Comments on: The Apple App Store Ecosystem and Glu Mobile – Part 2 http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/ Tue, 03 Jan 2012 14:45:43 +0000 http://wordpress.org/?v=abc hourly 1 By: Asif http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-605 Asif Sun, 25 Apr 2010 18:26:53 +0000 http://www.sinletter.com/?p=958#comment-605 Thanks Kartick. It was a risky play that has worked out well so far. We will have to see if it continues to deliver or not. Regarding the transaction on Apr 23rd, someone has to sell for someone else to buy, but given the price movement, it looks like the buyer was motivated. Thanks Kartick. It was a risky play that has worked out well so far. We will have to see if it continues to deliver or not.

Regarding the transaction on Apr 23rd, someone has to sell for someone else to buy, but given the price movement, it looks like the buyer was motivated.

]]> By: Kartick Narayan http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-594 Kartick Narayan Sat, 24 Apr 2010 20:16:30 +0000 http://www.sinletter.com/?p=958#comment-594 Hey Asif, Congrats on calling this. Looks like the last trasaction from Apr 23rd was for 1MM shares @ $1.426. Was this a buy or a sell? Kartick Hey Asif,
Congrats on calling this.

Looks like the last trasaction from Apr 23rd was for 1MM shares @ $1.426. Was this a buy or a sell?

Kartick

]]> By: robert http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-510 robert Mon, 12 Apr 2010 17:03:43 +0000 http://www.sinletter.com/?p=958#comment-510 Hi. Agree with your perspective on the positive and negative case for Glu. On the debit side the balance sheet is even weaker than it looks as the company still has to meet a lumpy deferred acquisition payment of $12m (which pushes up the EV to trailing revenues ratio to more like 0.7x (price $1.30). You can still see the potential though as the quoted mobile gaming co's like Gamevil, Com2us and Gameloft trade in the 2x to 6x trailing revenue range. If the management can begin to execute, refinancing from exisiting shareholders on those ratios doesn't seem so scary.One feature I like about the company is that it is still spending on R&D, including the deferred consideration the EV is only just over 2x the $25m they identify as R&D spend in 2009. Hi. Agree with your perspective on the positive and negative case for Glu. On the debit side the balance sheet is even weaker than it looks as the company still has to meet a lumpy deferred acquisition payment of $12m (which pushes up the EV to trailing revenues ratio to more like 0.7x (price $1.30). You can still see the potential though as the quoted mobile gaming co’s like Gamevil, Com2us and Gameloft trade in the 2x to 6x trailing revenue range. If the management can begin to execute, refinancing from exisiting shareholders on those ratios doesn’t seem so scary.One feature I like about the company is that it is still spending on R&D, including the deferred consideration the EV is only just over 2x the $25m they identify as R&D spend in 2009.

]]> By: Asif http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-506 Asif Mon, 12 Apr 2010 06:01:08 +0000 http://www.sinletter.com/?p=958#comment-506 George, Glu Mobile released one of the recent games Glyder 2 for the iPad as soon as it came out and priced it at $4.99 when compared to $2.99 for the iPhone version. I am assuming they will repackage some of their other games and especially their in-house IP like "Super KO Boxing 2" and "1000: Find Em All" for the iPad as well. I have reached out to their management team and will most likely get a chance to talk to them after the quite period related to Q1 results is over. If I do, I will ask them more about their iPad plans. George, Glu Mobile released one of the recent games Glyder 2 for the iPad as soon as it came out and priced it at $4.99 when compared to $2.99 for the iPhone version.

I am assuming they will repackage some of their other games and especially their in-house IP like “Super KO Boxing 2″ and “1000: Find Em All” for the iPad as well.

I have reached out to their management team and will most likely get a chance to talk to them after the quite period related to Q1 results is over. If I do, I will ask them more about their iPad plans.

