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GLUU strong in $3.40's in PM on this new Motley Fool bullish article
: GLUU ) discussed whether the major hit Deer Hunter 2014 would have staying power. At the time, hope existed that the producer of free games had finally found a method to successfully monetize mobile games. More than a month later, the game remains a huge success, sitting near the top-grossing games on both Apple iOS and Google Play charts, according to AppAnnie.com. The question now isn't if the game will be a success, but how much value this super-sized winner will generate.
The recently announced $3 billion valuation for Clash of the Clans creator Supercell suggests a value potential much higher for Glu Mobile. This news further highlights the potential for Zynga (NASDAQ: ZNGA ) to generate more value if existing successful franchises can be turned into grossing leaders based on skill-based tournaments and awards
Updated Deer Hunter 2014 numbers
Now a month after the official release of Deer Hunter 2014, the game still remains in the top daily downloads on both Apple iOS and Google Play. For the iPhone, it ranks in the 100 best-grossing apps in 76 countries and has consistently been a top-10 game in the U.S. The constant downloads lead to even further potential for generating revenue.
ThinkGaming.com lists the daily revenue on the iOS in the U.S. at around $305,000, with 282,000 daily new users. This site lists Deer Hunter 2014 as the sixth top-grossing game on that platform. The Candy Crush Saga generates roughly $870,000 of revenue per day in the top spot and Clash of Clans drops to $684,000 in the second spot. These numbers bounce around on a daily basis, so interested investors might want to check the numbers often.
Supercell valuation perspective
Anybody not following mobile games closely probably hasn't noticed that the majority of the massive winners have come from relatively obscure publishers. The recent hot hand goes to Supercell, which has created two extremely successful games in Clash of the Clans and Hay Day. According to AppAnnie.com, both games routinely gross in the top 5 iOS games. Combine that with the fact that the Wall Street Journal released that Supercell generated $178 million in quarterly revenue, and it provides some valuable insight into what Deer Hunter 2014 could be producing.
Considering the private company has only two games in production, those numbers suggest that top game, Clash of the Clans, generated $100 million in revenue, while the second game made around $78 million. With a ranking slightly below those games, this could suggest that Deer Hunter might achieve $50 million in quarterly revenue. Remember that analysts only forecast revenue of $28 million for the quarter, and the company has a hoard of new and old games that should generate at least $20 million.
Can Zynga replicate that success?
The most telling part of the current AppAnnie stats is the general lack of Zynga-listed games in the top 20 or even 50. The domestic iPhone has Zynga Poker ranked 18, and no other game ranks in the top 50. Zynga has good company in Electronic Arts (NASDAQ: EA ) , listing only The Simpsons: Tapped Out and The Sims FreePlay in the top 30 games. The game list is littered with previously unknown publishers such as King.com, Kabam, Funzio and others. Even previously popular publisher of the Angry Birds franchise, Rovio Entertainment, has mostly disappeared from the top games list.
While Electronic Arts obtains a significant amount of revenue from digital platforms, the megahits still appear mostly unpredictable unless Glu Mobile developed the platform to success with the games as a service initiated with Deer Hunter.
Bottom line
At a market cap below $250 million, Glu Mobile investors continue to hope the success of Deer Hunter 2014 can be replicated in other upcoming fourth-quarter releases such as Motocross Meltdown, Eternity Warriors 3 and Frontline Commando 2. The numbers being generated continue to suggest that Glu Mobile can produce revenue and earnings that far exceed those presented prior to the release of Deer Hunter 2014.
Another key will be whether this success can translate into established players like Electronic Arts and Zynga consistently generating high-grossing games. The rewards could be huge, considering Supercell and its two mobile games are now worth more than all the farms and words created by Zynga and its cash hoard.
Good luck all....tuna
GLUU +.16 in PM to $3.46 on FOOL bullish article out:
GLUU ) discussed whether the major hit Deer Hunter 2014 would have staying power. At the time, hope existed that the producer of free games had finally found a method to successfully monetize mobile games. More than a month later, the game remains a huge success, sitting near the top-grossing games on both Apple iOS and Google Play charts, according to AppAnnie.com. The question now isn't if the game will be a success, but how much value this super-sized winner will generate.
The recently announced $3 billion valuation for Clash of the Clans creator Supercell suggests a value potential much higher for Glu Mobile. This news further highlights the potential for Zynga (NASDAQ: ZNGA ) to generate more value if existing successful franchises can be turned into grossing leaders based on skill-based tournaments and awards
Updated Deer Hunter 2014 numbers
Now a month after the official release of Deer Hunter 2014, the game still remains in the top daily downloads on both Apple iOS and Google Play. For the iPhone, it ranks in the 100 best-grossing apps in 76 countries and has consistently been a top-10 game in the U.S. The constant downloads lead to even further potential for generating revenue.
ThinkGaming.com lists the daily revenue on the iOS in the U.S. at around $305,000, with 282,000 daily new users. This site lists Deer Hunter 2014 as the sixth top-grossing game on that platform. The Candy Crush Saga generates roughly $870,000 of revenue per day in the top spot and Clash of Clans drops to $684,000 in the second spot. These numbers bounce around on a daily basis, so interested investors might want to check the numbers often.
Supercell valuation perspective
Anybody not following mobile games closely probably hasn't noticed that the majority of the massive winners have come from relatively obscure publishers. The recent hot hand goes to Supercell, which has created two extremely successful games in Clash of the Clans and Hay Day. According to AppAnnie.com, both games routinely gross in the top 5 iOS games. Combine that with the fact that the Wall Street Journal released that Supercell generated $178 million in quarterly revenue, and it provides some valuable insight into what Deer Hunter 2014 could be producing.
Considering the private company has only two games in production, those numbers suggest that top game, Clash of the Clans, generated $100 million in revenue, while the second game made around $78 million. With a ranking slightly below those games, this could suggest that Deer Hunter might achieve $50 million in quarterly revenue. Remember that analysts only forecast revenue of $28 million for the quarter, and the company has a hoard of new and old games that should generate at least $20 million.
Can Zynga replicate that success?
The most telling part of the current AppAnnie stats is the general lack of Zynga-listed games in the top 20 or even 50. The domestic iPhone has Zynga Poker ranked 18, and no other game ranks in the top 50. Zynga has good company in Electronic Arts (NASDAQ: EA ) , listing only The Simpsons: Tapped Out and The Sims FreePlay in the top 30 games. The game list is littered with previously unknown publishers such as King.com, Kabam, Funzio and others. Even previously popular publisher of the Angry Birds franchise, Rovio Entertainment, has mostly disappeared from the top games list.
While Electronic Arts obtains a significant amount of revenue from digital platforms, the megahits still appear mostly unpredictable unless Glu Mobile developed the platform to success with the games as a service initiated with Deer Hunter.
Bottom line
At a market cap below $250 million, Glu Mobile investors continue to hope the success of Deer Hunter 2014 can be replicated in other upcoming fourth-quarter releases such as Motocross Meltdown, Eternity Warriors 3 and Frontline Commando 2. The numbers being generated continue to suggest that Glu Mobile can produce revenue and earnings that far exceed those presented prior to the release of Deer Hunter 2014.
Another key will be whether this success can translate into established players like Electronic Arts and Zynga consistently generating high-grossing games. The rewards could be huge, considering Supercell and its two mobile games are now worth more than all the farms and words created by Zynga and its cash hoard.
This turnaround company keeps trending up....best of luck today!! tuna
HERO $7.17 beat estimates on revs and net income today but so far hasn't moved. I just read through the CC and this comment struck me as sounding very positive and bullish for them going forward:
"The Aramco extensions, along with the continued strength in the Gulf of Mexico, have pushed our revenue backlog to an all-time high of just over $1 billion, an increase of more than 50% since the end of the second quarter. We expect our revenue backlog to further expand as we have a number of contract extensions under discussion for several of our domestic rigs, as well as new contracts that we expect on a Super A class rigs."
