Family Fued Games

Glu Mobile (GLUU) is Well-Positioned.... Just Be Patient

Glu Mobile Inc. (NASDAQ: GLUU ) is one of the few mobile phone game designers that's making waves in the business. See, while these game designers are a dime a dozen, most of them never even make a dozen dimes' worth of profit. Oh, to be perfectly clear, GLUU isn't and has never been profitable. It's got a viable business model though, and with the right marketing tweaks may well get over that hump and become a worthy investment. First things first though. Glu Mobile is self-described as a "designer and marketer of games for mobile phones. It'ss developed and published a portfolio of casual and traditional games designed to appeal to a broad base of wireless subscribers well as to users of smartphones who purchase the company's games through direct-to-consumer digital storefronts. Its games include Call of Duty, Deer Hunter, Guitar Hero 5, Family Feud, The Price Is Right, Transformers, Who Wants to Be a Millionaire?, and World Series of Poker just to name a few. GLUU acquired two game developers, Griptonite Games and Blammo Games, and August of 2011." year-over-year. And, though the company laid out some cash for the acquisition of Blammo and Griptonite last quarter, those deals coupled with a new (even if mild) growth trend may well start to push Glu Mobile over that nagging profit hump. After all, the losses have actually been quite marginal, and the trailing P/S ratio of 2.45 is quite normal.