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

Share Statistics (13-July-11) FY 

2009

FY 

2010

%  

Chg

Q1 

2010

Q1 

2011

%  

Chg

Symbol GLUU Revenue, $Mn 79.34 64.34 -18.9% 17.29 16.43 -5.0%
Current price $5.57 Gross marg. 55.2% 66.5% 20.5% 65.8% 71.6% 8.8%
52wk Range: $1.05-$5.88 Oper. margin -17.8% -15.7%
Avg Vol (3m): 2,686,220 Net margin -22.9% -20.9% -8.7% 21.2% 19.3% -9.0%
Market Cap. 300.06M
Shares Outstanding 53.87M EPS, $ -0.43 -0.30 -30.2% -0.11 -0.05 -54.5%

Source: Reuters.com, SEC Filings.

Recent News

Shares of GLUU traded as much as 13.2% higher on Wednesday, apparently on news that Electronic Arts Inc. (NASDAQ: ERTS) had agreed to buy mobile and casual video games maker PopCap Games for $1.3 billion.  “This transaction only heightens speculation for peer companies of PopCap,” Roth Capital Partners analyst Adam Krejcik said in an interview with Reuters.  “The acquisition of PopCap Games within the sector is the primary driver. It further validates the interest and value in social and mobile gaming companies and the multiples companies are willing to pay for.”

GLUU last week unveiled its Eternity Warriors App for iPad, iPhone and iPod touch.  As stated by Daren Chencinski, GLUU vice president of production, the action game offers the best in 3D freemium graphics and gameplay. The Eternity Warriors App is available for free from the App Store on iPad, iPhone and iPod touch, or at www.itunes.com/appstore/

GLUU shares climbed to a new 52-week high of $5.88 on Wednesday as trading volume reached 6.42 million shares.  The stock is currently trading above its 50-day moving average of $4.91 and above its 200-day moving average of $3.84.

Financial Summary

GLUU reported total revenue of $16.4 million for the first quarter ended March 31, 2011, down 5% from $17.3 million in the same period last year.  However, the figure was still ahead of analyst expectations of $14.1 million.

According to CEO Niccolo de Masi, GLUU’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.

The Company posted a net loss of $3.2 million, or $(0.6) a share, for the quarter, narrowing the year-ago quarter net loss of $3.7 million, or $(0.12). Excluding items, net loss was $(0.02) a share, compared to an ex-item net loss of $(0.03) a share in the year-ago period.  Analysts expected a loss of $(0.07) a share, according to a poll by Thomson Reuters.

GLUU is expected to report its next quarterly earnings on July 28.

Financial Strength (13-July-2011) Company Industry Sector S&P 500
Quick Ratio (MRQ) 3.44 0.48 0.72
Current Ratio (MRQ) 2.01 3.76 0.62 1.05
LT Debt to Equity (MRQ) 0.00 6.02 20.49 134.23
Total Debt to Equity (MRQ) 0.00 8.38 32.97 178.62
Interest Coverage (TTM) -12.97 -0.01 0.29 18.48

Source: Reuters.com, SEC Filings.

Analyst Consensus

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

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

The four analysts offering 12-month price targets for GLUU have a median target of 6.00, with a high estimate of 7.00 and a low estimate of 6.00. The median estimate represents a 15.38% increase from the last price of 5.20.

Source: markets.ft.com

Consensus Estimates Analysis

# of Estimates Mean High Low 1 Year Ago
SALES (in millions)
Quarter Ending Sep-11 5 14.78 15.30 13.40
Quarter Ending Dec-11 5 15.71 16.20 15.40
Year Ending Dec-11 5 63.34 64.70 61.70
Year Ending Dec-12 5 69.68 77.50 64.20
EARNINGS (per share)
Quarter Ending Sep-11 5 -0.07 -0.04 -0.09
Quarter Ending Dec-11 5 -0.06 -0.03 -0.08
Year Ending Dec-11 5 -0.26 -0.18 -0.31
Year Ending Dec-12 5 -0.10 -0.01 -0.28
LT Growth Rate (%) 2 33.75 37.50 30.00

 

Technical Analysis

Source: http://stockcharts.com

GLUU is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent price action.

The MACD for GLUU currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name Ticker Price per Mrkt. Cap. P/E P/S
July-13-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
THQ Inc. THQI 3.40 232.31M 10.00 7.56 0.24 0.24
Activision Blizzard Inc. ATVI 11.98 13.71B 15.97 13.16 3.39 3.01
Take-Two Interactive Software Inc. TTWO 14.92 1.29B 37.30 6.19 1.15 0.78
Electronic Arts Inc. ERTS 24.04 7.99B 28.28 21.84 2.05 1.89
Multimedia & Graphics Software Median 18.97 n/a 2.40 n/a
Glu Mobile Inc. GLUU 5.52 297.36M n/a n/a 4.72 4.26

Source: Thomson Financial

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One Response

  1. Very helpful info. I came upon this stock in May. It has been trending upward since then and has helped increase the value of my portfolio!

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