A VERY important note about the "30 million in cash and 70 million in stock" is the value of the shares being used to purchase the company. The report specifically states "based on a 10 trading day average through July 29th". The 10-day average through July 29th is about $7. That comes out to 10 million shares. If they had made the purchase 1 quarter ago, it would have been 20 million shares.
Their timing using their stock price to make this acquisition could not have been ANY better.
Was 5.30, which it broke through nicely this morning. Now resistance is 5.51 which, if it gets there today, will most likely hit a wall. If it breaks through 5.50, next resistance is 5.70.
I think this will be back over $6 by the close next Friday.
$2000 is so overly pessimistic it's not even funny. It will split 4:1 and still hit $2000 by 2015. Their burritos are so yummy that it should head into Apple type valuations ($600 Billion or so).
I heard rumors that a burrito phone is on its way shortly. They are dubbing it 'the smart burrito'
No. There is NO secondary offering. Their recent purchase of CRIE games for $100 Million was $30 Million in cash and $70 Million in stock. That is what people are referring to and only bashers are calling it a secondary.
50-day SMA ~5.02 - 5.05 area. It held.
They have beat guidance for the last 2 years and guidance DOUBLED to 80-85 million. That trends revenue to come in around 90-100 million for the quarter, from a previously projected 40 million.
This growth is real. They are about to be profitable. I wouldn't doubt this company and/or CEO to continue delivering. With a market cap under 500 Million and 0 debt, this is a bargain. I've been saying this since 2.50 and it's a better bargain today than it was at 2.50 because their revenue is growing even faster than I had thought.
The day it dropped hard on earnings, I put a heavy bet on a recovery. I picked up 400 August 16th GLU 5.50 call at an average of 45 each. The growth was overshadowed by the acquisition but that will soon change.
Their earnings/revenue has substantially improved in the last year. It was about 1 year ago that post GLUU will hit 1 Billion in revenue In 2015 which seemed ridiculously bullish, but with about $300 Million in 2014, they are only a few more blockbuster games away from it.
GLUU is SMOKING ZNGA exactly right. The only reason ZNGA is so expensive is due to all of the hype that surrounded it during their IPO. At 1 point, it had something ridiculous like a 10 Billion dollar market cap.
I am in GLUU because it is/was ZNGAs lesser known little brother but is growing MUCH faster and has no debt at 1/10th the price.
Holding 606 August 16th GLUU 5.50 calls - almost all of the volume on these today/this morning was me.
This could be HUGE if the CEO has a major announcement tonight.
I am also hearing rumors that CMG is getting into the cloud business. They are going to start offering their iBurrito smart phone to loyal customers and provide enough storage space for 10 frozen burritos with chips/salsa. Customers can just walk in, push a button, add toppings, and woolaa! Instant happiness.
Paid 12.50 per put. Total cost with commissions ~$31,400. Already $11 in the $$ so only $1.50 premium with the entire week to go is a bargain.
These should be north of $25 by weeks end.
GLUU revenues growing FAST
ZNGA revenues declining FAST
Both are about breakeven currently but GLUU EPS is on an upswing and ZNGA is downswing
At the current rate, GLUU will pass ZNGA in revenue in 3 quarters.
Yet, ZNGA is SIX TIMES as expensive as GLUU. It's a joke. This ZNGA miss is GREAT news for GLUU as a company, but most likely, a short term hurdle for GLUU stock.
short term resistance 5.30 (broken), 5.50 (we'll see), and again 5.70-5.80 (hope we see this by close tomorrow).
ZNGA -30% growth next Q revised 25% lower with a 2.5 Billion market cap
GLUU +270% growth next Q revised 100% higher with a 450 Million market cap
Where should your hard earn investment dollars go? Duh.
I believe in this company, in their games, in their development, in their ability to generate revenue, in their ability to continue growing earnings, in their ability to continue raising guidance, and their ability to continue beating that raised guidance.
They have done it for over 2 years straight. Keep betting against that and you will continue getting burned.
The shorts are about to get margin calls.