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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Harshu Vyas who wrote (74076)	10/27/2023 2:41:43 PM
From: Elroy	Respond to of 78523

Have you done the conversions between won to USD The GRVY earnings releases are in both Korean Won and USD. We don't have to do any conversions. I think GRVY generated $71m in USD in 2022 so 6x FCF. Cheap, sure, but I think I can find cheaper. Here's the Q2 2023 earnings release: https://finance.yahoo.com/news/gravity-reports-second-quarter-2023-101000979.html H1 2023 net income was US$62m. Market cap today is $425m. No debt, and cash is $337m. So the business (market cap - cash) is worth $88m. GRVY's business is worth $88m, even though GRVY had net income of $66m in the six months Jan to Jun 2023. That's an enterprise value to earnings BELOW 1x. ?? It don't make no sense!! there's some balance sheet strength in the cash but it will never find its way back to shareholders anyway. No dividend. I don't know if they're repurchasing shares but they're not investing either - low capex. A very strange situation. Maybe you ought to reach out to investor relations - what exactly are they up to? Some balance sheet strenght? 80% of the market cap is cash. That's a fortress! How do you know the cash will never find it's way back to shareholders? How do you know they won't declare a dividend some day? How do we know whether they might repurchase shares in the future? Low Cap Ex - they are a gaming software firm. Cap Ex is only software design tools, if that. Of course it's low. You've never heard of Ragnarok online? Ok. So? In SE Asia it's (based on GRVY's business) huge. facebook.com Here's Wiki on Ragnarok online - en.wikipedia.org Here's another web site - renewal.playragnarok.com Something is clearly going on. Kids in SE Asia are playing it. Anyways, it's a value stock with a great business (evidently, based on their amazing financials, which no US investor cares about) :-) If anyone can explain how $62m in net income in the first half of this year is worth only $88m, I'd love to read. I think GRVY is going to lauch some games in China next year, and if they are successful, well, I don't know what will happen to the stock? Maybe it will go down....