From Sparky: Tuesday 03/16/04 12:43am cst
Dear Fellow HSM Members,
TIGR - Please Do Take A Look
Tiger Telematics (TIGR) is the company behind Gametrac, a futuristic feature-packed mobile gaming device that’s about to compete directly against Sony’s PSP and Nintendo’s DS.
In additional to being a exceptional gaming device, Gametrac also performs the following functions: It serves as a movie player, allowing users to view full-length videos using the unit’s built-in SD Card slot; it functions as an MP3 player permitting users to download, store, and listen to desired audio files; it’s an SMS & MMS messaging facility which enables users to send text, image, and music files; and it sports a high-resolution digital camera.
Gametrac is also equipped with a unique global positioning system; it supports Bluetooth wireless capabilities, which allows not only multi-player competition, but also makes connecting to any enabled device a snap; it has UBS capabilities; and with its removable memory cards, users are afforded unlimited storage.
In addition to having more features than competing units, Gametrac’s also equipped with a 400 Mhz processor and a built-in 64-bit graphics accelerator and, it’s the only mobile gaming unit that employs Microsoft Windows (CE.NET) as its operating system.
For the above reasons, and they really truly are good ones, Sparky’s convinced that in terms of unit sales Gametrac’s about to capture a much bigger slice of this burgeoning mobile gaming market than even the most optimistic observers might have expected.
The biggest single factor Sparky’s thinks will make this prediction a reality is the widespread popularity and ease of use of Windows as an operating system. In Sparky’s opinion, the general public worldwide has no clue how accustomed they’ve truly become to Windows.
From Gametrac’s vantage point, its use of Windows is bound to create a demand-pull situation of historical proportions. And on Microsoft’s side, Gametrac’s about to become it’s primary entry vehicle into this exploding and sure-to-be-profitable mobile gaming market.
A secondary factor that’s keeping Sparky focused on market share in general and unit sales in particular is Sony’s recent announcement that it’s PSP launch has been delayed until after March 31st, 2005. The market-share ramifications of this delay are huge! And if Nintendo delays its scheduled year-end launch of the DS, as Sparky expects they will within months, then Gametrac will clearly stand a good chance of becoming an instant industry leader.
And let’s not forget all the after-sale revenues soon to be associated with Gametrac. Specifically, TIGR will receive a share of all related monthly service plan fees and Smart Adds sales, it has lucrative game sales to look forward to, and eventually all those movie sales. The effect that higher units sales will have on these after-sale revenues is so very exciting it’s recently been keeping Sparky awake nights!
Now as if all the above items weren’t enough reason to conclude that TIGR share prices belong way, way over a dollar, Sparky urges his respected Readers to consider briefly the impressive downside protection that these TIGR shares currently offer.
Beginning with the 50 cent level, kindly note that from 02/25/2004, the first day TIGR shares traded over 50 cents, until 03/05/2004, the first day they again traded below 50 cents, more than 12 million shares changed hands, over a third of the company’s entire trading float!
And since 02/24/2004, the first day TIGR share prices exceeded 45 cents; almost 19 million shares have changed hands, over 50% of the whole trading float!
One final observation, and this too has potentially stabilizing implications; is that those buying TIGR shares at prices over 45 cents seem to have much longer-term and far-less-volatile objectives. In contrast, many of those who invested in TIGR shares at lower prices, particularly those who traded shares below 20 cents, were sheer speculators.
For these reasons, the rotation we’ve seen in TIGR’s shareholder base over the past month has been not only significant, but also desirably constructive.
So despite poor conditions throughout all equity markets recently, and in spite of some serious selling pressures during recent sessions, TIGR shares have held up exceptionally well.
Looking immediately ahead, Sparky’s convinced prices are about to explode and that TIGR shares are an excellent purchase anywhere near current levels.
Sincerely,
Sparky
