every day. Where's the beef??? The Vivendi purchase is the first sign of life I've seen in forever. Go Vivendi!!! By the way, now that you are buying I'll probably buy into pullbacks. I truly believe management will continue to let the stock slide again. A few days ago shares were selling $14... If you were one of the buyers then Congratulations to You!!! Of course, if the Guillemot thought it were a true deal they would have been buying too...
It is much better for your millions of shares to worth something than to line the pockets of your family members with shareholder gold. Steve Jobs used have a take home salary of $1... Perhaps everyone on the GL executive team should follow his lead and reduce their pay until they have a few years of positive growth for shareholders. Watching your stock drop every month for the last two years whilst you brag about number of downloads is a tragedy. You have let shareholders down and it is time for a turn around. A less greedy board and a more shareholder friendly one would be a good start.
People keep feeding them knowing that they are creating value and eventually a payday will come. The people who are investing in this company are doing so with 100x more information than anyone here has. If anyone is willing to put tens of millions into feed then they know the growth they’ll help create will have value. It may take time, but these sort of investors look at a 10 year time horizon with plans of making many times their investment. Meanwhile, the shorts here can save their cosmetic for their wives.