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Dr. Kris hails from the land o' lakes, beer, bratwurst, and Bucky Badger. She traded in her cheese hat for a propeller beanie and has never looked back. She has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her... More
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  • Trade Of The Day: Gravity Corp ($GRVY) 0 comments
    Feb 16, 2012 2:12 PM | about stocks: GRVY

    Gravity ($GRVY) is a Korean-based maker of computer games. Requiem was its biggest hit and the company is planning on releasing a sequel to that very soon. Anticipation of this offering is sending up the share price--+13% just today! According to a tantalizing article on Seeking Alpha, the company is trading under its $3.42 book value, has very little debt, and is in a high-margin business. The author makes a compelling case for further upside, targeting $3 as a conservative value and $5.00 as a normal value (compared with its industry peers). The company is also saying that it's planning on partnering with Facebook which can't hurt the bottom line.

    With the stock trading around $2.70, the above targets make for a tempting short-term play. The open beta release of its new game is expected next week (Feb. 22) making this a good time target for all of you swing traders. Note that this is a play based partly on valuation projections and momentum thus making it more of a trade rather than a long-term investment and this is the way I'll be treating it. Note that the company does not pay a dividend nor are there any options. An appropriate stop/loss would be around yesterday's close near $2.40.

    Disclosure: I took a long position in the stock today.

    Disclosure: I am long GRVY.

    Stocks: GRVY
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