I think this company will draw positive attention over the coming weeks, but I admit to being surprised and disappointed in the lack of a move up today, but in no hurry to sell...tuna
Another major catalyst re: GLUU is that over 25% of the float is "short" per Yahoo statistics as of Sept 30th 2013....liking that a lot plus several new upgrades from analysts with price targets between $4 and $5 in the last few weeks also. tuna
Watch ZNGA + GLUU (same field) after ZNGA earnings out and the stock up big time in AH...and GLUU closed $3.30 and now at $3.41 in AH but doesn't report until Wednesday after the close. I've been trading GLUU for about a month or more since the $2.50s when they first announced their latest huge winner in DEER HUNTER 2014! Looking for a Q3 that is not great but guidance for Q4 that is very upbeat...inho. Best of luck all....tuna
Yes...ZNGA pop may help my same industry GLUU $3.30 close and $3.41 in AH now. I've witnessed several strong opens only to followed by hits in GLUU but today it did the opposite...finally! With GLUU posting Q3 next Wednesday after the close I certainly expect fireworks with a bias to the upside is my best guess. Will know before long....my HERO add at $7.18 is so far a no show after today reporting beats on earnings and revs for the Q, but I'll give it some time...with .81 projected next year a PE of less than 10 isn't so risky. GL to you and everyone!! tuna
Trying HERO 7.18 -.01 on strong earnings and revs reported today:
•InPlay: Hercules Offshore beats by $0.04, beats on revsBriefing.com(Thu 7:37AM EDT)
Opened up a bit but sold off quickly here...tuna
Thanks ManicTrader!! STXS was amazing!! Hoping to see GLUU $3.15 close do very well after Q3 earnings and cc on Wed. next week after the close. Not expecting much good news on Q3 itself but looking for positive guidance on Q4 with the great numbers on their latest game Deer Hunter 2014!! Took a scalp on BRY of .68 also today...all the best! tuna
Hahaha!!! Thanks....like it!!! My GLUU is quite volatile early on but all to the downside with low of $3.12 a little bit ago and then popping to low $3.20's and slipping again to $3.16 last...though I'm in it big already will add more if it hits $3.02 before the close....may you make profits on your trades relentlessly!!!!!!!! :)
Added BRY 45.82 +.08 on pullback after quick pop on strong earnings this morning:
•InPlay: Berry Petroleum beats by $0.08, beats on revs; raises 2013 production forecastBriefing.com(Wed 6:26AM EDT)
tuna
STXS broke $4 on news and my CNDO loser beginning to move up now at $1.85 +.19 so far...my biggest holding GLUU taking a hit at $3.12 lod but popped back to $3.21 quickly...GL all....tuna
My disgusting CNDO 1.85 +.19 on good volume maybe finally ready for some upside...STXS w/news broke $4 up over .50 also but the rest of my stuff is not good...gl today dav1234 and all....tuna
STXS $3.57 close "IN PLAY" and up in pm on this news:
STXS: InPlay: Stereotaxis reports prelim Q3 results in preparation for rights offering; sees rev of ~$10.6-11.1 mln (no estimate); - Briefing.com
STXS: Stereotaxis Niobe(R) System Receives Highest Reimbursement Classification in Japan - GlobeNewswire
STXS $3.57 close up in pm on this news:
STXS: InPlay: Stereotaxis reports prelim Q3 results in preparation for rights offering; sees rev of ~$10.6-11.1 mln (no estimate); - Briefing.com
STXS: Stereotaxis Niobe(R) System Receives Highest Reimbursement Classification in Japan - GlobeNewswire
gl all...tuna
Added DEPO on big news at $7.86 w/hod $8.02 so far...
•Another Astute Deal For Depomedat Seeking Alpha(Tue 9:38AM EDT)
•DepoMed Set to Jump On Sale of Royalty Portfolio to PDL BioPharma for $240.5 Millionat Motley Fool(Tue 8:22AM EDT)
•Depomed Sells Type 2 Diabetes Royalties and Milestones to PDL BioPharma Call scheduled for 5:00 pm ET todayCCBN(Mon, Oct 21)
•InPlay: Depomed sells Type 2 diabetes royalties and milestones to PDL BioPharma (PDLI) for $240.5 mln (stock is halted)Briefing.com(Mon, Oct 21)
•Depomed Sells Type 2 Diabetes Royalties And Milestones To PDL BioPharma For $240.5 MillionPR Newswire(Mon, Oct 21)
•PDL BioPharma Acquires Portfolio of Diabetes Royalty Rights and Milestones from DepomedPR Newswire(Mon, Oct 21)
tuna
Thanks dav1234....and I'm looking for a strong day and finish to GLUU with Cowen rating of outperform and $5 target today!! GL...tuna
Yet another new rec on GLUU $3.23 this time by Cowen: Cowen initiates coverage on Glu Mobile (NASDAQ: GLUU) with a Outperform. PT $5.00.
For an analyst ratings summary and ratings history on Glu Mobile click here. For more ratings news on Glu Mobile click here.
Shares of Glu Mobile closed at $3.23 yesterday, with a 52 week range of $1.99-$3.86
Maybe this time we won't see a fade late in the day as in the last 2 days imho...tuna
Another good initial rating on GLUU w/$5.00 target by Cowen:
Cowen initiates coverage on Glu Mobile (NASDAQ: GLUU) with a Outperform. PT $5.00.
For an analyst ratings summary and ratings history on Glu Mobile click here. For more ratings news on Glu Mobile click here.
Shares of Glu Mobile closed at $3.23 yesterday, with a 52 week range of $1.99-$3.86
I was fortunate to take a small gain on DANG before the warning came out on missing revenue estimates today. I also took the gain on ENT just over 10 when it began to back off and another smaller gain on FONR. In hindsight I should have sold some GLUU in the high 3.30's but it fell too quickly and I missed out. I think I'll get better opportunities going forward on it. Have a great week....tuna
Big contract today for profitable Chinese company OSN $1.51 +.51 w/HOD $1.79
Ossen Innovation Announces New Steel Strand Supply Contract for Infrastructure Project in Jujiang City
PR NewswirePress Release: Ossen Innovation Co., Ltd. – 4 hours ago..
SHANGHAI, Oct. 21, 2013 /PRNewswire-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has been awarded a contract to supply 15,000 tons of plain surface steel strands to a construction company responsible for building the new Jiujiang express loop highway in Jiujiang City, Jiangxi Province, China. The steel strands will be used in the construction of bridges and elevated highways in this infrastructure project.
"Ossen is very pleased to announce this important contract win," said Dr. Liang Tang, Chairman of Ossen Innovation. "The 29-mile, $508 million Jiujiang express loop highway project is an important part of China's 2020 highway network plan and will connect Jiujiang City and Xingzi County. The proximity of our Jiujiang manufacturing facility to this infrastructure project, combined with our solid reputation for delivering high quality products for similar projects, allowed us to successfully bid on and ultimately win this contract. Based on information received from the construction company responsible for building the Jujiang express loop highway, Ossen expects to begin delivery of the plain surface steel strands in the first quarter of 2014. We hope to announce additional supply contracts for other China-based infrastructure projects in the near future," concluded Dr. Tang.
About Ossen Innovation Co., Ltd.
Ossen Innovation Co., Ltd. manufactures and sells a wide variety of plain surface pre-stressed steel materials and rare earth coated and zinc coated pre-stressed steel materials. The Company's products are mainly used in the construction of bridges, as well as in highways and other infrastructure projects. Ossen has two manufacturing facilities located in Maanshan, Anhui Province, and Jiujiang, Jiangxi Province.
Safe Harbor Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's annual report on Form 20-F. All information provided in this press release is as of the date hereof. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
For more information, please contact:
Ossen Innovation Co., Ltd.
Feng Peng, Chief Financial Officer
Email: feng.peng@ossencorp.com
Phone: +86 (21) 6888-8886
Web: www.osseninnovation.com
ENT 10.94 close "in play" on this news:
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Global Eagle Entertainment Acquires IFE Services Limited
GlobeNewswirePress Release: Global Eagle Entertainment – 26 minutes ago..
