Stock Alert for Glu Mobile Inc. (GLUU)
  • Stock Alert for Glu Mobile Inc. (GLUU)
  • Stock Scan for the Day: GLUU
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    Stock Alert for Glu Mobile Inc. (GLUU)

    Glu Mobile (GLUU) is a global publisher of 3D Social Mobile games for smartphone and tablet devices. Its unique technology platform enables its titles to be accessible to a broad audience of consumers all over the world – supporting iOS, Android, Palm, Windows Phone 7 devices and beyond. The Company is focused on bringing the best in social, freemium, cross-platform mobile gaming experiences to the mass market, and on creating compelling original IP. It has partnership with leading entertainment brands including Activision, Atari, Caesar’s and Fox.

    Founded in 2001, GLUU is headquartered in San Francisco and has major offices in Brazil, China, Russia and the UK.

    Share Statistics (04-May-11) FY 

    2009

    FY 

    2010

    %  

    Chg

    Q4 

    2009

    Q4 

    2010

    %  

    Chg

    Symbol GLUU Revenue, $Mn 79.34 64.34 -18.9% 19.05 15.64 -17.9%
    Current price $4.05 Gross marg. 55.2% 66.5% 20.5% 37.3% 68.8% 84.5%
    52wk Range: $1.02-$5.08 Oper. margin -17.8% -32.5%
    Avg Vol (3m): 2,109,880 Net margin -22.9% -20.9% -8.7% -36.3% -31.6% -12.9%
    Market Cap. 217.96M
    Shares Outstanding 53.82 EPS, $ -0.43 -0.30 -30.2% -0.10 -0.08 -20.0%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of GLUU gained 6.02% to close Wednesday’s trading at $4.05, a day after the mobile phone game maker announced its March quarter results, which beat analyst expectations.

    According to GLUU CEO Niccolo de Masi, the Company’s 3D social mobile games strategy continued to gain traction in the first quarter with non-GAAP smartphone revenues increasing 98% sequentially from the fourth quarter of 2010 to $6.7 million.  “The majority of the new titles launched thus far in 2011 are enjoying considerable success and resonating with users worldwide. These new titles combined with our persistent successes of Q4 2010 drove 20.0 million new installs in Q1 2011 across iOS and Android devices and social networking Web sites. New development partnerships announced during the quarter will further underpin growth in the Glu community worldwide,” de Masi stated.

    In the first quarter, the Company lost $3.2 million, or $0.6 a share, narrowing the year-ago quarter loss of $3.7 million, or $(0.12). Excluding items, net loss was $(o.02) a share, compared to an ex-item net loss of $(0.03) a share in the year-ago period.  Analysts polled by Thomson Reuters expected a loss of $(0.07) a share.

    During the quarter, GLUU saw total revenue of $16.4 million, down 5% from $17.3 million in the same period last year, but was still ahead of analyst expectations of $14.1 million.

    “Our strong first quarter results highlight the successful execution of our cross-platform social gaming strategy,” GLUU CFO Eric R. Ludwig said in a statement.  “Investing in our growth remains a key priority as we focus on building and leveraging our mobile gaming platform. With a strengthened balance sheet and a commitment to allocating resources to our key growth initiatives, we are well positioned to become one of the leading mobile freemium game providers in the industry.”

    Looking forward, the Company expects second quarter adjusted net loss of $(o.o4) to $(o.o6) per share and revenue to be in a range of $15 million to $16.5 million.  Analysts currently expect a loss of $(o.07) a share on revenue of $13.4 million.

    Other News

    GLUU on Tuesday announced a multi-title partnership with Blammo Games through which the Company will act as publisher and Blammo Games as developer on two titles over the next 12 months.  It said the two titles will integrate its tools and technology and underpin growth in the Glu Games Network.  The partnership may be extended for sequels of each release.  The Company also has an option to purchase up to a 25% ownership interest in Blammo. “Blammo Games collaboration with Glu will undoubtedly produce unique, captivating gaming experiences for consumers,” stated CEO De Massi.

    The Company has also recently partnered with Full Fathom Five, the publishing company of best-selling author James Frey, to publish original content as mobile games and novels. GLUU said James Frey and Full Fathom Five will work closely with the Company on the creation of a minimum of four original story ideas during the initial two-year term of the agreement, which will be brought to life in different media, including being written as action-adventure novels and developed into mobile games.

    GLUU shares have traded in a range between $1.02 to $5.08 in the past 52 weeks. The stock is currently above its 50-day moving average of $3.90 and above its 200-day moving average of $2.91. As per current share price, the market capitalization of the Company stands at $217.96 million and it has 53.82 million outstanding shares.

    Visit GLUU at www.glu.com

    Financial Strength (04-May-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 3.60 0.46 0.59
    Current Ratio (MRQ) 1.24 3.93 0.59 0.91
    LT Debt to Equity (MRQ) 0.00 5.42 15.51 93.13
    Total Debt to Equity (MRQ) 16.48 6.74 27.46 142.73
    Interest Coverage (TTM) -12.61 -0.05 0.19 16.43

     

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among three polled investment analysts. Against the Glu Mobile Inc company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 2 1 0 0 0 0
    4 weeks ago 2 1 0 0 0 0
    2 months ago 2 1 0 0 0 0
    3 months ago 1 0 0 0 0 0
    Last year 0 0 1 0 0 0

    The three analysts offering 12-month price targets for GLUU have a median target of 5.25, with a high estimate of 6.00 and a low estimate of 5.00. The median estimate represents a 37.43% increase from the last price of 3.82.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Jun-11 4 13.39 13.86 12.60
    Quarter Ending Sep-11 4 12.97 13.76 12.20
    Year Ending Dec-11 4 53.39 55.24 50.60
    Year Ending Dec-12 4 58.94 61.30 56.64
    EARNINGS (per share)
    Quarter Ending Jun-11 4 -0.07 -0.06 -0.07
    Quarter Ending Sep-11 4 -0.07 -0.06 -0.08
    Year Ending Dec-11 4 -0.26 -0.24 -0.28
    Year Ending Dec-12 4 -0.13 0.05 -0.21
    LT Growth Rate (%) 1 37.50 37.50 37.50

     

    Technical Analysis

    Source: http://stockcharts.com

    GLUU is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

    GLUU’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9-day moving average or signal line. This suggests that positive momentum has begun to slow.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    May04-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Take-Two Interactive Software Inc. TTWO 15.53 1.33B 18.06 13.50 1.21 1.03
     

    THQ Inc.

    THQI 4.42 300.75M n/a 15.79 0.37 0.32
    Activision Blizzard Inc. ATVI 11.32 13.38B 15.72 12.72 3.35 2.93
    Electronic Arts Inc. ERTS 19.92 6.66B 29.73 23.106 1.77 1.69
    Multimedia & Graphics Software Median 21.85 n/a 1.69 n/a
    Glu Mobile Inc. GLUU 4.05 217.96M n/a n/a 4.04 3.70

    Source: Thomson Financial

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