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Glu Mobile (GLUU +5.9%) rallies after SA contributor Kelvin M. analyzes the Q2 performance of...

Glu Mobile (GLUU +5.9%) rallies after SA contributor Kelvin M. analyzes the Q2 performance of Glu's games on App Store charts, and relies on the numbers to predict the company will beat revenue estimates when its reports on Aug. 6, albeit not by a huge amount. The author notes Glu's most popular title, Frontline Commando: D-Day, ranked well in App Store charts throughout Q2, and that Glu's games are faring well in China. At the same time, he cautions "there is no real indicator showing that Glu will have an exceptional quarter." The author is more upbeat about 2H, citing Glu's plans to publish six 3rd-party titles. (Chinese sales) (first publishing title)
Comments (4)
  • Archman Investor
    , contributor
    Comments (2351) | Send Message
     
    "Glu Mobile (GLUU +5.9%) rallies after SA contributor Kelvin M. analyzes the Q2 performance of Glu's games".

     

    No offense but.....bull!
    SA has really gotten crazy trying to promote their Pro articles or even their authors as market moving mavens. Especially some almost penny stock, which is meant for pure speculation and possible 100% loss of capital. Shame on SA.

     

    No offense to the author is intended however the author's own bio states:
    "I am an individual investor focusing on stocks with high growth potential"

     

    So some individual investor no one has ever heard of is moving stocks now??

     

    SA: Enough with the self promoted hype. Please.
    16 Jul 2013, 11:04 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    There's no hype here. There have been plenty of instances where a stock has rallied thanks to an article from an SA contributor. Particularly when the author brings some new research to the table. In this instance, the author's analysis of Q2 App Store rankings for Glu's games represented information investors may have been unaware of. Glu rallied over 10% earlier this month thanks to another well-researched SA column.

     

    http://bit.ly/12GNNhy

     

    Also, calling Glu an "almost penny stock" is questionable. The company has a market cap of $184M, and is expected to generate $85M in 2013 sales. A small cap, yes, but not a penny stock.
    16 Jul 2013, 11:14 AM Reply Like
  • Archman Investor
    , contributor
    Comments (2351) | Send Message
     
    Eric:
    Understood.
    However a 100 million dollar market cap company is tiny. Very tiny and is subject to hype, speculation, etc. Especially ones that trade under $5.
    You make a good case about the information the author presented however here is how these scenarios play out 95% of the time:
    The stock shoots higher, some unknowing reader buys in after the move higher only to lose 25% of their investment in the following days after the hype move up and sold by those who were able to get in earlier.

     

    Investors would be best served to pull up a chart of this stock since 2007 to best see what wealth destruction looks like. This stock is a gamblers paradise stock, nothing more.
    Wash, rinse, repeat. It happens over and over again and does nothing to help the small investor.

     

    While I understand that SA does have a motive to promote their authors and more importantly their SA "Pro" authors as market moving to generate revenue for the site, in the end, there will be a lot more losers than winners. Unfortunately the losers will be those small investors who do not know any better.
    16 Jul 2013, 11:32 AM Reply Like
  • Archman Investor
    , contributor
    Comments (2351) | Send Message
     
    Note on 7.17.13:

     

    The stock drops almost 5% today after yesterday's supposed good news.

     

    As mentioned in my previous comment: I can say with certainty that somewhere, some poor soul just lost money today on this speculative casino bet.

     

    Real long term wealth is rarely created this way unless you are a really good trader. 99% of all Americans are not.
    17 Jul 2013, 09:18 PM Reply Like
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