Very good for the stock after the breakout to come back and test 200... chart looks very good. 50 going to cross 200 in a week... quarter report shortly after that. Then June/July Katy Perry and likely another star before Q3 report. They may get consolidated here by a bigger player... I would like to see them become the big fish...but I don't think they have enough cash for that kind of acquisition path. It is more likely they get picked up for $1b in cash/stock. JMHO.
Nice breakdown! Thank you, I am sure it will be valuable to many investors trying to understand the risk/reward of this investment.
Yes there is doubt. It all depends on oil. There is a level of oil where EXXI will not make money and therefore will not be able to make debt payments. If Oil sits at that level (what is it? I don't know...$45 maybe?) for an extended period of time (what is it? I don't know... maybe a year?) then EXXI might begin to show some solvency issues. If oil rebounds above $60 then they are back in the game.
harpo - If oil stays down here or sticks around $30...(which it can do - look at long term inflation adjusted chart...$30 is a good price for oil). Then EXXI is done - it can't afford its debt. Doesn't matter how long you wait. Believe me...I am looking for an opportunity to get in due to the massive drop...but I see way too much risk based on debt and deteriorating earnings/cash flow.
Probably worth noting that ZNGA is STILL a $2B market cap...with REVs at $600M/$700M ....granted, you have to factor in the cash which helps...but this isn't exactly cheap yet.
Does not include ANY $$ for new hits... very very conservative guidance. I think 1.5X Revenue valuation is a little off for this fast growing company. I do think $7 to $9 is about right...might take a couple months to get there or end of Q1...but that is where it is headed.