"at a potential buyout price of 6-7 times annual sales"
That is the problem with these dog stocks, the only way out for longs is the wishful thinking of a buyout. Then they extrapolate with the revenue, because there is not one penny of earnings for 5 years in a row, every single quarter negative.
Another wishful thinking from the CEO who couldn see clearly the last quarter the exact revenue but now he pretends to see very clearly TWO quarters ahead, what a joke. Anf of course to talk about two quarters ahead he has to show something positive and he mentioned his wishful thinking break-even in the last quarter, thanks to his crystal ball that he has between the legs.
A joke, just a laughable stock. Pumped by Dan Niles, the same guy who will say that earnings are not big enough on some other stocks but is pumping this one for years with only losses to show. Another joke of a analyst.
It was a pleasure trading your money for these disintegrating share certificates. Be patient, we'll find a way, hopefully, to fleece our mobile members from their money.
If you are both, a shareholder and a mobile member, for now send your money directly to our headquarters in California.
"Yet the earnings numbers really aren't that bad"
Agree. Even the revenue were surprisingly strong, increasing two quarters in a row since they said that they had to move their products from stalling natural gas drilling.
The recent increase in dividend is either based on their still solid business or a reckless CFO. For now it seems the former.
"Stock is owned by 13 percent fewer funds in the latest reporting quarter"
When you know that most funds are managed by less than average managers, with most of them showing paltry yields for their investors, you don't pay much heed to that kind of information.
No doubt that when they get out of a stock it hurts the price because of their size and the small float of CRR in particular, but as for their acumen at taking the right decision on a stock...
"I have been long for 6 years"
So after 6 years the GLUU is barely at $4.92 without any split, that makes it a glue stick stuck in the mud.
Kids in kindergarten would love to have something like that on their desk.
One thing for sure, he has his groupies, because each time he pumps it, they jump. Quite funny.
"a leading global developer and publisher of freemium games for smartphone and tablet devices"
When a company pretends to be a leader in its field and announces a ridiculous foreseen total revenue of $94M, almost identical as what it was in 2008, it gives an idea that they are in a micro sector.
If you are impressed by that kind of numbers, good for you.
I am not saying that gaming on mobile is not important, I am saying that it is not a money maker for most. Like the precedent poster wrote, it is part of the process to attract people on the device, but for big firms it is not a way to make money: Ads, Services (ex:streaming movies,music,etc.) are the two main drivers for companies looking for money.
Big companies will allow companies like GLUU to play around, but they won't pay a penny to buy them. And these companies will continue to eat money because the development of games is always expensive and takes time.
Anyone who looks at what happened with game makers for computers or other devices (EA,THQI, etc), you can see that over time they fade away. They all had a big start up, and all of them faltered.
They eat money and no one will ever buy them out.
ZNGA or GLUU, will know the same fate, just faster.
If gaming was the future to make money, Google, Microsoft, Apple, etc, would jump on them. They don't.
With only 23m shares it doesn't take much to move the price up or down substantially.
But considering that some stocks can drop by 30% with bad news, a drop of 8% is nothing.
Don't forget that CRR has still a valuation 2.2x its revenue, there are many stocks in the energy sector that are a lot lower than that, mainly because of their big debt.
Last fall, after months of bad news from the natural gas and coal sectors, the CEO should have stopped the development of the new plants, put them on idle.
Instead, he continued and even started the production, building inventory, at a time when the demand was faltering badly and competitors (Russians and Chineses) were lowering their price significantly.
The only reason why the drop of the stockprice has been orderly is that CRR has no debt and still managing to maintain their revenue.
Now investors have to hope that their specific energy sector will stabilize and come back in fall.
Every single day, CNBC and others are talking about it like they talked about the debt ceiling last year, when everybody knows that few days before the dead end there will be a compromise. CNBC can not stop saying that people lack confidence in the market, but they keep feeding it by scaring people with that non issue of fiscal cliff. Non issue because it will be solved like anything else before, for all politicians have money in the stockmarket and will make sure they continue to benefit from it.
Same drink, same kids running it, same adults hanging around, just a little cheaper.
At least it keeps few hundred millions adults busy intead of seeing them bumming in the streets and thinking at doing bad things.
Ridiculous earnings quarter after quarter, and institutions are giving the green light over and over to the darling AMZN. Quite amazing. It must be that everybody, and in particular fund managers, buys things cheaper on Amazon and they want to keep it going...
The dot com era is far from dead, still going strong.