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Transaction Solidifies Position as In-Flight Media Leader
Adds to Coverage of Key Emerging Markets
LOS ANGELES, Oct. 21, 2013 (GLOBE NEWSWIRE) -- Global Eagle Entertainment Inc. (ENT) announced today that it has acquired Travel Entertainment Group Equity Limited, the UK-based parent company of IFE Services Limited (IFE Services) from GCP Capital Partners LLP for approximately $36 million in cash. IFE Services is a leading provider of in-flight entertainment services to airlines and cruise lines worldwide. The acquisition expands Global Eagle's leadership in delivering content and software solutions to the international travel industry.
Global Eagle's purchase of IFE Services follows closely on the Company's acquisition of digital content leader Post Modern Group (PMG) in July 2013. With a 20-year history, IFE Services provides a broad range of content solutions, spanning movies, TV programs, games, mobile apps, publications, safety videos and technical support to a worldwide client base of over 50 airline and cruise ship operators. IFE Services has a particularly strong customer presence among quickly-growing airlines in developing markets in Africa, Asia and South America.
"This acquisition is in line with our strategic objective to grow our position as the leading provider of in-flight media, to broaden our client base and to further strengthen the combined service offerings we provide to airlines worldwide," said John LaValle, Chief Executive Officer of Global Eagle. "The addition of IFE Services will significantly enhance our presence in multiple fast-growing, emerging markets where our combined service offerings are in demand. We look forward to working together with IFE's CEO Andy McEwan and the talented team at IFE Services in bringing our innovative solutions to the worldwide travel industry."
"This is another transaction that we expect to be highly complementary to our existing business," said Dave Davis, Chief Financial Officer of Global Eagle. "In addition to adding IFE Service's strong cash flows, we believe we can unlock substantial efficiencies from our combined operations to the benefit of our shareholders. At the same time, we continue to be in a solid position to pursue additional acquisitions given our healthy balance sheet, strong management team and growing global footprint."
For the full year 2013 and on a stand-alone basis, IFE Services is expected to generate approximately $37 million to $40 million of annual revenue* and approximately $7 million to $9 million of Adjusted EBITDA.* In addition, we expect to achieve substantial synergies beginning in first half of 2014 as a result of the combination of IFE Services with Global Eagle.
"Having supported the business and the management team of IFE over the last five years, we are delighted that, in Global Eagle, IFE Services has a supportive new owner that will be able to capitalize on its achievements to date," said Adam Maidment, Managing Director of GCP Capital Partners LLP. "We would like to thank the CEO, Andy McEwan, and his team for their excellent work over the last few years and we wish them well in this next phase of the business' development."
In connection with the consummation of the IFE transaction, Global Eagle agreed to sell to one of its existing institutional stockholders, 2,435,472 shares of Global Eagle's common stock for an aggregate purchase price of $21,000,000, in a registered direct offering by means of a prospectus supplement to Global Eagle's effective shelf registration statement which Global Eagle will file with the Securities and Exchange Commission ("SEC"). In addition, Global Eagle will issue to PAR Investment Partners, L.P., an existing Global Eagle stockholder, a $19,000,000 promissory note which is convertible into shares of Global Eagle's non-voting common stock. The terms of these sales of securities will be contained in a Current Report on Form 8-K to be filed by Global Eagle with the SEC.
About Global Eagle
Global Eagle Entertainment Inc. is the leading full service platform offering both content and connectivity for the worldwide airline industry. Through its combined content, distribution and technology platforms, Global Eagle provides airlines and the millions of travelers they serve with the industry's most complete offering of in-flight video content, e-commerce and information services. Through its Row 44 subsidiary, Global Eagle utilizes Ku-band satellite technology to provide airline passengers with Internet access, live television, shopping and travel-related information. Currently installed on more than 500 aircraft, Row 44 has the largest fleet of connected entertainment platforms operating over land and sea globally. In addition, through its AIA subsidiary, Global Eagle provides film and television content, games and applications to more than 130 airlines worldwide. Global Eagle is headquartered in greater Los Angeles, California and maintains offices and support personnel around the world. Find out more at www.globaleagleent.com.
About IFE Services
IFE Services is a leading provider of in-flight entertainment solutions to the airline industry. Its focus on quality and innovation is supported by a strong commitment to customer service and investment in the latest systems and technologies.
IFE Services supplies a full range of services to enable its clients to provide a first class entertainment experience to passengers. They include movies, TV programs, audio, games, 3D map, apps, safety and destination films, portable entertainment systems, onboard publications and AVOD technical support and management.
IFE Services works with a broad client-base worldwide of over 50 airlines and cruise ship operators. The company's headquarters are in the UK with regional offices located in Madrid, Singapore, Santiago, Sao Paulo, Nairobi, Kuala Lumpur, Oberhausen, Johannesburg and Irvine, California.
About GCP Capital Partners LLP
GCP Capital Partners LLP ("GCP") is a leading UK mid-market private equity business. It was established in 2007 as Greenhill Capital Partners Europe, the European private equity arm of Greenhill & Co. Inc.
Notices Regarding Sales of Securities
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, sale or solicitation would be unlawful. The registered direct offering is being made only by means of the prospectus supplement and accompanying base prospectus. When available, copies of the prospectus supplement and accompanying base prospectus relating to the registered direct offering may be obtained at the SEC's website at http://www.sec.gov or directly from the company by contacting Global Eagle Entertainment Inc., Attention: Corporate Secretary, 4353 Park Terrace Drive, Westlake Village, CA 91361 (818) 706-3111. The issuance of the convertible promissory note and the underlying shares will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
* Financial Information of IFE
IFE has historically prepared its financial statements in accordance with U.K. Generally Accepted Accounting Practice ("U.K. GAAP"). Accordingly, projected revenue and certain components of adjusted EBITDA of IFE for full year 2013 on a stand-alone basis have been prepared in accordance with U.K. GAAP. Certain differences exist between U.K. GAAP and generally accepted accounting principles in the United States of America which might be material to these projections. With respect to 2013 projected adjusted EBITDA of IFE Services, we define adjusted EBITDA as net earnings before interest expense, income taxes, depreciation and amortization, plus exceptional costs incurred at the company that will no longer be incurred after the transaction has closed. Adjusted EBITDA is a non-GAAP financial measure commonly used by financial analysts, investors, rating agencies and other interested parties in evaluating companies. However, adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as an alternative to, operating income, cash flow, EPS or other income or cash flow data prepared in accordance with GAAP. A quantitative reconciliation is not available without unreasonable efforts.
Cautionary Note Concerning Forward-Looking Statements
We make forward-looking statements in this release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including without limitation our earnings, revenues, expenses or other future financial or business performance or strategies, or the impact of legal or regulatory matters on our business, results of operations or financial condition. These statements may be preceded by, followed by or include the words "may," "might," "will," "will likely result," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or similar expressions. These forward-looking statements are based on information available to us as of the date of this earnings release, and involve substantial risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements as a result of as a result of new information, future events or developments or otherwise.
Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following: our ability to integrate the Row 44, AIA, PMG and IFE businesses, the ability of the combined business to grow, including through acquisitions which we are able to successfully integrate, and the ability of our executive officers to manage growth profitably; the possibility that any of the anticipated benefits of our acquisitions, including synergies, cost savings and positive financial impact, will not be realized as anticipated or at all; the outcome of any legal proceedings pending or that may be instituted against us or our subsidiaries; changes in laws or regulations that apply to us or our industry; our ability to recognize and timely implement future technologies in the satellite connectivity space, including Ka-band system development and deployment; our ability to deliver end-to-end network performance sufficient to meet increasing airline customer and passenger demand; our ability to obtain and maintain international authorizations to operate our service over the airspace of foreign jurisdictions our customers utilize; our ability to expand our service offerings and deliver on our service roadmap; our ability to timely and cost-effectively identify and license television and media content that passengers will purchase; general economic and technological circumstances in the satellite transponder market, including access to transponder space in capacity limited regions and successful launch of replacement transponder capacity where applicable; our ability to obtain and maintain licenses for content used on legacy installed in-flight entertainment systems; the loss of, or failure to realize benefits from, agreements with our airline partners; the loss of relationships with original equipment manufacturers or dealers; unfavorable economic conditions in the airline industry and economy as a whole; our ability to expand our domestic or international operations, including our ability to grow our business with current and potential future airline partners or successfully partner with satellite service providers, including Hughes Network Systems; our reliance on third-party satellite service providers and equipment and other suppliers, including single source providers and suppliers; the effects of service interruptions or delays, technology failures, material defects or errors in our software, damage to our equipment or geopolitical restrictions; the limited operating history of our connectivity and in-flight television and media products; costs associated with defending pending or future intellectual property infringement actions and other litigation or claims; increases in our projected capital expenditures due to, among other things, unexpected costs incurred in connection with the roll out of our technology roadmap or our international plan of expansion; fluctuation in our operating results; the demand for in-flight broadband internet access services and market acceptance for our products and services; and other risks and uncertainties set forth in this release and in our most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q.
tuna
GLUU up to $3.35 in pm....continues weeks of strength with Q3 coming up Wed of next week after the close. I don't often hold through earnings but am this time with expectations of beating on revenues and more importantly of raising guidance for revs and earnings in Q4 in cc....just imho. Also in DANG up .35 in PM and ENT looking for a break over $10 and GSAT, FONR, and loser CNDO. Best of luck all....tuna
Pre-market up on DANG $11.70 +.35 and GLUU $3.35 +.05 and ENT though not trading in PM so far is a stone's throw from breaking $10! Sitting in these plus loser CNDO and a winner FONR which has done nicely for me since reporting great earnings a couple of weeks ago. Good luck all today and all week! tuna
GLUU $3.30 close was #5 in Motley Fool's article on the week's hot stocks today:
"Finally, Glu Mobile moved higher after B. Riley upgraded shares of the mobile-app publisher. B. Riley pushed its price target from $2.75 to $3.75 in upgrading its outlook from "neutral" to "buy."
Glu Mobile and other casual-gaming specialists have been out of favor, but that's starting to change now that Candy Crush Saga creator King is generating buzz for its upcoming IPO."
Sorry I didn't copy and paste the other 4 stocks...enjoy your weekend!! tuna
GLUU $3.30 made Motley Fool's 5 Hot stocks for the week (only copied and pasted the write-up on them) in today's PR:
"Finally, Glu Mobile moved higher after B. Riley upgraded shares of the mobile-app publisher. B. Riley pushed its price target from $2.75 to $3.75 in upgrading its outlook from "neutral" to "buy."
Glu Mobile and other casual-gaming specialists have been out of favor, but that's starting to change now that Candy Crush Saga creator King is generating buzz for its upcoming IPO."
I believe I'll try to trade the upcoming Candy Crush IPO also on it's open...can't get pre-trade shares...ugh! tuna
Ahhh....I recall trading PRKR years back but wish I'd been in it again for this huge move. In the meantime I got my $3.20 + close on my GLUU w/$3.30 close, but missed a $10 close on ENT by .06 and my dog with fleas CNDO actually fell into the $1.70's vs my wish for a close of $2 or more. So I only managed 1 for 3 today but did take $1.63 on a quick trade in IPO VJET. Took a little GLUU off the table at $3.29 but it hit $3.39 HOD. I know there is surely risk with keeping the majority of my shares through Q3 earnings on Oct. 30th but I believe I'll continue to hold for most of my shares. I could get back all my loss in CNDO with GLUU with even a modest pop from here. Have a great weekend dav1234 and everyone! tuna
Took $1.63 from VJET but sold in mid 23's....ugh! My favorite GLUU closed $3.30 +.15 and Q 3 reports Oct. 30th...looking for a slight beat in revs...not sure about a beat in earnngs, but in the CC I do look for a very upbeat Q 4 with their hit Deer Hunter 2014. My ENT closed $9.94 and I was hoping for plus $10 but maybe Monday. The bio that spanked me in a huge way CNDO dropped a tad further today to $1.78 but I'm in it at just over $7 as it took a 60+% hit this week...UGH!!! Have a great weekend everyone....tuna
RE: GLUU $3.29 in PM....here is part of a bullish article from SA this morning including a 12 month target price of $9 from "The Focused Stock Trader":
Glu Mobile (GLUU) Releases Mobile Gaming Smash Hit "Deer Hunter 14", Enhances Skill Based Gaming Tournament Capabilities with Skillz Platform
In recent weeks, one of our "The Focused Stock Trader Fab Fifteen" components Glu Mobile has made a big splash with its record-breaking "Deer Hunter" game. In a press release issued on September 25th, the company claimed that the game has broken multiple all-time records for the company.
The game's performance has been an incredible hit so far for the small cap company, reaching the #1 Free Game spot on the iPhone, the iPad, the Mac and Android platforms. Amazon (AMZN) is the sole remaining platform left for the game to be launched. Amazon featured Deer Hunter Reloaded and Deer Hunter 3D in the #1 and #2 spots in the "Games For You" category of their homepage earlier this week.
tuna...best of luck all!!
"Skillz" Set
Glu Mobile also cemented a partnership with Skillz to build out its mobile gaming tournament platform. Skillz, founded in March 2012, provides a platform for skill-based gaming tournaments with real cash prizes. Game developers can implement the Skillz platform into their own games and enable players to enter tournaments in which they will compete against other players for a cash prize. Glu Mobile gets a share from the pot, the same as a casino getting its share from every hand played on a poker table.
Skill-based cash tournaments are legal in 37 states in the US and the Skillz platform is currently legal to use only in the US and only in those states with Skillz will verify a player's location via GPS before playing. Currently Glu offers the real cash skill-based tournament only on their old Deer Hunter Reloaded game available on the Amazon app store but expanding Skillz to other games would be a huge revenue engine for the company.
According to Glu's latest quarterly report, 40.5% of revenue came from the U.S. Currently only 37 states in the U.S. currently allow skill-based gaming (every state except: AZ, AK, CT, DE, FL, IA, LA, MD, MT, SC, SD and TN). With the adoption of the Skillz platform, Glu Mobile could generate significant revenue in a short span of time.
Skillz recently released a case study available for download on their website. In this case study , which covered the "3D Cave Runner" game, Skillz claimed that the inclusion of their platform in this game increased the percentage of paying users to 19%, increased ARPU (average revenue per user) by a factor of 11, 4 times longer game play and 256% better retention, albeit as Skillz is a private company these numbers may be subject to change.
Revenue Sticks like GLUU
According to a release from ThinkGaming.com, Deer Hunter 2014 is bringing in $253,127 in revenue per day in the U.S. and based on past history is probably grossing more than $1,000,000 world-wide. Analysts are currently projecting 2013 Annual revenue of $ 97.1 Million and 2014 Annual Revenue of $113.5 Million. Glu's third quarter guidance calls for revenues between $19.6 Million and $21 Million. Canaccord Genuity analyst Michael Graham recently raised his Glu Mobile target to $4 from $3, commenting that improving game metrics "point to probable upside" for his Q3 estimate. Canaccord's data points to "fairly stable metrics" for older Glu titles in Q3, and "a couple weeks of great performance" for Deer Hunter 2014. Northland Capital also raised its price target to $4 from $3. "The Focused Stock Trader" has a 12 month target of $9.00
For the first half of the year Glu amassed $47.9M in revenue and estimated $19.6-21M in Q3 which means GLUU is expected to have YTD revenues of $67.5-68.9M going into Q4. Using the full year guidance that was reiterated on the Q2 call of $96.8-98.9M, it can be expected that Glu expects revenue in the range of $27.9-31.4M for Q4. This would be a significant improvement over any other quarter in 2013, but if Deer Hunter can sustain its success along with other big-name releases, this will drive Q4 revenues significantly higher.
