From the article:
Stone Fox Capital
Bottom Line
The best part about a secondary in a growth stock is that it typically deflates the stock price while at the same time padding the balance sheet with cash. New investors get the opportunity to enter the stock at an artificial low with the extra security blanket of a balance sheet loaded with cash. In this case, investors had the added proof of the process working in the past and a prime example of how the company can use a small amount of cash to turn a distinguishable game franchise into a mobile winner.
The recent secondary by Glu Mobile was undoubtedly frustrating to existing investors at the time, but anybody paying attention to the balance sheet knew the possibility might exist. As with Zynga and its large cash hoard, it's really what the company does with the cash that matters as much as how it was obtained. Glu Mobile has a history of utilizing the cash cushion to further the company and investors should opportunistically take advantage of the current and future dips in the stock.
Use the recent weakness in Glu Mobile to embrace the stock as it continues to create top downloaded games.
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