SwingTrade Member Forum

[MikeDDKing]

ALIF 1/16/09 update....

ALIF is a mobile software producer (primarily games) that is growing like a weed and is my favorite stocks. It very realistically could and likely will be a 5-10 bagger from present prices over the next 12 months. They made $0.07/share last quarter and are guiding for further growth in the fourth quarter. They are embarking on a huge rollout of iPhone games that should propel earnings much higher and could make them a wallstreet darling. The stock last traded at $0.95/share so they are trading at less than four times annualized Q3 earnings which makes them a bargain at current prices IMO.

Sample Cell Phone Games



Investment Thesis (see links for supporting details)
1. Explosive Revenue & Earnings Growth - The company has rapidly grown revenue and earnings over the past several quarters. Q3'08 revenue grew 311% over Q3'07 and the growth was organic! Their Q3 diluted EPS was $0.07 and they are guiding for growth to continue. "Despite the current global market turmoil we have been able to perform well and deliver the best quarter results in our history. The strategy of becoming a full service mobile application provider and expanding carefully is working out well and has again generated positive results. We expect further growth for the remainder of the year,' said Eberhard Schoneburg, CEO of Artificial Life, Inc.
2. Recent Launch of Many New Games Will Drive Revenue and Earnings Growth - There has been a massive release of new games in recent months that has yet to have the full impact to the bottom line. Games released since June include: Bustin' Balls (6/24/08), Braveheart (7/7/08), FC Bayern Munchen (9/8/08), Leo Messi - GOAL! (9/17/08), Klitschko Boxing - The Official Mobile Game (9/24/08), and Amateur Surgeon (~12/17/08).
3. Expansion into iPhone, Android, and Business Applications - Artificial Life has planned a huge expansion into the iPhone and Android platforms as well as expanding into business applications. They have recently released Amateur Surgeon for the iPhone which has been a top selling game. They have a massive expansion of at least 16 new products (mainly iPhone games) planned for release in 2009. Apple sold one third of U.S. Smartphones so this expansion gives them a huge increase in market coverage. http://investorshub.advfn.com/boards/read_msg.aspx?Message_id=34016087 Here is a list of products planned for a 2009 release. http://investorshub.advfn.com/boards/replies.aspx?msg=34633447
4. Additional Expansion Opportunities - They also have some growth planned outside of the gaming area including further growth of their SMS Galaxy offering and the business applications described above. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34023168
5. Rapidly Growing Industry - Gaming for cell phones is growing rapidly. It was $3B in 2006 and is forcasted to be $10.5B in 2009 and 17.5B by 2011. This is a huge industry to service. http://investorshub.advfn.com/boards/read_msg.asp?message_id=29368476
6. Relationships with Big Names - They have relationships with major media companies such as Warner Brothers, Paramount Digital Entertainment, Cartoon Network, and Oxygen. In these relationships they are making or made products based upon the company's films or TV shows (e.g. Braveheart). They also have relationships with famous people such as Soccer Star Leo Messi, Vitali and Wladimir Kitschko, and the Tokio Hotel band to make games based upon their images and likeness.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29368238
http://www.artificial-life.com/alife/index.php?cat=ir&sub=4&list=0&t=en
7. Credibility as a Huge Force in Mobile Media - Artificial Life has been written up in many articles and has won several awards which gives them credibility as a huge force in the mobile media market. http://investorshub.advfn.com/boards/read_msg.asp?message_id=29377148
8. High PE Industry - Stocks in rapidly growing industries like this typically attract high PEs. Right now, however, the PE is low.

More ALIF DD can be found here:
http://investorshub.advfn.com/boards/board.aspx?board_id=12627

Mike