Technical Analysis by Harry Boxer (TheTechTrader.com
Good luck everyone...tuna
GLUU $3.29 +.14 in PM on bullish article from SA this morning....here is only a part of that article which includes a target price over 12 months of $9 from "The Focused Stock Trader":
Glu Mobile (GLUU) Releases Mobile Gaming Smash Hit "Deer Hunter 14", Enhances Skill Based Gaming Tournament Capabilities with Skillz Platform
In recent weeks, one of our "The Focused Stock Trader Fab Fifteen" components Glu Mobile has made a big splash with its record-breaking "Deer Hunter" game. In a press release issued on September 25th, the company claimed that the game has broken multiple all-time records for the company.
The game's performance has been an incredible hit so far for the small cap company, reaching the #1 Free Game spot on the iPhone, the iPad, the Mac and Android platforms. Amazon (AMZN) is the sole remaining platform left for the game to be launched. Amazon featured Deer Hunter Reloaded and Deer Hunter 3D in the #1 and #2 spots in the "Games For You" category of their homepage earlier this week.
tuna...best of luck all!!
"Skillz" Set
Glu Mobile also cemented a partnership with Skillz to build out its mobile gaming tournament platform. Skillz, founded in March 2012, provides a platform for skill-based gaming tournaments with real cash prizes. Game developers can implement the Skillz platform into their own games and enable players to enter tournaments in which they will compete against other players for a cash prize. Glu Mobile gets a share from the pot, the same as a casino getting its share from every hand played on a poker table.
Skill-based cash tournaments are legal in 37 states in the US and the Skillz platform is currently legal to use only in the US and only in those states with Skillz will verify a player's location via GPS before playing. Currently Glu offers the real cash skill-based tournament only on their old Deer Hunter Reloaded game available on the Amazon app store but expanding Skillz to other games would be a huge revenue engine for the company.
According to Glu's latest quarterly report, 40.5% of revenue came from the U.S. Currently only 37 states in the U.S. currently allow skill-based gaming (every state except: AZ, AK, CT, DE, FL, IA, LA, MD, MT, SC, SD and TN). With the adoption of the Skillz platform, Glu Mobile could generate significant revenue in a short span of time.
Skillz recently released a case study available for download on their website. In this case study , which covered the "3D Cave Runner" game, Skillz claimed that the inclusion of their platform in this game increased the percentage of paying users to 19%, increased ARPU (average revenue per user) by a factor of 11, 4 times longer game play and 256% better retention, albeit as Skillz is a private company these numbers may be subject to change.
Revenue Sticks like GLUU
According to a release from ThinkGaming.com, Deer Hunter 2014 is bringing in $253,127 in revenue per day in the U.S. and based on past history is probably grossing more than $1,000,000 world-wide. Analysts are currently projecting 2013 Annual revenue of $ 97.1 Million and 2014 Annual Revenue of $113.5 Million. Glu's third quarter guidance calls for revenues between $19.6 Million and $21 Million. Canaccord Genuity analyst Michael Graham recently raised his Glu Mobile target to $4 from $3, commenting that improving game metrics "point to probable upside" for his Q3 estimate. Canaccord's data points to "fairly stable metrics" for older Glu titles in Q3, and "a couple weeks of great performance" for Deer Hunter 2014. Northland Capital also raised its price target to $4 from $3. "The Focused Stock Trader" has a 12 month target of $9.00
For the first half of the year Glu amassed $47.9M in revenue and estimated $19.6-21M in Q3 which means GLUU is expected to have YTD revenues of $67.5-68.9M going into Q4. Using the full year guidance that was reiterated on the Q2 call of $96.8-98.9M, it can be expected that Glu expects revenue in the range of $27.9-31.4M for Q4. This would be a significant improvement over any other quarter in 2013, but if Deer Hunter can sustain its success along with other big-name releases, this will drive Q4 revenues significantly higher.
Technical Analysis by Harry Boxer (TheTechTrader.com
I slept pretty good and awoke to see GLUU at $3.36 +.21 in AH and got excited....but I saw it was on very small volume so no big deal but am optimistic about the future of the company in the short and long term. Happy Friday to you and everyone!! Color me happy if GLUU gets back over $3.20 CNDO over $2.00 and ENT breaks $10 by the close....heck, I'd be happy to go 2 for 3!!! Hehehe!! tuna
Yes....will do! Added some more when I saw the DH 2014 revs article at $3.09 so have as much as I probably should of any one stock now...these shares replaced those sold at $3.24 on the move to $3.35 as I missed the HOD significantly which is par for the course for me...hahaha!! Almost 3:30am here and hitting the sack...have a great night...tuna
GLUU $3.18 +.06 beginning to move on DH 2014 estimated revs article out this afternoon. Hit $3.35 a couple of days ago and a $3.86 52wk high so far this year. I'm usually in and out quickly but intend to hold core shares through Oct 30th earnings and CC follow-up. GL to you dav1234 and all!! tuna
ENT $9.73 +.32 with HOD at $9.95 and I'm intending to hold out for double digits on this potential flyer...no pun intended...tuna
GLUU $3.08 estimated revs up HUGE with DEER HUNTER 2014 in new article out today:
Deer Hunter 2014 Rakes In Almost $1 Million A Day For Glu Mobile
Oct 17 2013, 13:36
Disclosure: I am long GLUU. (More...)
Glu Mobile's (NASDAQ:GLUU) newly released game Deer Hunter 2014 is a huge success. The game has topped the free charts and is also hanging in the top 10 spots of the Grossing charts. The game's performance has been an incredible hit so far for the small cap company, reaching the #1 Free Game spot on the iPhone, the iPad, the Mac, and the Android platform. Amazon (AMZN) is the sole remaining platform for the game to be launched on, and the store seems to be excited as both Deer Hunter Reloaded and Deer Hunter 3D were featured in the #1 and #2 spots in the "Games For You" category of the homepage earlier this week.
The game is doing exceptionally well, but as an investor, what it really boils down to is how much revenue the game is bringing in. Below is the daily estimate provided by www.ThinkGaming.com for iOS revenue in the United States.
(click to enlarge)
As you can see above, the estimates show Deer Hunter 2014 bringing in $253,127 in revenue per day, and gaining 278,870 new installs each day. Deer Hunter has been a couple spots higher and a couple spots lower on the top grossing list, but I will use the #7 Top Grossing app figures to demonstrate what this will translate to if Deer Hunter can remain in the top 10 grossing for the majority of the quarter.
Also of note, at the bottom of the graphic you will see that the $253,127 figure is an estimate of United States revenue, on iOS only. Meaning that the other 147 countries, and other 3 platforms are not included in this figure.
To calculate an estimate of total revenue, we can look at Glu's historical revenue figures to give us an idea of what to expect in total revenue from Deer Hunter 2014. We will need to take into account the % of Revenue from the United States, as well as from iOS. These are the figures which I obtained from Glu's 2nd quarter earnings call.
Revenue Percentage by Region
North America
40%
EMEA
23%
APAC/China
24%
Row/Latin America
3%
Revenue Percentage by Platform
iOS
63%
Android
31%
Other
6%
To estimate total revenue generated per day, we will take the U.S. Revenue figure of $253,127, and multiply it by 2.5 (60% of revenue comes from outside North America and multiplying 60% by 2.5 gets us to 100% of total global revenues). This takes us to $632,800 in total global revenue on iOS. It is also important to note that revenue from Mexico and Canada are excluded for easy demonstration purposes, as they are part of the 40% of revenues from North America. Though including them would make the final figures much higher, I am using only the U.S. revenue figures for easier demonstration purposes, and to provide a nice cushion to my estimates.
We can then take that $632,800 in iOS revenue and multiply it by 1.58 (63% x 1.58 =100%) to get total platform revenues. That takes us to $999,824 in total Deer Hunter 2014 revenue per day.
