Here is an exercise for anyone investing $22 right now in iDreamsky… Go to their website, press the button for English, then try to determine why they have nearly a billion dollar valuation. Next go to the website for GameLoft (one of iDreamsky’s partners) and try to determine if they should have an equal valuation or more. Then lookup GameLoft’s American Adrs; their volume is near zero but if you place an offer anywhere close to their European list price then it should go through… Long term both companies should do very well but right now I believe that one is slightly overvalued and that one is extremely undervalued. Perhaps you can guess which one…
It is rare that you find a gaming company with solid earnings, growth, profitability, lots of new product releases, platform expansion and little or more analyst coverage. It is also rare to find a gaming company that releases one of the world’s top new multiplayer games then the market takes their price down? IMHO, the recent drop with their share price (nearly 50% below the 12mo high) has more to do with the market they are listed on and less to do with their product and day to day business.
GameLoft is based in Paris but they have offices here in New York and New Orleans. If a company based in China (iDreamSky has very few products) can list here and receive a nearly billion dollar valuation then imagine what a solid company like GameLoft could achieve simply by listing on an American exchange?
IMHO, if GameLoft listed here they would become the talk of the town, analysts would start covering them and the press would say enough that many new gamers would be drawn to their product, AND by the way they have a very nice library of extremely high quality product that play well on almost every handheld device and are now expanding to the PC community.
I believe that GameLoft is one of those rare gems that few investors ever fund until it is too late. Their current valuation makes them an acquisition target for all of the big boys… Activision, Electronic Arts, Apple, Microsoft, Amazon, Google and perhaps even Facebook. As a shareholder I wouldn’t give up my shares for anything less than 3x the current valuation; unfortunately, I’m not a big enough own to ensure that sort of deal. Personally, I wish they would list on the NASDAQ because then we’d probably see at least a double along with the liquidity to buy or sell shares as one pleases. The current ADRs are a nice way for a few of us to get in before the rest but the volume and coverage isn’t enough to make it easy.
Here's to new high's in the next year!!!
May all your dreams come true...
I see that a relative small (a few hundred employees) company that is based in China decided to list here and the press can't say enough go things about iDreamSky... By the way, they happen to be a partner with GameLoft and their may function is to convert popular video games for the Chinese market (assuming they can get the creators to share their source code)... Folks are so excited about the prospects of iDreamSky that they have given it market valuation of around $925Mil which is approximately 76% higher than GameLoft's valuation... IMHO, that's not bad for a company with only a few hundred employees and very little original content of their own... Anyone here have any idea how many games GameLoft has, and on how many platforms and in how many languages? Personally I think that someday they will have created nearly as much value as iDreamSky has, but suspect that they will have to list here to do it... The European market just doesn't give enough respect to game companies that get much of their business from overseas (places like North and South America, DOH!!!)
Anyone here know why GameLoft is dropping so much?
I can think of one and only one answer… No one in America trades their stock! Most days the volume is near zero due to the lack of a true NASDAQ listing; that keeps the investment community from talking about the company. If they had a NASDAQ listing then CNBC and other news services would probably talk up several of the above events. Simply making American investors aware of their company would make many new customers aware and that would lead to greater product sales.
IMHO, everything should be going in their favor: They have teamed up with Marvel for a variety of games, they have ported a variety of games to YunOS, they have released a number of new games to Windows (both phone & pc), they have released Modern Combat 5 on several major platforms (already in the top five of Apple’s store), they have updated Minion Rush (one of their more successful games), they have ported many of their games to Android, they are optimizing several of their games for ZTE 9, and they had fairly decent earnings.
I’m guessing that the CEO of the company doesn’t want to succeed by going international. His products already sell international so that should be enough, right? WRONG! Almost no one in the Americas talk about his company and that keeps it from getting the free publicity that could take it to much higher levels. It’s experiencing a fire sale because of volatility in Europe and the surrounding areas but where do most of their product sales come from? I’m guessing America yet most American investors have not heard of the company.
GameLoft, volatility is thy middle name…
Sentiment: Strong Buy
Okay, this release is going to be much bigger than I expected... iOS, Android and now Windows!!!
IMHO, this little tiny gaming company is teaming with a lot of big boys and it's only a matter of time before one of them buys them out... Partnering with Disney / Marvel on several projects... Now partnering with Microsoft... They've been releasing products for iOS for years and Android for nearly as long.