]]> By: george gillespie http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-503 george gillespie Sun, 11 Apr 2010 10:20:50 +0000 http://www.sinletter.com/?p=958#comment-503 Asif I am really interested in what Gluu has planned for the iPad. i think the future of big gaming dollars is tied up in this device and the other OEM's that are sure to follow Apple's lead. Do you have any insight to Gluu's plans in this area? George Asif

I am really interested in what Gluu has planned for the iPad. i think the future of big gaming dollars is tied up in this device and the other OEM’s that are sure to follow Apple’s lead. Do you have any insight to Gluu’s plans in this area?
George

]]> By: 3 small stocks that could see a boost from Apple’s iPad (GLUU, ALIF.OB, TSCM) | Microcap Speculator — microcapspeculator.net http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-497 3 small stocks that could see a boost from Apple’s iPad (GLUU, ALIF.OB, TSCM) | Microcap Speculator — microcapspeculator.net Fri, 09 Apr 2010 06:26:59 +0000 http://www.sinletter.com/?p=958#comment-497 [...] to Asif Suria on this one.  His two-part series on Glu Mobile and the Apple App Store (part 2 here) shows why microcap mobile game developer Glu Mobile has a lot of upside.  Glu has 38 games in [...] [...] to Asif Suria on this one.  His two-part series on Glu Mobile and the Apple App Store (part 2 here) shows why microcap mobile game developer Glu Mobile has a lot of upside.  Glu has 38 games in [...]

]]> By: Asif http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-482 Asif Mon, 05 Apr 2010 08:29:07 +0000 http://www.sinletter.com/?p=958#comment-482 Dave, a few things stood out from reviewing their 10-K including the fact that they have already started experimenting with social media games with 2 beta games and one live game on Facebook. They are also following all three revenue models as they apply to the iPhone app store including game purchases, in game microtransactions and advertising. The part that stood out the most was that revenue from smartphone platforms grew 248.1% in 2009 as compared to 2008, and grew by 98% in Q4 2009 as compared to Q3 2009 . So there is definitely opportunity there but it is also a highly competitive space unlike their traditional business of games for feature phones through the service provider. I get the feeling that to fully implement both their social media strategy and the smartphone strategy (not to mention the iPad now), they may have to raise additional capital. The good thing is that they have been profitable on an operational basis for the last three quarters. If possible I will post something more comprehensive on the blog later this week. Dave, a few things stood out from reviewing their 10-K including the fact that they have already started experimenting with social media games with 2 beta games and one live game on Facebook. They are also following all three revenue models as they apply to the iPhone app store including game purchases, in game microtransactions and advertising.

The part that stood out the most was that revenue from smartphone platforms grew 248.1% in 2009 as compared to 2008, and grew by 98% in Q4 2009 as compared to Q3 2009 . So there is definitely opportunity there but it is also a highly competitive space unlike their traditional business of games for feature phones through the service provider.

I get the feeling that to fully implement both their social media strategy and the smartphone strategy (not to mention the iPad now), they may have to raise additional capital. The good thing is that they have been profitable on an operational basis for the last three quarters.

If possible I will post something more comprehensive on the blog later this week.

]]> By: Asif http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-462 Asif Fri, 02 Apr 2010 17:00:23 +0000 http://www.sinletter.com/?p=958#comment-462 Sure Dave. Will post my comments about it this weekend. Sure Dave. Will post my comments about it this weekend.

]]> By: Dave http://www.sinletter.com/2010/03/the-apple-app-store-ecosystem-and-glu-mobile-part-2/comment-page-1/#comment-456 Dave Thu, 01 Apr 2010 14:26:31 +0000 http://www.sinletter.com/?p=958#comment-456 Asif, Recently GLUU came out with their 10-K. Based on your research and thought process, could you shed some light on their situation? Thanks, Dave Asif,

Recently GLUU came out with their 10-K. Based on your research and thought process, could you shed some light on their situation?

Thanks,
Dave

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