Well stated. I also own shares and recently added a few more. Another reason I like this stock, company, and sector is because it is a bit of a hedge against a faltering economy.
I'll take a stab at it....Because nothing is guaranteed, 100% certain. It is the same reason why "a bird in the hand is worth two in the bush." If you pheasant or grouse hunt, you'll understand the truth in that statement. It is the same reason why I bought some PNNT and NRZ and BAC and BP and a couple others just after the open on Monday. None of those stocks are going to double any time soon, yet I was relatively sure I could make 3 - 10% within a few days. So, even though I was certain MCZ is a 5 - 10 bagger from this level, I still temporarily deployed a few dollars elsewhere to grab the low hanging fruit. While we all know MCZ will trade well over $3 in calendar 2016, we do not know if it will be in January or June or December......so might as well wait to buy until the day before it goes up.
b_fr_nk, I actually DO admire your approach of going "all in" in a stock in which you believe. Over the years, I continue to migrate more and more in that direction. It does make one's portfolio immune to market fluctuations and in some ways eliminates the worry. Also increases the likelihood of big big gains in one's wealth. I hope you are 100% correct on this one.
.....so your 710,000 shares of MCZ are/is the only money you have "in the stock market"........really? I had always thought you were a heavy hitter/deep-pockets/many many millions o dollars man. Now I'm sad.
Added more shares of PNNT, NRZ, BP, VTSI earlier today. Will likely add more HPT but didn't yet.
Good time to get into VTSI, someone has about 350k shares sitting for the taking at 8 cents.
That would be an AWESOME question to ask at the early Sept shareholder meeting. Hope someone actually can attend and ASK QUESTIONS and report back. Last several years the number of shareholder attendees was ZERO according to IR buffoons.
There is no way to know Razer's profitability with 100% certainty. But based on their products and shelf space and marketing AND #employees verses revenue AND corporate structure.....I would be willing to bet they are NOT PROFITABLE.
While there are a handful of stupidly overpriced big name stocks, there are also literally 500 - 1000 undervalued stocks. Many of these are trading at EV/EBITDA sub-5 and sub-3 and sub-1! and some at even less than true net cash on hand. There has never been a better time for a stock picker to be picking up truly undervalued stocks. There has never been a better time for a dividend picker to be cherry picking dividend stocks. So while the market is currently being stupid, there is no way that will persist. Cheap oil, cheap steel, cheap gasoline, cheap energy is putting real money into the hands of consumers. While painful for the energy sector, it is good for everyone else....including stocks like MCZ.
My only other comment is that people forget that the market has gone NOWHERE for the last 15 years! It is the same price today as then, yet profits and balance sheets and management is all in better shape.
Good times ahead. 100% certainty.
That is interesting and shows one what is possible in terms of MCZ valuation. Razor has approx. 3X the employees and approx. 3X the revenue....even though Razor is viewed as up/coming great growth and MAd Catz is in a trough! Company is valued at about 3.5X revenue. (And if you believe Razor is more profitable than Mad Catz then you are truly out of your mind.)
Mad Catz will have current year revenue of $150 - $250mil. Apply a 3.5X multiplier on $180mil and the company is worth $630mil or about $9 per share. Or look at it this way, a company like Razor with such a rich valuation would be silly not to buy Mad Catz at valuations up to about 2X revenue.
"MCZ....the 20 bagger I could have had".....someone on this board will be saying that in a year or two.
In my opinion they cannot buy right now as they are obviously in possession of material non-public info, namely the actual order and pre-order numbers for RB4.
Things usually don't play out exactly as we all expect. All I know is the most powerful emotion is greed. As the stock crosses $1 there will be buyers, as it crosses $2 even more buyers, ditto for $3, $4, $5......There are many who would not even think of buying a penny stock, but put a price of $4 on it and they will buy with no worries. There are many who will only buy when momentum shows the clear path is up. Many others will look at the $80+mil Q3 and extend that for 4 quarters and happily buy KNOWING it is undervalued. Mad Catz will likely paint a picture so rosy by March that even some of us on this board will become believers.
You are right though, the real game is just starting. Fun times ahead.
Probably about 80% of retail buyers never read a board like this. Makes me feel they are the smart ones and I'm in the stupid 20% group.
Mad Catz can extend the life of RB4 for many quarters....new songs, new instruments, new instrument features, etc.......Of course that is why we are at rock band FOUR, the game/concept is proven and interest/sales continue.
When I say their financials have never been better I am simply referring to the amount of Cash minus Debt, I'm not smart enough to dig much deeper.
I do think the company took the easy way out with respect to selling shares at 41 cents. If I were the CEO/CFO, I would have simply issued some sort of debt to a hand full of buddies. I know I could raise $10million with 3 or 4 phone calls in 20 minutes (slight exaggeration....but only slight) if I absolutely had to.....and I am an absolute nobody. Terms would be something like...."hey, you give me $3mil today and I give you $3mil in one year and another 0.5mil in two years". The response would have been..."sounds good, ok.".....sorry to digress and revert.
In the context of a company and a stock, "one trick pony" has a negative connotation.
Scary, I'm in a ramblin mood.....Maybe my main point is......just relax, be happy they have RB4, don't worry about 2017 because lots of stuff can happen between now and then......and much of it is good.
NOT and never has been and never will be a one trick pony. Just spent 30 minutes catching up on all the posts of the last couple days. Amazing. With alledged longs that are on this board who needs bashers.
Give Mad Catz some credit, they DID get the RB deal and terms are pretty favorable for them with a huge piece of the pie. They are a small company with finite resources, if they had not gotten RB, you can be sure they would have gotten something else or developed something or a different partnership or maybe an acquisition or whatever. Say what you want about DR, he is a survivor and Mad Catz has continued to survive in one of the toughest businesses in the world. The CFO is great, the company has NEVER EVER been as financially strong as they are today. They have paid off tens of millions in debt over the last half decade and are poised to have buckets and buckets of cash in about 9 months.
To say they are a one trick pony is stupid. They just sold 13mil of stuff during this Summer of retail disasters everywhere. And they did it at close to breakeven. Lots of big names can't touch this sort of performance. They are going to do 150mil to 200mil this FY with strong EPS. And you can bet your bottom dollar that the OUTLOOK for FY17 will be even stronger. This is a 100% certain LOCK to trade over $2 and probably $3 at some point in calendar 2016. I would also bet my last penny that they either make a big acquisition in late 2016 or get bought by a bigger fish at $4 or $5.
We should all just go away and log back in in December....and then in March......and August. Cheers.
Q1=15mil and loss of 2 cents
Q2=40mil and profit of 4 cents
Q3=80mil and profit of 15 cents
Q4=40mil and profit of 7 cents
FY= 175mil and EPS=24cents.....AMEN!
Then, guidance will be provided for nest FY (FY17) for higher revenue and earnings.....and at that point stock crosses $5 and avg daily volume will be 2mil shares.