EmergingGrowth.com Reports on Majesco Entertainment, Emerging Growth Stock Pick.
Miami, FL - December 11, 2012 (www.investorideas.com newswire) EmergingGrowth.com, a leading digital financial media company, Reports on Majesco Entertainment (NASDAQ: COOL) Emerging Growth Stock Pick. Also discussed, Sony Corporation (NASDAQ: SNE) and Activision (NASDAQ: ATVI).
Feature your company on EmergingGrowth.com. Click here to find out how .
Video game sales for Sony Corporation's (NYSE: SNE) Playstation 3, Microsoft Corporation's Xbox and Nintendo Co.'s Wii have largely been in a downtrend for over a year now. As mobile gaming continues to advance on console gaming, many game developers are switching business models with a stronger emphasis on mobile games for iPads, iPhones, Android, etc.
However, console gaming could soon see a surging return as the "big three" console makers all have new systems in the works. In fact, Nintendo already has its next generation console out on the market, Wii U. To the surprise of many, Nintendo's main problem with the new gaming console is the fact that its supply cannot match the overwhelming demand. Additionally, this supply shortage has made several analysts make the thesis that demand could spill over for the Xbox 720 or even the current Xbox 360. What is the point? Video game developers may be a good long term investment.
One name that comes to mind is Majesco Entertainment Co. (NASDAQ: COOL). Fundamentally, Majesco has a market cap of $38 million and currently has a "hold" rating from analysts. The company has a price to earnings of 11 and a forward price to earnings of 3.37. Valuation wise, Majesco has a PEG of 0.76, price to sales of 0.29, price to book of 1.2, price to cash of 1.4 and price to free cash flow of 5. The small cap game developer has zero debt and is forecasted to see earnings jump 29% next year and 15% the next five years. The stock is down 63% year to date. As you can tell, the stock took a beating this year, giving it a deep value classification.
Other than the undervalued fundamentals, I like Majesco because it is well diversified in the video game industry. The company makes games for consoles (Playstation 3, Xbox 360, Wii, Wii U, DS, DSi) and mobile games for tablets and smartphones. The company is in a perfect position to profit nicely from renewed demand for console games as well as focusing on the future, mobile gaming. One niche Majesco has been going after is the games that feature the new motion technology of Microsoft's Kinect and Sony's Playstation Move. One game in particular that has received much praise and awards is "NBA Baller Beats" which features realistic moves with a real basketball to control the game. Additionally, the company's Zumba Fitness game has been a success and was recently found to actually help lose weight.
The bottom line here is that Majesco Entertainment could be a huge winner as new gaming consoles hit the shelves and renewed demand for console games will increase profits. On the other side of the business, Majesco is further cementing its position as a leader in mobile gaming. The company knows that it can not compete with titles such as Activision's (NASDAQ: ATVI) Call of Duty, so they focus on the motion gaming, which has not seen very many blockbuster titles. Now is the time to take a look at COOL and determine if this stock is right for your portfolio.
By offering 100% original and unmatched content by the best financial reporters, writers and bloggers in the business, EmergingGrowth.com is emerging a leading digital financial media portal. Its services provide users, subscribers and advertisers with a variety of content and tools through a range of online, social media, mobile and other mobile outlets.
Since its inception, EmergingGrowth.com has distinguished itself from other financial media companies with its sly approach to reading between the lines in order to locate that needle in the haystack. Subscribe today to see what EmergingGrowth.com has to offer.
NEW: Feature your company on EmergingGrowth.com. Find out how by filling out our form at http://emerginggrowth.com/recommend-a-company-to-feature-on-emerging-growth
Join our Linked in Group
Like us on Facebook
This news is published on the Investorideas.com Newswire and its syndicated partner network
Get free news alerts:
Sign up here
Published at the Investorideas.com Newswire - Big ideas for Global Investors
Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news as well as creates original content as a news source. Original content created by investor ideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and global syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions and advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers.
BC Residents and Investor Disclaimer: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.