Sprott's Peter Hodson Likes Gravity

Well-regarded fund manager Peter Hodson of Sprott Asset Management presented a compelling investment case for Gravity Co. (GRVY) in an interview with Canada's Business News Network on August 6th. Hodson's argument is in line with the thesis presented in a recent issue of Downside Protection Report.

Gravity is a Korean software company, developing massively multiplayer online role-playing games ((MMORPG)). Despite the company's recent profitability inflection point, the shares continue to trade roughly in line with net cash and investments. While the shares have appreciated considerably this year, they remain undervalued and still trade at a price that is lower than two years ago. Gravity's valuation compares favorably to public companies such as Shanda Interactive Entertainment (SNDA), Giant Interactive Group (GA), NetEase.com (NTES), Perfect World (PWRD), and The9 Limited (NCTY).

Disclosure: Long GRVY, no position in SNDA, GA, NTES, PWRD, NCTY.

Comments

[theonlyteacher:]

i like grvy i own it since 1.10

what do you think about SGZH.OB, why no one write about it.
report 2nd q of 83 c and 1.58 for 1st half 2009

trading at 7 now

Aug 16 02:42 AM

[FIFOkid:]

I happen to think the risk/reward for GRVY is also excellent.

Aug 16 08:08 AM

[D Ballotti:]

Gravity has a dynamic chart. There is some resistance around 6 and again at 10.

Aug 21 09:36 AM

[Kisei:]

Still like Gravity after yesterday's earning report? Hard to see what is happening to subscriber numbers

Aug 28 02:26 AM

[ilovesum:]

dear small investor: look into my eyes you will not use your common cents and listen to everything I say . do not consider me a pumper even though i look like one and act like one.
sprott went public at the peak of the market now one of their guys is pumping stock again , even though eric sprott and j f tardiff have a dismal , horrific , view of the market for the next several years , so much so that tardiff took his money and quit as an investor ,see
www.kingworldnews.com/...

as brad pitt said in the mexican , your telling me to do 2 different things , which ONE is it ?
either the market is good or its bad , it can't be both

i always wondered why these guys come on the shows or media , its simple ,, to pump and dump

his nickname should be peter the pumper

Sep 02 11:18 PM

[FIFOkid:]

I tend to agree Sprott does pump and dump small caps. Timminco was his biggest pump from a penny stock into a mid $30 stock of which the company was really nothing. However, I will admit this stock even at its high of $2.62 is undervalued given the free cash on the balance sheet of $2.05/share and its peer group trades at 20 times earnings.

One comment on the last earnings report is the numbers were considerably an improvement from last year's comparable quarter. I will accept the CEOs seasonality reason for the lower earnings number in comparison to the prior quarter.

Sep 03 06:16 PM