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MikeDDKing

02/04/09 3:07 PM

#21589 RE: john302 #21576

ALIF and DPDW are not even remotely similar from a valuation point of view.

ALIF made $0.07/share last quarter and is guiding for increased earnings going forward. Also, they are rolling out a number of iPhone games and their first title was a hot game. If you annualize Q3 earnings they are trading at less than a PE of 6.

DPDW only turned a profit in one quarter last year and that was only for an EPS of a bit under $0.01/share. At the peak they traded at $1.22/share. Generously annualizing $0.01/share would give them an annualized PE of 30 at $1.22/share. That is five times that of ALIF! Furthermore, DPDW was a stock that ran in the oil bubble. I don't think we have a cell phone game bubble going on right now.

DPDW disappointed because it's earnings were low relative to it's share price. At present, ALIF's share price is very low relative to it's earnings and they are guiding for increased earnings.

Having said that, I agree that one needs to remember to take profits when appropriate. However, IMO ALIF is still waaaaaaay undervalued.