You aren't right. New 52 week lows always bounce up as shorts cover.
However, look up the stats and most of them continue the downtrend.
So you may see $13 to $15, but then $15 to $12 is next.
Are you right when this now goes back to $13 and even lower to $12? No.
Anyone can predict a new 52 week low will bounce up.
It's the long term trend that you need to know.
Go ahead, hold KING for a year... I dare you
what do you think this +5% is? it's already factored in China gains as of today.
Now when they disappoint, that China actually made them lose money, this will plummet overnight next earnings date.
$15 to $10 I think is coming because stupid small investors are cheering on China.
Really? China? There is no profits there - you will see in 3 months!
China is a horrible market. Lots of people, lots of freeloaders.
KING revenue will go up, but profits will decline and WS will punish it with another 20% drop.
Rinse and Repeat.
Just like ZNGA is now 30% of its IPO, KING has alot more room to fall.
If the buy out later this year requires purchasing all shares at $12.50, why is it trading at $12.36?
Is that not a gauranteed 14 cent profit for anyone who picks up all shares?
Not to sound like an AMD basher, as I'm for AMD, but what you just listed is all the reason to invest in INTEL and not AMD.
If Intel can keep stealing, and has done so for 15 years, you would want your money there.
AMD is proving that it can't protect itself.
So, INTEL is basically a bet on AMD plus whatever INTEL comes up with themselves.
CHINA won't save KING either.
Those guys wont play CC years after it was popular here, and they don't have the same money to spend.
This will disappoint next earnings
remember that the people who recently had $18 stop losses in only received $14
This is the giant risk you take with riding a small bounce with KING.
The longterm trend is still down, it's still a STRONG SELL long term.
So you might run $13 to $14 or even $15, but then a disappointing earnings and $15 is $10 on a gap down.
No stop loss will save you
I'm not short. I'm watching KING for the correct time to BUY.
It's close to bottoming out so I'm monitoring it for the start of an uptrend.
You forum junkies are all the same. You think because someone points out negative aspects they MUST be short.
I'm just a better investor than yourself. I BUY at a lower price and I exit before it drops.
I would rather miss KING completely than BUY too early.
I saw $12.90 today and still decided not to buy.
I think it would take years to fall to $6.50
Rather than wait for that long, I'm looking for analysts to upgrade from the STRONG SELL to atleast a HOLD status
Until then, I see no reversal of downtrend given the sky high evaluation.
Everyone I know who played CC has long since quit, and they are not moving on to the next KING game.
There's no "game brand loyalty".
Mobile gamers jump around to the next big thing, and it's not king.
Remember Flappy Bird...
Just buy KING when the STRONG SELL starts to go away. Don't hold your breath
That SeekingAlpha article is a complete pump job ignoring all negative aspects.
I'm actually looking at buying KING, but that is exactly why I want to know all the bad stuff about the company to know when it's all factored in.
I still don't think the new 52 week is done yet
Atleast consider the bad stuff, because you'll want to buy any stock if you read only the good.
Honestly the worst part of KING is the evaluation. The rest is pretty great. It should have IPO around $10 or less to build up properly.
Now since they chose to open on the high price they are in a downtrend with STRONG SELLS.
This is going to take awhile to change to SELL, to HOLD and then to BUY.
KING's STRONG SELLS will not disappear anytime soon
That's exactly what's wrong with this evaluation though Julius.
You like these $165m profits, yet how many of those do you need to get to 4.1B?
That's a long time. It's infinitely long if they are sending all of that out to dividend payments.
I just don't see KING ever having 4B cash on hand
See the problem yet? Profits are there, yet cash is going down and PE is going up.
It's bad management.
The correct decision was to pay 0 dividends and use all the profits to sustain a long term business model.
KING basically are selling out for a one-time gain, rather than going the long term.
ZNGA is now trading roughly 30% of its IPO.
If KING follows that same pattern it is equivalent to $6.50 per share
I can easily argue that ZNGA is a better investment than KING
ZACKS RANK #5 STRONG SELL on KING is absolutely horrible, and you need to take the warning sign for what it is.
You are completely ignoring all the bad signs.
You're assuming that earnings will continue at this rate.
Of coarse if earnings stayed the same for at least a few years than KING would be a steal.
However, they are not only dropping in earnings, but they are dropping cash too.
Where do you think that special dividend is coming out of? Say bye to that cash for a one-time dividend.
And that 6 PE? That's gone too.
Cash going down
PE going up
dividend one-time event
This opportunity is NOT hard to find. I can point you to other stocks with even lower PE, or ones with higher cash and no debt.
The problem is they are slowly sinking ships. Bad long term investments.
KING might be good for a short term trade gain, on a dead cat bounce.
But if you hold KING for years, you will wake up to a $6 or $7 stock later, just like ZNGA went
I'm anticipating the opposite, a pullback from $6 before it continues higher.
I took money off the line at $5.97 to see if that happens
I'm trying not to have many stocks in play for Sept 11, who knows what is going to happen around then with terrorist activity and fear in general