Seeking Alpha

Dr. Kris'  Instablog

Dr. Kris
Send Message
Dr. Kris 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 satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
My company:
Stock Market Cook Book
My blog:
Stock Market Cook Book
  • 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.

    Themes: swing trade, computer games Stocks: GRVY
Back To Dr. Kris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Beach. Posh private club. Patio cabana. What's wrong with this picture? YOU! Not being there! Talkin' mkts: http://bit.ly/1xmAJUO
    1 day ago
  • CyberSecurity etf $HACK gapping above 2 mo resistance, +2.3% on 2x vol. Not sure if this is a good or a bad thing...
    6 days ago
  • $IMMU shares resume trading after being halted via circuit breaker, plunging from $4.25 to $3.72 in 3 min. Of course I own this stock!
    Apr 20, 2015
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.