Monday Nov 2nd, shares of Ambarella closed up around 5% after analysts at FBN Securities initiated coverage with an "outperform" rating and a $70-per-share price target... Here's hoping they are right!!!
And the share price drops nearly 2% from the last close... Go figure?
It's pretty clear why Vivendi is buying shares but I'm totally at a loss to why European investors aren't.
Folks, King Digital is being bought by Activision for $5.9 Billion dollars, if this is a sign of things to come then you shouldn't be selling off your shares. GameLoft has plenty of active uses, lots of apps and are number one in many categories yet European investors have them deeply discounted to where they were just two years ago... Go figure?
Could be good for all companies in the sector :)
GameLoft has an interesting chart on their website that shows voting rights as of September… Back then it was 22.5% founders (execs), 11.66% Amber Capital, 8.88% Fidelity, 4.94% Allianz Global Investors, 4.25% DNB Asset Management and 47.77% Others… I imagine now that Vivendi has over 10% they’ll become part of that chart, yet I suspect that they’ll have to increase to over 25% to get a say in the company. It should be interesting to watch in the coming months… This week’s press had an interesting comment: These acquisitions were not specifically designed as a preparatory step for a plan to takeover Ubisoft and Gameloft, says Vivendi in a statement. Nevertheless, over the six coming months, Vivendi cannot rule out the possibility of considering such a plan.
GameLoft needs to strengthen their share price if they want to keep the other 47.44% on their side… Today’s announcement that two of their top games now run on the brand new (in stores today) Apple TV is a very big step in the right direction. Of course, anything that increases their portfolio size while increasing their worldwide reach is a step in the right direction. I believe that GameLoft is making a lot of the right steps which is why they’ve caught the attention of Vivendi and perhaps others.
Press: Confirming some nervy feelings at smaller videogame developers Ubisoft and Gameloft, Vivendi which has taken quick stakes of 10% in each company says it's thinking about bigger shares, and won't rule out a bid to take the firms over in the next six months… After Vivendi took initial stakes in the firms, and then quickly dipped again, the two French game makers issued statements saying they didn't agree with Vivendi's moves and that they wanted to remain independent...These acquisitions were not specifically designed as a preparatory step for a plan to takeover Ubisoft and Gameloft, says Vivendi in a statement. Nevertheless, over the six coming months, Vivendi cannot rule out the possibility of considering such a plan.
Suggestion for Gameloft, if you want to stay independent then start keeping your shareholders happy. Over the last two years you’ve made a lot of steps to improve shareholder value but the stock price fell from over 8 euros to below 3. Clearly you were doing something wrong and Vivendi took advantage of that by buying 10% below 4… I currently welcome the positive influence that Vivendi brought to your stock; showing everyone that they knew how to spot a value and that they still see a value here.
Unfortunately, I’m underwater here as much of my investment was made years ago before your share price tanked. I find it hard to believe that while GameLoft was becoming the number one creator of gaming apps their stock price was taking a dive. This I blame on current management.
Apple just announced that: The future of television is here AND the future of television is apps.
Gameloft get your act together!!!
Oops, that should read "euros" instead of "dollars"... This seems like a great initial investment as 3.74 euro (the overall avg.) is a very good entry point.
It appears that Vivendi did most of their purchasing over the last few months while prices were floundering near 5-year lows. They averaged around 3.74 euro per share and may have finished up with a 3-million-plus share purchase on October 8th at prices between 3.58 and 4.09 euro per share… This seems like a great initial investment as $3.74 (the overall avg.) is a very good entry point. I imagine that Vivendi could just let this ride and make a lot of money but if management continues to let shares founder then it wouldn’t surprise me to see Vivendi take on a much big interest and make shareholder friendly improvements.
See today's press about Vivendi and GameLoft
This is a company with billions buying a teaser 6% slice of our favorite little game company. I suspect they would have bought a lot more but there haven't been a lot of sellers... Of course, those who were selling never realized that someone was buying as they practically gave their shares away... Foolishly as the company was becoming the top video game app provider in the world. Hopefully Vivendi goes a lot further someday as they know a bit more about running a world class company.
Sentiment: Strong Buy