Analysts are currently projecting for 2013 Annual revenue of $ 97.1 Million and 2014 Revenue of $113.5 Million. Glu's third quarter guidance calls for revenues between $19.6 Million and $21 Million.
With a current market cap of $239 Million, Glu would triple its projected 2014 revenues of $113.5 Million from Deer Hunter 2014 alone if it were able to show a similar staying power to Hay Day, Candy Crush, and Clash of Clans. With third quarter revenue guidance of $21M on the high end, Glu could raise its guidance by 50% to $30M and still beat that number by 300%! This would require Deer Hunter 2014 to remain in the top 10 Grossing charts for the entire 4th quarter which will not be an easy feat, but it also does not take into account any of Glu's other games that are still contributing millions of dollars to the bottom line. Not to mention the new 4th quarter release slate of Motocross Meltdown, Eternity Warriors III, Frontline Commando II, or any of Glu's 3rd party games.
Analyst Upgrades
Needless to say, analysts have chimed in with upgrades on Glu Mobile this week.
Analyst
Rating
Prev Price Target
New Price Target
% Increase
Northland Capital
Outperform
$3.00
$4.00
33%
B. Riley
Upgrade to Buy from Neutral
$2.75
$3.75
36%
Canaccord Genuity
Buy
$3.00
$4.00
33%
While these three analysts have already raised their price targets, there are 5 firms still rating the company a hold including Benchmark that initiated coverage on August 15th with a 12 month Price Target of $2.42. Of the 9 analysts currently covering Glu Mobile, the average price target is $3.10. Even with the recent price target boosts to $4, I still find their price targets to undervalue Glu given the success of Deer Hunter 2014.
Taking into account my estimates above, I believe that Glu will post better than expected earnings on October 30th and should raise guidance significantly for the 4th quarter. However, knowing Glu's management, and their 3 years+ streak of earnings beats greater than 25%, they will likely guide only slightly higher. They will also likely call for breakeven results in the 4th quarter, only to surprise with a substantial profit.
Bullish Technical Setup
Not only has Glu Mobile drastically improved fundamentally, it is also set up beautifully technically. The stock closed on Oct 16th, at $3.13, which is not only above the current average price target of $3.10, but it is also above Glu's 20, 50, and 200 day exponential moving averages. Now that the 20 day moving average has crossed through both the 50 and 200 day moving average, and is holding substantially above both… we can expect the 50 day to cross through the 200 day exponential moving average in the days to come, creating the almighty Golden Cross. The 50 day currently sits at $2.63 and has been curling up at a rate of about .02 per day for the last several days towards the 200 day moving average which stands at $2.74. At the current .02 per day rate I suspect the bullish cross to occur in about 6 trading days, slating it to occur on or around Thursday Oct 24th.
Here is the chart
(click to enlarge)
The bullish momentum from the Golden Cross should send the shares through resistance into the high $3 range, and when the company reports on the 30th, I expect the stock to break above its 52 Week high of $3.86 set back in March of this year when the company announced plans to enter real money gambling. It is crazy to think that the stock rallied so much on a chance of real money gambling revenues, but now that the company has produced a record setting, revenue generating game, the stock still can not break out of the low 3's because of the heavy short interest.
Short Interest
Shorts have been in control of Glu's stock for over a year now and that trade has paid off handsomely. Now that the trend has changed from bearish to bullish and Glu is making record revenue, the tides have turned and they are slowly being forced to cover.
Here is the Current Share Statistics
Shares Outstanding
70.53 Million
Float
59.22 Million
% of Float
Institutional Ownership
14.7 Million
24.8%
Insider Ownership
18.16 Million
30.7%
Shares Short
13.53 Million
22.85%
Shares Available to Longs
12.83 Million
21.7%
As you can see, there are very limited shares available (12.83M) to people interested in taking a position. The stock is easily manipulated, and with the number of shares sold short outweighing the number of shares long, the shorts have control yes, but they have put themselves between a rock and a hard place. The heavy weight of the shares they have amassed has managed to hold the stock down, and they are banking on the stock dropping 13% again as it has the last 4 quarters. When they are surprised that it is just not going to pay off this time, there will not be enough shares to go around. The stock is extremely undervalued at these levels because of the predicament the shorts are in, but it creates a great entry point for those wanting to buy shares and who have just a little bit of patience.
Conclusion
Simply put, Glu is set to explode higher. A compilation of bullish technicals, record setting revenue, improved fundamentals, and a very high short interest, will make for quite the ride. I highly suggest that you get in, buckle your seat belt, and enjoy the ride.
Additional disclosure: These figures are simply estimates simply calculated upon estimates provided by ThinkGaming.com. Variables include a difference in actual monetization figures than those used in either my or ThinkGaming's calculations.
Post Unavailable
Additional Information
Added ENT $9.51 +.10 on this bullish article out today comparing it to flyer GOGO:
Forget Gogo: This Cheaper Stock Offers 60% Upside
StreetAuthority NetworkBy Marshall Hargrave | StreetAuthority Network – 9 hours ago
GOGO 17.51 +0.57
ENT 9.50 +0.0900
These days Wi-Fi has become a necessity, a part of our everyday lives that we just can't live without. That demand is now being seen in the friendly skies, as fliers prefer a Wi-Fi connection to amenities such as more legroom or better food.
Carriers are taking note, and one company that stands to benefit from this trend is Global Eagle Entertainment (Nasdaq: ENT).
Global Eagle provides airline passengers with Internet access, live television, video content, shopping and travel information. Its in-flight services have been installed on more than 500 aircraft, covering both land and sea. Through its subsidiary Advanced Inflight Alliance (AIA), Global Eagle provides film and television content, games and applications to more than 130 airlines worldwide.
Big Tailwinds
One of the big tailwinds for Global Eagle is that a Federal Aviation Administration panel just endorsed Wi-Fi as safe for all portions of flights. The panel's recommendations would lift the restrictions on the use of certain handheld devices below 10,000 feet. Only ground-based cellular connections for voice and data would be prohibited. Passengers would be allowed to access their email and the Internet during all phases of a flight, but only through the carrier's Wi-Fi system.
This would be give a distinct advantage to Global Eagle over the largest Wi-Fi provider, Gogo (Nasdaq: GOGO), which provides Wi-Fi services for roughly 75% of the commercial aircraft in the U.S. but relies on cellular towers for its services below 10,000 feet. Global Eagle's services are satellite-based and do not rely on cellular towers. The new recommendations would give a huge competitive advantage to Global Eagle because the FAA currently prohibits the use of Wi-Fi services below 10,000 feet.
Since StreetAuthority expert Andy Obermueller wrote about Gogo a couple of months ago, GOGO is up over 60%. Global Entertainment has the potential to reward shareholders just as nicely.
The market for Global Eagle's services is expected to grow from roughly $700 million last year to an estimated $2.1 billion by 2017. Expected to drive that growth is the rise of international carriers from market leaders Boeing (NYSE: BA) and Airbus, particularly in China. Global Eagle gets 60% of its revenue internationally and only 40% from the U.S. -- but while the U.S. in-flight connectivity penetration rate is 43%, the international penetration rate is only 4%, making the international market the biggest opportunity for Global Eagle.
As a result, analysts expect Global Eagle to post revenue of $263 million for this year and $340 million next year. Earnings are expected to rise from a loss of $1.05 a share this year to a profit of $0.66 a share next year.
Diverse Revenue Streams, Strong Management
Global Eagle has multiple revenue sources. In the second quarter, its largest revenue source was the sale or licensing of content, video and music programming, applications and video games, good for $38 million. Next were Wi-Fi, TV, Video on Demand, shopping and travel-related applications at $12 million. Third was the sale of satellite-based connectivity equipment at $6.4 million. Finally, Global Eagle brought in $5.7 million for technical services such as encoding and editing of media content.
