Look at AERO. Another Gomes pump. Down 57% in one month. From $10.45 to $4.48. Another momentum POS just like GLUU.
Are you referring to the RedChip pump involving the former CEO? I just heard his interview with RedChip in their archives from lasy year. That was a red flag right there. RedChip is a scam outfit.
I had corespondence with him on SA a few weeks ago. I asked him if his year-end price target of $30 is still intact after the stock was crushed. He said his entry price was a mistake, but then he said the year isn't over yet. I guess he still has hope. But you're right. No accountability. I doubt he'll ever write about PRCP ever again.
Note: the forward P/E for GLUU is 27, based on 2015 analyst average estimate of $0.14 EPS. Assuming they can even hit the $.14 estimate in 2015 (big if), the forward multiple is still way to high. In this market, it should be around 15-20, which would bring the stock in the range of $2.10 - $2.80. And that's assuming everything goes pertfectly as planned! Now, what if DH14 continues struggling, and their new games continue bombing? What a disaster this could turn out to be.
It was when he said that, that I realized he was nothing more than a momentum trader looking for story stocks (or trying to CREATE story stocks - like spreading rumors that AERO was a marijuana play). GLUU is a perfect example of a story stock (oh wow, look, it has a Glu-on platform!). If he thinks P/E doesn't matter, he's in for a rude awakening in this market.
Also, it broke the 200-dma today. If it breaks the long-term channel support that you mentioned, we'd be in serious trouble and I'd be looking for a $7.50 target. The chart will be seriously broken, but the company itself hasn't yet proven itself broken. The next earnings report should set the record straight.
Oh yeah, now I remember. Some genius told me the GLU-on platform was going to make all their games profitable. Blah blah blah. Right. Only one problem horseshack -- they can't keep any new games on the charts long enough to make a stinking difference. When DH14 runs its course, this one goes down for the count. Any moron can see it. Like a train wreck in slow motion. It wasn't too late sell at $4.90. It wasn't too late to sell at $4.50. Wasn't too late to sell at $4.25, and it sure as heck isn't too late sell at $3.90. Not when $2.00 is coming again.. Like it always does.
Way too soon. This stock will be under $3.00 before the summer is over. History repeats. $2 has always been a decent buy. Then you just sit and wait for the next pump to come around. This one is over.
The most troubling thing about GLUU is that it has a history of rising and falling in massive waves of euphoria/fear. Look at the five-year chart. Every time the stock spiked up anywhere near $6/share, it always collpased back down to $2/share. Every time. How do you think it got to $6/share if not for euphoria and hype? Sound familiar? The next question we should be asking is how does this company show a profit after DH14starts to decline in popularity? They do not have another game that comes anywhere close to the success of DH14. It took DH14 at its peak of success, for this company to eek out a penny in profits (adjusted net, which is cheating no less). How do you think they will fare with a decling DH14? It's possible $2/share could be in the cards again, as always seems to be the case with this company's boom/bust cycles.
This is just my opinion, but I think there is some fear that management can't create a game with staying power (other than DH14). Why do I say this? Because I know of at least one analyst who is bullish on this stock, who previously state that he expects great things from Fronttline Commando 2. This was a few weeks ago. He said it was possible that it could surpass DH14 for the lead in the GLUU line up. Well, the verdict is in, and it bombed. Of course, one bad release doesn't mean much, but there has been a string of new releases that showed early promise and then totally bombed. So the question has risen: can this company create another game that sticks on the charts for longer than one or two weeks? That is the perception that they are currently fighting, and only time will tell. Also, the recent meltdown in the NASDAQ is not helping things at all. That accounts for some of the last months decline. But keep in mind this stock was being sold off before the NASDAQ took a hit.
Well, here we are. Another Friday and another beating. Hard to step in front of this train.
Hi Drmoose, you read me correct. Frankly, I wouldn't have bought into this stock were it not for Gomes' backing. In fact, I wouldn't have touched it with a ten foot pole, but obviously he sees something I don't. And his core picks are worth some serious respect. Still, i don't like how GLUU's new releases have performed. I thought at least one of them would have had some staying power. FC2 was a total bomb relative to the pre-release hype that was generated. Even Gomes thought FC2 would give DH14 a run for the top game title. Man, what a disappointment. What's left in their arsenal? James Bond? Omg. please.
Those two companies are King and Supercell. The best hope for GLUU is industry consolidation. With thousands of players in this space, there's too much diversity of intellectual capital. GLUU is like a rogue planet without a sun. It will just keep floating in space until acted upon by an external force.
"...GLUU is clearly preferred more, not a 1 trick pony like zynga or king"
Really? Let's think about that statement. KING has three games in the top 10 earning games for iPhone in USA accroding to AppAnnie. Meanwhile, GLUU has no games in the top 10. So if you think KING - with three top 10 games - is a "one trick Pony", then by corelation, GLUU is a zero trick pony. In fact, it is less than zero tricks, in comparison to KING. You might want to think about that. So next time you guys want to compare GLUU to KING, be careful because it makes this company look like a POS that can't even hold one top-10 spot. Don't go there. Comparisons to Zynga are a little more favorable.
Like I said, one week down. Another to come. The 50-dma is violated. 200-dma is solid support.
I'm hearing all the analysts saying that KING is a one-trick pony with Candy Crush. Yet when I look at Appannie data for the top earning games for iPhone in the U.S.A., it is readily apparent that KING has steadily owned 3 of the top 10 earning games for a while now. Why do those other two KING games not count for anything according to analysts? Every game company would kill to have just one steady top 10 earner. KING has three! GLUU has none (although "Deer Hunter" used to be in top 10). The point I'm trying to make, is that if KING is considered to be a one-trick pony even though they have three games in top 10 - my God, then what is GLUU? A zero-trick pony? I don't understand the rationale for all the KING bashing. It seems to me that having three games in the top 10 is quite an incredible accomplishment that speaks to their ability to monitize games. And not just one game. I understand that Candy Crush drives 70-80% of their earnings, but the analysts are forgetting the other 20-30% of steady winners now and in the future. If they think KING is a dog, I can't imagine how low of an opinion they must have of GLUU. Maybe this is why the stock has been under pressure lately.
Check out the weekly chart. This week's candle is ugly as sin. Closed exactly at weekly low. Expect more downside in weeks to come.
"..The stock hasn't closed at its high of the day in six months."
You must be a jinx. Took only two days to break your 6-month streak.
Thanks for the cheap shares today. The fear-mongering is really helping me out. I don't know who's funnier - the Seeking Alpha pumpers, or the Yahoo message board bashers. Love those three long-tailed candles below $12 on the daily chart.