GRAVITY CO LTD SPONSORED ADR (GRVY)

[lady glueck]

absolutely. aside that and many other positive things I also like that opportunity:

Gravity Co., Ltd (GRVY)
Gravity Co., a Korean Company trading through ADSs representing ¼ of a share, has a market capitalization of $40.31 million, and is trading at a TTM P/E of 6.04, but earnings are expected to decline. GRVY has a low Price/Book of 0.49. The ROE is 8.57%.

The stock has been having a strong performance lately, being up 7.41% in just the last week. However, the stock is still down by -15.20% from the start of 2011.

GRVY is interesting as a takeover candidate for several reasons. First, it trades at a very low Price/Book, and most importantly, it even trades below the cash it has in its balance sheet. This is particularly important because the company is profitable and growing, albeit not much. Also, GRVY is established in an attractive market segment, online massive multiplayer gaming, drawing the kind of subscription revenues that are also very attractive. It is thus attractive both from a strictly financial perspective, as well as a strategic perspective for other gaming companies wanting to enter, or extend their presence, in the online gaming market segment.

A possible obstacle to this could be the 59% ownership by a single shareholder (GungHo Online), however this shareholder is levered and might be interested in selling if the opportunity presents itself.

READ FULL ARTICLE:
http://seekingalpha.com/article/317435-analyzing-6-potential-takeover-candidates