Comments on: Cheap Stock under $5 Gravity Co. http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/?source=rss Perform Stock Valuation Automatically Sat, 11 Feb 2012 19:05:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Yar http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4257 Yar Sun, 24 Jan 2010 12:34:11 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4257 OK. your new post about grvy is right and now we got the right number OK. your new post about grvy is right and now we got the right number

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4241 Jae Jun Fri, 22 Jan 2010 16:03:43 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4241 Where are you getting the data from? I'm looking at the <a href="http://sec.gov/Archives/edgar/data/1313310/000095012309018944/h03133e20vf.htm" rel="nofollow">last 20-F</a> since ADR's don't file quarterly reports and as of April 20, 2009 they had 56.8m in current assets and 15.1m total liabilities. Where are you getting the data from?
I’m looking at the last 20-F since ADR’s don’t file quarterly reports and as of April 20, 2009 they had 56.8m in current assets and 15.1m total liabilities.

]]> By: Yar http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4239 Yar Fri, 22 Jan 2010 14:32:37 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4239 Jae, if i'm not mistaken: current assets = 68. total liabilities = 18.9. NCAV = 49.1 Jae, if i’m not mistaken:
current assets = 68.

total liabilities = 18.9.

NCAV = 49.1

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4231 Jae Jun Thu, 21 Jan 2010 17:18:37 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4231 @ Yar, NCAV = current assets - total liabilities. @ Ray, Thanks for the comment and RT Ray. As you pointed out, GRVY has many promising catalysts. The company is able to profit, good repeating revenue stream and downright cheap. If Ragnarok 2 is released anytime in the future, that news alone should create more enthusiasm for the company. @ Yar,
NCAV = current assets – total liabilities.

@ Ray,
Thanks for the comment and RT Ray.
As you pointed out, GRVY has many promising catalysts. The company is able to profit, good repeating revenue stream and downright cheap.

If Ragnarok 2 is released anytime in the future, that news alone should create more enthusiasm for the company.

]]> By: Ray Bonneau http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4221 Ray Bonneau Wed, 20 Jan 2010 15:05:55 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4221 Jae, Thank you for writing about GRVY, which put this stock on my radar screen. If Gravity can release Ragnarok II I think things will pick up revenue and profit wise. In the latest earnings report, the virtual currency segment actually grew YoY. Virtually currency is becoming a big money maker, and with a new game release, I think this can grow quickly. I also like that they are addressing the mobile gaming space. Mobile gaming is a nice area to be in right now. I think this market can grow quite nicely over the years to come. Now with all the legal settlements out of the way, and hopefully an upcoming release of Ragnarok II Online I think that this stock is a good buy. I think the downside risk is minimal, while the upside is very attractive. .-= Ray Bonneau´s last blog ..<a href="http://twitter.com/raybonneau/statuses/7987779340" rel="nofollow">raybonneau: I'm glad to see Scott Brown win the Massachusetts Senate Seat. Hopefully this will be a turning point for this country.</a> =-. Jae, Thank you for writing about GRVY, which put this stock on my radar screen.

If Gravity can release Ragnarok II I think things will pick up revenue and profit wise. In the latest earnings report, the virtual currency segment actually grew YoY. Virtually currency is becoming a big money maker, and with a new game release, I think this can grow quickly.

I also like that they are addressing the mobile gaming space. Mobile gaming is a nice area to be in right now. I think this market can grow quite nicely over the years to come.

Now with all the legal settlements out of the way, and hopefully an upcoming release of Ragnarok II Online I think that this stock is a good buy. I think the downside risk is minimal, while the upside is very attractive.
.-= Ray Bonneau´s last blog ..raybonneau: I’m glad to see Scott Brown win the Massachusetts Senate Seat. Hopefully this will be a turning point for this country. =-.

]]> By: Yar http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4219 Yar Wed, 20 Jan 2010 10:37:14 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4219 Nice post Jae. looks promising. Can u explain how did u calculate NCAV = 53? Nice post Jae. looks promising.

Can u explain how did u calculate NCAV = 53?

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4209 Jae Jun Wed, 20 Jan 2010 05:27:24 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4209 I would prefer anything with about 15-20% MOS which is being extremely safe. But better safe than sorry. I bought at $1.57. I think this post increased the price and volume today.. I would prefer anything with about 15-20% MOS which is being extremely safe. But better safe than sorry.