Formed by former MGM CEO Harry Sloan and CBS Entertainment President Jeff Sagansky earlier this year, Global Eagle has a strong management team, which has been helpful in securing content and gaining licenses for TV and film distribution. The company is the exclusive distributor for Lionsgate/Summit Entertainment content, and it has secured Asian, Bollywood, European and Middle Eastern content for its in-flight entertainment offerings.
One of Global Eagle's most exciting initiatives is the launch of its new portal, which it's calling Portal 2.0. This new portal offers improved advertising features. The company has a captive audience with the passengers stuck in their seats, which it can leverage by hitting them with targeted advertising. There's no TiVo on board, so passengers can't skip ads -- and Global Eagle gets to collect the advertising dollars from targeted ads.
Global Eagle's closest comparison is Gogo, which trades at a price-to-sales ratio of 5.3 and a price-to-book ratio of 4.7, compared with Global Eagle at 3.7 and 2.6, respectively. Global Eagle is expected to be profitable next year, while Gogo is not. Global Eagle has the stronger balance sheet, with only $8 million in debt, while Gogo has $245 million. Which raises the question: Why is Gogo worth three times Global Eagle in terms of market cap?
Risks to Consider: The biggest risk for Global Eagle is that satellite providers partner with the airlines and offer their own Wi-Fi and content packages. Over time, expect additional competitors to emerge, but right now Global Eagle has a very strong position in the market.
Action to Take --> Buy Global Eagle for upside to $15. The airline industry is growing rapidly, and fliers want Internet connectivity, especially on long-haul flights. Global Eagle is one of the best opportunities that combines media, entertainment and technology for airlines.
tuna
Added ENT $9.51 +.10 on this bullish article out today comparing it to flyer GOGO:
Forget Gogo: This Cheaper Stock Offers 60% Upside
StreetAuthority NetworkBy Marshall Hargrave | StreetAuthority Network – 9 hours ago..
GOGO 17.51 +0.57
ENT 9.50 +0.0900
These days Wi-Fi has become a necessity, a part of our everyday lives that we just can't live without. That demand is now being seen in the friendly skies, as fliers prefer a Wi-Fi connection to amenities such as more legroom or better food.
Carriers are taking note, and one company that stands to benefit from this trend is Global Eagle Entertainment (Nasdaq: ENT).
Global Eagle provides airline passengers with Internet access, live television, video content, shopping and travel information. Its in-flight services have been installed on more than 500 aircraft, covering both land and sea. Through its subsidiary Advanced Inflight Alliance (AIA), Global Eagle provides film and television content, games and applications to more than 130 airlines worldwide.
Big Tailwinds
One of the big tailwinds for Global Eagle is that a Federal Aviation Administration panel just endorsed Wi-Fi as safe for all portions of flights. The panel's recommendations would lift the restrictions on the use of certain handheld devices below 10,000 feet. Only ground-based cellular connections for voice and data would be prohibited. Passengers would be allowed to access their email and the Internet during all phases of a flight, but only through the carrier's Wi-Fi system.
This would be give a distinct advantage to Global Eagle over the largest Wi-Fi provider, Gogo (Nasdaq: GOGO), which provides Wi-Fi services for roughly 75% of the commercial aircraft in the U.S. but relies on cellular towers for its services below 10,000 feet. Global Eagle's services are satellite-based and do not rely on cellular towers. The new recommendations would give a huge competitive advantage to Global Eagle because the FAA currently prohibits the use of Wi-Fi services below 10,000 feet.
Since StreetAuthority expert Andy Obermueller wrote about Gogo a couple of months ago, GOGO is up over 60%. Global Entertainment has the potential to reward shareholders just as nicely.
The market for Global Eagle's services is expected to grow from roughly $700 million last year to an estimated $2.1 billion by 2017. Expected to drive that growth is the rise of international carriers from market leaders Boeing (NYSE: BA) and Airbus, particularly in China. Global Eagle gets 60% of its revenue internationally and only 40% from the U.S. -- but while the U.S. in-flight connectivity penetration rate is 43%, the international penetration rate is only 4%, making the international market the biggest opportunity for Global Eagle.
As a result, analysts expect Global Eagle to post revenue of $263 million for this year and $340 million next year. Earnings are expected to rise from a loss of $1.05 a share this year to a profit of $0.66 a share next year.
Diverse Revenue Streams, Strong Management
Global Eagle has multiple revenue sources. In the second quarter, its largest revenue source was the sale or licensing of content, video and music programming, applications and video games, good for $38 million. Next were Wi-Fi, TV, Video on Demand, shopping and travel-related applications at $12 million. Third was the sale of satellite-based connectivity equipment at $6.4 million. Finally, Global Eagle brought in $5.7 million for technical services such as encoding and editing of media content.
Formed by former MGM CEO Harry Sloan and CBS Entertainment President Jeff Sagansky earlier this year, Global Eagle has a strong management team, which has been helpful in securing content and gaining licenses for TV and film distribution. The company is the exclusive distributor for Lionsgate/Summit Entertainment content, and it has secured Asian, Bollywood, European and Middle Eastern content for its in-flight entertainment offerings.
One of Global Eagle's most exciting initiatives is the launch of its new portal, which it's calling Portal 2.0. This new portal offers improved advertising features. The company has a captive audience with the passengers stuck in their seats, which it can leverage by hitting them with targeted advertising. There's no TiVo on board, so passengers can't skip ads -- and Global Eagle gets to collect the advertising dollars from targeted ads.
Global Eagle's closest comparison is Gogo, which trades at a price-to-sales ratio of 5.3 and a price-to-book ratio of 4.7, compared with Global Eagle at 3.7 and 2.6, respectively. Global Eagle is expected to be profitable next year, while Gogo is not. Global Eagle has the stronger balance sheet, with only $8 million in debt, while Gogo has $245 million. Which raises the question: Why is Gogo worth three times Global Eagle in terms of market cap?
Risks to Consider: The biggest risk for Global Eagle is that satellite providers partner with the airlines and offer their own Wi-Fi and content packages. Over time, expect additional competitors to emerge, but right now Global Eagle has a very strong position in the market.
Action to Take --> Buy Global Eagle for upside to $15. The airline industry is growing rapidly, and fliers want Internet connectivity, especially on long-haul flights. Global Eagle is one of the best opportunities that combines media, entertainment and technology for airlines.
tuna
Watch ENT $9.51 +.10 on this bullish article out today comparing it to flyer GOGO:
Forget Gogo: This Cheaper Stock Offers 60% Upside
StreetAuthority NetworkBy Marshall Hargrave | StreetAuthority Network – 9 hours ago..
GOGO 17.51 +0.57
ENT 9.50 +0.0900
These days Wi-Fi has become a necessity, a part of our everyday lives that we just can't live without. That demand is now being seen in the friendly skies, as fliers prefer a Wi-Fi connection to amenities such as more legroom or better food.
Carriers are taking note, and one company that stands to benefit from this trend is Global Eagle Entertainment (Nasdaq: ENT).
Global Eagle provides airline passengers with Internet access, live television, video content, shopping and travel information. Its in-flight services have been installed on more than 500 aircraft, covering both land and sea. Through its subsidiary Advanced Inflight Alliance (AIA), Global Eagle provides film and television content, games and applications to more than 130 airlines worldwide.
Big Tailwinds
One of the big tailwinds for Global Eagle is that a Federal Aviation Administration panel just endorsed Wi-Fi as safe for all portions of flights. The panel's recommendations would lift the restrictions on the use of certain handheld devices below 10,000 feet. Only ground-based cellular connections for voice and data would be prohibited. Passengers would be allowed to access their email and the Internet during all phases of a flight, but only through the carrier's Wi-Fi system.
This would be give a distinct advantage to Global Eagle over the largest Wi-Fi provider, Gogo (Nasdaq: GOGO), which provides Wi-Fi services for roughly 75% of the commercial aircraft in the U.S. but relies on cellular towers for its services below 10,000 feet. Global Eagle's services are satellite-based and do not rely on cellular towers. The new recommendations would give a huge competitive advantage to Global Eagle because the FAA currently prohibits the use of Wi-Fi services below 10,000 feet.