If NEST (maker of thermostats and smoke alarms) can be bought out for $19Bil then a company that makes dozens of great games for multiple platforms has to have a bit more value than $0.67Bil
The Americas don't really talk much about GameLoft but that would quickly change if they were bought out by one of the big ones (Disney, Microsoft, Google, Apple, Amazon, Activision, Electronic Arts, Etc.) or if they moved their stock to the NASDAQ.
I'm buying and holding in expectation of the day when GameLoft goes from being a little know game manufacturer to one of the greats.
Sentiment: Strong Buy
leedow, I highly suggest you try Googling for: independence contract drilling ipo
These things take time but it is clearly in the works
Most of their games were written for either the iPad or iPhone and later ported to other platforms. I highly doubt that there's a lot of old world software there. They seem to be pretty good and fast at building new games; not the sort of PC gibberish that you're describing.
I mention them because they have very solid earnings for a company that few have heard of and because Apple has a ton of cashing sitting idle in Europe. I could see building from scratch if you thought you could do better, but that's a pretty big if. Take a look at GameLoft's website, try a few of they free-mium games (games you get free now but pay more later to unlock features) and then tell me it's not a good idea. I'd also suggest taking a look at their last earnings statement; GameLoft doesn't need a company like Apple, yet IMHO they could become a whole heck of a lot bigger simply by joining Apple and letting the Apple marketing machine include some of their games in their advertising. FYI, some of the newer games are multi player (over the net) and not just in the iPad to iPad sense.
GameLoft is a well-run European gaming company with ties to Disney for several of their Marvel games. This is a company that does little to no advertising yet their products are doing fairly well in all of the various app stores. IMHO, if someone big were to buy them then the publicity alone would make their portfolio of products a lot more valuable (attracting many new customers). The company currently has an ADR but the volume is near zero so it’s pretty clear that few investors know about them. IMHO, Apple has a unique opportunity to use their European War chest and pick up a fantastic company… BTW, they might also be a good fit for an entertainment company like Disney, a content company like Amazon or another gaming company like Activision. The only reason I think they might be a good investment for Apple is because they have a huge European War chest and I believe GameLoft is a great long term investment… Just not a great one for American investors because its ADRs are a joke (little or no volume).
Oops, typo... "Apple has tons of money in European banks just waiting to be put to use... If Google could pay 19-Billion-USD for a one-hit-wonder like Nest then perhaps Apple should consider buying up Nest for one or two billion. "
That should read: "Perhaps Apple should consider buying up GameLoft for one or two billion"
GoPro went public a few days ago and it has already doubled from the IPO price.
A few minutes ago one of the talking heads on CNBC claimed it was because: "We raised awareness of the product and that's going to help sales"
GameLoft creates some of the best games available for iPhones, iPads, Android Devices, Amazon FireTV and for many many more products... BUT! In a sea of hundreds of thousands of app, No One is helping to market GameLoft apps.
This is why some company like Google, Apple, Amazon, Activision, Disney, etc... Should buy GameLoft and turn it into a blockbuster company. The company is little known here in America but the minute someone tries to buy them, or the minute their consider an official listing on the NASDAQ... Then they will become the name that many talk about and lots of new customers will flood in to try their apps.
Apple has tons of money in European banks just waiting to be put to use... If Google could pay 19-Billion-USD for a one-hit-wonder like Nest then perhaps Apple should consider buying up Nest for one or two billion.
Tis something to think about...
Sentiment: Strong Buy
I'm still hoping that someday they will allow this one to trade on the NASDAQ. The low volume / low attention they get in Europe certainly keeps the price relatively stable but this company still trades like a company stuck in the mud and unable to get out. Adding them to the NASDAQ would cause lots of talking heads to give them free press. In turn that would draw both new investors and new customers to the company. IMHO, it would be a win win for the company... FYI, I'm still a buyer here and consider this to be a great long term investment; in spite of the extremely low volume for their ADR.
Sentiment: Strong Buy
Too much cash held overseas? Why not go on a shopping spree?
GameLoft appears to be a good candidate as they makes many games sold in the app store and are fairly profitable.
Food for thought...
