Though SA author John Deamer was once quite bearish on Majesco (COOL) amid plunging sales and solvency concerns, he now thinks the company's real-money gambling efforts spell a favorable risk/reward.
Deamer notes CEO Jesse Sutton emphasized Majesco's real-money partnerships during earnings CCs, and expects revenue to grow as gambling giant Intralot (IRLTF) expands into more states. Majesco's GMS Pariplay JV was chosen by Intralot to provide gambling titles in several states.
He adds Pariplay also has partnerships with Atari (previous), the Isle of Man's Trada Casino, and online casino WinTingo, and that Majesco's Midnight City indie publishing label has multiple games on tap.
At the same time, Deamer cautions Majesco (current market cap of $16M) "has no meaningful games being released until October" via Midnight City, and that liquidity and Nasdaq de-listing concerns remain.
Atari is partnering with Majesco (COOL +10.5%) JV company Pariplay to bring its video games "across real money gambling formats, including iLottery, social, online and mobile platforms."
As part of the deal, Atari's real-money gambling site will feature classic Atari games such as Pong, Asteroids, and Centipede starting in Q4, and Pariplay will distribute Atari titles throughout its network.
Majesco, beset by solvency concerns, closed yesterday near its 52-week low of $0.37.
More on Majesco: Sales weakness is once more blamed on soft demand for Wii titles, including the Zumba Fitness franchise. FY13 (ends in October) revenue is expected to be "significantly below" FY12 levels; no guidance is given beyond that. The Street is already expecting a 41% drop. Opex fell 41% Y/Y thanks to restructuring moves. COOL-20.8% AH to $0.57. The company's market cap now stands at just $23M, below its quarter-ending cash balance of $26.7M. Are we looking at another THQ? (PR)
: Save it, print it, read it daily. Thanks for the photo....
Jun 13, 1:01 PM
Arnster+ FollowFollowing- Unfollow|Send Message13 Jun
Jun 13, 3:56 PM
thesuer+ FollowFollowing- Unfollow|Send Message11 Jun
$COOL 1 for 7 reverse stock split announced.....lets see how long they take to bring it under, dig a hole, shallow grave, murder oneself.
Jun 11, 8:08 AM
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thesuer+ FollowFollowing- Unfollow|Send Message12 Jun
: its a long way to picadally and also hope that 3 is reached soon!
Jun 12, 11:51 AM
Arnster+ FollowFollowing- Unfollow|Send Message12 Jun
: do you believe that they will be able to make it to $3 / share? i'm having a lot of doubts. they barely can get .10 back let alone reaches 3
Jun 12, 12:36 PM
thesuer+ FollowFollowing- Unfollow|Send Message10 Jun
seriously guy they are dead and so is our money! Please some one just buy them before they seek bankkruptcy protection! $COOL
Jun 10, 6:01 AM
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Arnster+ FollowFollowing- Unfollow|Send Message10 Jun
: going to wait 1 more quarter
Jun 10, 4:23 PM
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Majesco Entertainment Co is a provider of interactive entertainment software mainly for the casual game playing, mass-market consumer. It sells its products mainly to large retail chains, specialty retail stores, video game rental outlets.