has a $3 billion market cap and is trading at 19 times sales. I'd never heard of them before today but it proves that the market excitement over mobile gaming pureplays is a worldwide trend. Maybe COLOPL could buy GLUU? :) Would be nice to see GLUU get 1/4 of COLOPL's market cap - that would make it over a double.
No way is GLUU a 100-bagger. That would make it as big as EA, ATVI, TTWO and Zynga combined.
I could definitely envision a triple though if GLUU allows some of the DH14 revenues to reach the bottom line as profits!
How did they generate $9 million of cash when accounts receivable went up QoQ and the company reported a loss? Surely they don't have $9 million of depreciation and amortization each quarter...
This looks like a great long term investment with ICEL having several patents on synthetic stem cells, although short term ICEL looks like dead money after the weak Q3 revenues and the cluster of analyst price targets in the 15-16 range. What does everyone think?
I booted up DH14 last night and noticed there was a new "Services" button which featured offers from other companies in order to get DH14 "gold", i.e. if you signed up for a Hulu account you got 150 gold, or if you clicked on a Verizon ad you got 5 gold. The payment in these cases would be coming from the other firms and not the players themselves, so I doubt any money GLUU gets in this case would show up on App Annie or the other revenue tracking sites. GLUU could be monetizing DH14 even better than we think!
During those last 5 up and down cycles, did GLUU ever have a hit game sitting at the top of the charts?
Sure, I can see what the shorts think, eventually DH14 will run its course and GLUU will squander the money and the run will be over. But it's looking awfully sticky right now and they've already started to bring in seasonal content - i.e. zombie hunts for Halloween, which definitely add to the staying power of DH14.
I hope they don't have you shooting Rudolph for Christmas, though.
Really good point Fred about the comparative market caps. I always wondered why the ALDW cap was larger than the ALJ cap myself, especially since ALDW pays back to ALJ I believe. Still, the dividend potential for ALDW during a good quarter is impressive. I've got to learn a little more about MLP structures if I'm going to hold this thing...
The key driver of refiner profit margins is spreads. Basically they buy oil as an input, break it up and sell the refined products like gasoline, diesel and heating oil. The difference between the price of all the products they sell and the oil they buy is called the crack spread. In Q3 the crack spread sucked.
There's another twist to ALDW which is a key profit driver. It is a "complex" refinery, meaning that it can buy lower quality (think sludgier) oil and break it down using more advanced technology to create the same finished products. Simpler refineries can't do that. So ALDW can also use the lower quality, "sour" oil, while simpler refineries have to use higher quality "sweet" oil like WTI. Usually sour sells at a big discount to sweet so ALDW can make further profits on the discount it gets from buying sour. But in Q3, sour sold for almost the same price as sweet due to logistical issues. That's the biggest reason why ALDW didn't pay a dividend in Q3.
Things will get better.
Mid 2's? That's where GLUU was trading when the stock was entirely a call option on the potential of having a bonafide hit (or getting bought out). Now it has a bonafide hit. Surely it's worth more than that.
from an average of 0 in Q3, and the crack spread has improved, and the Brent-WTI spread is back to $8-9 from around $2-4 during most of Q3. So all of ALDW's key drivers have moved back in its favor especially the most important one which is the sweet-sour spread. I'm thinking they could easily pay 50 or 60 cents in Q4 if these metrics hold up for the rest of the Q.
I know I got out at 3.28 and it might seem stupid to buy higher, but DH14 is higher than ever on the grossing chart and it seems to be striking a good balance between download levels (can't be #1 forever) and grossing (means players are coming back for more.) Wish I had held my big position all the way up but have some ammo left in case Gluu drops a secondary and hurts the price. Wish me luck.
Oilman made a profit. Remember "bulls make money, bears make money, but pigs get slaughtered." Some of us might be holding out for higher levels. But don't bash him - nobody EVER got poor by taking a profit!