Today's call buying is off the hook! 1324 contracts bought today for this Friday's $32, 2922 contracts for $32.50, 4253 contracts for $33, 1626 for $33.50, 1939 for $34, 1335 for $35 and hundreds of additional contracts for various prices... Note each contract covers 100 shares........ These all expire this Friday!!! The sum of these appear to out number all of today's Twitter option purchases for outlying weeks and months... Don't get me wrong, they are plenty of options purchased for other dates, but most of those weren't purchased today... Someone is gambling a fair amount of money on seeing higher prices before the end of this week. For their sake I hope they are right.
Unfortunately tim too much of it makes sense if you follow the history. The ADM partnership was a good one. ADM supplied the land, they bankrolled a huge facility and they gave them both time and money. Unfortunately, the world was not ready for large quantities of biodegradable plastic that cost significantly more than petroleum based plastics (people always want stuff for less so paying more doesn’t cut it). ADM had so much money invested that they had to mark up the plastic but that was not going to work so they broke the partnership, paid Metabolix to go away, let Metabolix keep all patents licenses and more. ADM then wrote off the whole thing and turned around and leased the facility to Solazyme… Metabolix, armed with everything they learned from working with ADM then decided to downsize and went on a search for the best facility. IMHO, that is where the real problem began; I believe that Eno was looking for a facility and not really a partner. A product like Metabolix needs to be funded by someone big enough to take it mainstream. Eno instead picked someone who offered a deal that would have kept more profits with Metabolix; unfortunately, he choose poorly. Management really needs to look for a partner who will take on the lion’s share of the risks, costs and profits but will mass produce so much that Metabolix will get rich too. A multi-year contract that will ensure Metabolix’s growth but will give them the option to go it on their own in three to five years. I’ve seen startups latch themselves to larger companies and promise to build things to their specs. That is a great way to get the ball rolling and bootstrap a business. In some cases the partner comes back and buys the little guy for unimaginable amounts of money. In other cases it is simply a stepping stone to bigger and better things. Metabolix owns enough IP that they are currently worth many times their current market cap. They can certainly capitalize off that if they don’t get too greedy and agre
Regarding price movement… The volume here tends to be next to non-existent which probably scares most American investors away from the pink sheet version. When zero pinksheet shares trade here Yahoo shows the same closing price as the prior day’s close; that may cause new investors to question the validity of this equity… To find out what the real price is you need to look at the European quote; that is always the best place to start before placing an offer to buy or sell. Try using GFT.PA ... That should give you the price in Paris in Euros. Then convert that price to dollars by Googling for something like: “price EUR to USD” (where price is what you found for GFT.PA). Today’s actual close was 6.98 EUR which is somewhere near $9.65 USD.
I believe that the Euronext closes around 8:30AM PST so our early morning trades should go through fairly quickly. Anything after that is probably placed in an after-hours market and has the same issues as placing a trade here in the after-hours market (low volume, greater price volatility, etc.). Personally most of my trades have been after 8:30AM PST and my orders usually go through but I tend to pay up a few cents to purchase shares and discount a bit to sell shares.
Hopefully this helps
Sentiment: Strong Buy
Greetings chad and welcome to this board... It tends to be fairly quiet here because most of us don't check in very often.
Another yahoo user once explained these shares as follows (and I suspect he's right): i think you guys don't understand how the gameloft shares on pinksheets work they're actually proxies to the Europe shares. so the liquidity is the same because it's the same! you just have to use the Euroup stock to determine on what you can sell and how much and when. :D it's sorta complicated since the time zone difference is significant. but that's how ADRs on pink sheets function. :D not actually like ADRs on other exchanges that actually trade independently
If that is the case then any trading we do before 8:30AM PST will probably be directly traded on the Euronext and our orders should go through fairly fast. FYI, I don't place most of my orders until after 9AM PST which may be equivalent to their after-hours market and would explain why many of my orders sit for a fairly long time before going through... The low volume probably occurs because the actual stock isn't directly listed on an American exchange and investors are fearful of trading a securities that shows little or no daily volume... Personally, I'm almost always able to trade these shares as long as I build in a slight premium for my bids or a small discount for my asks.
Sentiment: Strong Buy
You are right, it's all about ads and earnings
As far as I can tell my friends and family have been more active.. That's hardly a consensus but it's a good start. Facebook ads are the most on target of any one the market.
IMHO, People should be selling Google to buy Facebook