Since StreetAuthority expert Andy Obermueller wrote about Gogo a couple of months ago, GOGO is up over 60%. Global Entertainment has the potential to reward shareholders just as nicely.
The market for Global Eagle's services is expected to grow from roughly $700 million last year to an estimated $2.1 billion by 2017. Expected to drive that growth is the rise of international carriers from market leaders Boeing (NYSE: BA) and Airbus, particularly in China. Global Eagle gets 60% of its revenue internationally and only 40% from the U.S. -- but while the U.S. in-flight connectivity penetration rate is 43%, the international penetration rate is only 4%, making the international market the biggest opportunity for Global Eagle.
As a result, analysts expect Global Eagle to post revenue of $263 million for this year and $340 million next year. Earnings are expected to rise from a loss of $1.05 a share this year to a profit of $0.66 a share next year.
Diverse Revenue Streams, Strong Management
Global Eagle has multiple revenue sources. In the second quarter, its largest revenue source was the sale or licensing of content, video and music programming, applications and video games, good for $38 million. Next were Wi-Fi, TV, Video on Demand, shopping and travel-related applications at $12 million. Third was the sale of satellite-based connectivity equipment at $6.4 million. Finally, Global Eagle brought in $5.7 million for technical services such as encoding and editing of media content.
Formed by former MGM CEO Harry Sloan and CBS Entertainment President Jeff Sagansky earlier this year, Global Eagle has a strong management team, which has been helpful in securing content and gaining licenses for TV and film distribution. The company is the exclusive distributor for Lionsgate/Summit Entertainment content, and it has secured Asian, Bollywood, European and Middle Eastern content for its in-flight entertainment offerings.
One of Global Eagle's most exciting initiatives is the launch of its new portal, which it's calling Portal 2.0. This new portal offers improved advertising features. The company has a captive audience with the passengers stuck in their seats, which it can leverage by hitting them with targeted advertising. There's no TiVo on board, so passengers can't skip ads -- and Global Eagle gets to collect the advertising dollars from targeted ads.
Global Eagle's closest comparison is Gogo, which trades at a price-to-sales ratio of 5.3 and a price-to-book ratio of 4.7, compared with Global Eagle at 3.7 and 2.6, respectively. Global Eagle is expected to be profitable next year, while Gogo is not. Global Eagle has the stronger balance sheet, with only $8 million in debt, while Gogo has $245 million. Which raises the question: Why is Gogo worth three times Global Eagle in terms of market cap?
Risks to Consider: The biggest risk for Global Eagle is that satellite providers partner with the airlines and offer their own Wi-Fi and content packages. Over time, expect additional competitors to emerge, but right now Global Eagle has a very strong position in the market.
Action to Take --> Buy Global Eagle for upside to $15. The airline industry is growing rapidly, and fliers want Internet connectivity, especially on long-haul flights. Global Eagle is one of the best opportunities that combines media, entertainment and technology for airlines.
tuna
Watch ENT $9.51 +.10 on this bullish article out today comparing it to flyer GOGO:..
Forget Gogo: This Cheaper Stock Offers 60% Upside
StreetAuthority NetworkBy Marshall Hargrave | StreetAuthority Network – 9 hours ago..
GOGO 17.51 +0.57
ENT 9.50 +0.0900
These days Wi-Fi has become a necessity, a part of our everyday lives that we just can't live without. That demand is now being seen in the friendly skies, as fliers prefer a Wi-Fi connection to amenities such as more legroom or better food.
Carriers are taking note, and one company that stands to benefit from this trend is Global Eagle Entertainment (Nasdaq: ENT).
Global Eagle provides airline passengers with Internet access, live television, video content, shopping and travel information. Its in-flight services have been installed on more than 500 aircraft, covering both land and sea. Through its subsidiary Advanced Inflight Alliance (AIA), Global Eagle provides film and television content, games and applications to more than 130 airlines worldwide.
Big Tailwinds
One of the big tailwinds for Global Eagle is that a Federal Aviation Administration panel just endorsed Wi-Fi as safe for all portions of flights. The panel's recommendations would lift the restrictions on the use of certain handheld devices below 10,000 feet. Only ground-based cellular connections for voice and data would be prohibited. Passengers would be allowed to access their email and the Internet during all phases of a flight, but only through the carrier's Wi-Fi system.
This would be give a distinct advantage to Global Eagle over the largest Wi-Fi provider, Gogo (Nasdaq: GOGO), which provides Wi-Fi services for roughly 75% of the commercial aircraft in the U.S. but relies on cellular towers for its services below 10,000 feet. Global Eagle's services are satellite-based and do not rely on cellular towers. The new recommendations would give a huge competitive advantage to Global Eagle because the FAA currently prohibits the use of Wi-Fi services below 10,000 feet.
Since StreetAuthority expert Andy Obermueller wrote about Gogo a couple of months ago, GOGO is up over 60%. Global Entertainment has the potential to reward shareholders just as nicely.
The market for Global Eagle's services is expected to grow from roughly $700 million last year to an estimated $2.1 billion by 2017. Expected to drive that growth is the rise of international carriers from market leaders Boeing (NYSE: BA) and Airbus, particularly in China. Global Eagle gets 60% of its revenue internationally and only 40% from the U.S. -- but while the U.S. in-flight connectivity penetration rate is 43%, the international penetration rate is only 4%, making the international market the biggest opportunity for Global Eagle.
As a result, analysts expect Global Eagle to post revenue of $263 million for this year and $340 million next year. Earnings are expected to rise from a loss of $1.05 a share this year to a profit of $0.66 a share next year.
Diverse Revenue Streams, Strong Management
Global Eagle has multiple revenue sources. In the second quarter, its largest revenue source was the sale or licensing of content, video and music programming, applications and video games, good for $38 million. Next were Wi-Fi, TV, Video on Demand, shopping and travel-related applications at $12 million. Third was the sale of satellite-based connectivity equipment at $6.4 million. Finally, Global Eagle brought in $5.7 million for technical services such as encoding and editing of media content.
Formed by former MGM CEO Harry Sloan and CBS Entertainment President Jeff Sagansky earlier this year, Global Eagle has a strong management team, which has been helpful in securing content and gaining licenses for TV and film distribution. The company is the exclusive distributor for Lionsgate/Summit Entertainment content, and it has secured Asian, Bollywood, European and Middle Eastern content for its in-flight entertainment offerings.
One of Global Eagle's most exciting initiatives is the launch of its new portal, which it's calling Portal 2.0. This new portal offers improved advertising features. The company has a captive audience with the passengers stuck in their seats, which it can leverage by hitting them with targeted advertising. There's no TiVo on board, so passengers can't skip ads -- and Global Eagle gets to collect the advertising dollars from targeted ads.
Global Eagle's closest comparison is Gogo, which trades at a price-to-sales ratio of 5.3 and a price-to-book ratio of 4.7, compared with Global Eagle at 3.7 and 2.6, respectively. Global Eagle is expected to be profitable next year, while Gogo is not. Global Eagle has the stronger balance sheet, with only $8 million in debt, while Gogo has $245 million. Which raises the question: Why is Gogo worth three times Global Eagle in terms of market cap?
Risks to Consider: The biggest risk for Global Eagle is that satellite providers partner with the airlines and offer their own Wi-Fi and content packages. Over time, expect additional competitors to emerge, but right now Global Eagle has a very strong position in the market.
Action to Take --> Buy Global Eagle for upside to $15. The airline industry is growing rapidly, and fliers want Internet connectivity, especially on long-haul flights. Global Eagle is one of the best opportunities that combines media, entertainment and technology for airlines.
tuna
Thanks....yes I think ENT is going to be a good trade...sorry I missed on 2 different occasions to get GOGO on limit orders over the last several weeks and would have made decent money on both if I'd not been so stingy on my bid....ugh! I'll feel a lot better if this one also makes a nice pop over the next couple of weeks or so...tuna