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
