Glu Mobile: Prepare For Failure

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About: Glu Mobile Inc. (GLUU), Includes: DIS, TTWO, ZNGA
by: Stone Fox Capital
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Stone Fox Capital
Long/short equity, growth at reasonable price, research analyst, Deep Value
Summary

Glu Mobile is expected to launch a Disney game in Q1.

The stock is selling off as if the market knows the game is set to fail.

Even without the a revenue boost, the stock could trade at 3.0x EV/21 revenues for a stock target of $10.63.

My consensus investment thesis has been to buy Glu Mobile (GLUU) below $6 on any sell offs. The mobile-gaming stock often sells off due to failed new games offering a huge bargain to