maybe you have some insight into the company's long-term future that belies past performace.
Nope, not much in the way of super duper insights into their future outlook.
What is clear is that they have experience 4-5 (maybe more) years of doldrums, with their games plodding along, not growing, and barely breaking even. GRVY as long as I knew it was a cash play, $40m cash, no debt, $30m market cap, something like that.
In the past year they have released online games that are ... comparitively, a masive success. Revenues are up over 100% year on year, and most of the increase just falls to the bottom line.
Will the games continue to do well for a few years? I have no idea.
But at 1x or 2x annual earnings, it's a reasonable gamble. It's actually Growth at an Unreasonable Price, it's too cheap.
Lets see, $40m cash, $12m annualized net income (based on Q2 2017 results, which may go up or down in the future), and the current market cap (after yesterday's run) is $61m.
So the PE ex-cash is below 2.0x
It's definitely a value stock. More than half the market cap is pure cash. And they are profitable, and seem to be growing. It seems a good bet to me. The future outlook is 100% unknown, but the recent trend (Q2 is up pretty well over Q1) is great, and they seem to have a pipeline of upcoming new products to be launched based on their press release. What else could you want in a risky tech stock? |