I bought at $1.57. I think this post increased the price and volume today..

]]> By: ryan b http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4206 ryan b Wed, 20 Jan 2010 00:16:06 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4206 Jae, very much appreciate your candor and that you took the time to answer my questions. On a particular investment like this with NNWC of 1.71, what would be your typical entry point (margin of safety)? Jae, very much appreciate your candor and that you took the time to answer my questions. On a particular investment like this with NNWC of 1.71, what would be your typical entry point (margin of safety)?

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4203 Jae Jun Tue, 19 Jan 2010 21:17:14 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4203 <strong>@ Ryan B</strong> Good questions. 1. No it wasn't a fad. The gameplay was very good and very addictive shown by how long it has lasted and the revenue it still brings in. The recent tests for Ragnarok 2 failed due to the gameplay. It didn't meet gamers expectations which is why they have been spending time and resources to revamp everything completely. Rather than simple changes, they've completely changed the whole mechanics of the game. 2. They do have other games. Not as successful as Ragnarok Online though. Check it out at http://www.gravity.co.kr/eng/index.asp Also check the photos. http://www.gravity.co.kr/eng/global/gravity.asp Another point I didn't mention is that they are coming up with a way to plan the games via the browser. Previously you had to install the game but a non install, universal game, much like how Java games exist should help it even more. 3. Plenty of cash. Biggest % of assets is cash and cash burn has been breakeven of late. 4. Worst case is the stock trading at $1 again. However, this is would also represent the best entry point again, so either way, I win. Remember that with stocks trading less than NNWC, it's hard to go any lower. e.g. my reason for buying IGOI last year was that they lost their biggest customer representing more than 30% of revenue, but the stock price didn't budge. Although GRVY would go down somewhat, we have NNWC floor to protect us. @ Ryan B
Good questions.
1. No it wasn’t a fad. The gameplay was very good and very addictive shown by how long it has lasted and the revenue it still brings in. The recent tests for Ragnarok 2 failed due to the gameplay. It didn’t meet gamers expectations which is why they have been spending time and resources to revamp everything completely. Rather than simple changes, they’ve completely changed the whole mechanics of the game.

2. They do have other games. Not as successful as Ragnarok Online though. Check it out at http://www.gravity.co.kr/eng/index.asp
Also check the photos.
http://www.gravity.co.kr/eng/global/gravity.asp

Another point I didn’t mention is that they are coming up with a way to plan the games via the browser. Previously you had to install the game but a non install, universal game, much like how Java games exist should help it even more.

3. Plenty of cash. Biggest % of assets is cash and cash burn has been breakeven of late.

4. Worst case is the stock trading at $1 again. However, this is would also represent the best entry point again, so either way, I win. Remember that with stocks trading less than NNWC, it’s hard to go any lower. e.g. my reason for buying IGOI last year was that they lost their biggest customer representing more than 30% of revenue, but the stock price didn’t budge.

Although GRVY would go down somewhat, we have NNWC floor to protect us.

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4202 Jae Jun Tue, 19 Jan 2010 21:07:35 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4202 <strong>@ N,</strong> True. Governance has been an issue but a new team has been appointed in 2008. I can't say for sure whether the new bunch is trustworthy, but it's something to keep an eye on. @ N,
True. Governance has been an issue but a new team has been appointed in 2008. I can’t say for sure whether the new bunch is trustworthy, but it’s something to keep an eye on.

]]> By: ryan b http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4201 ryan b Tue, 19 Jan 2010 18:08:07 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4201 The gaming industry is as competitive as it gets. I am sure you have already answered these questions, but I would appreciate your thoughts on the following questions. 1) Was Ragnarok Online a fad in 2001? Is this proven by the recent test phase that you alluded to? 2) Does the company have any other profitable segments/games or will it continue to burn its free cash trying to make a come-back? 3) Does the company have the arsenal (cash resources/labour) to successfully compete in this market? 4) What is the catalyst if this game flops? Since the current price is not much off its NNWC. Sorry Jae Jun for all the questions. Just trying to figure out all the ways you can kill the company. The gaming industry is as competitive as it gets. I am sure you have already answered these questions, but I would appreciate your thoughts on the following questions. 1) Was Ragnarok Online a fad in 2001? Is this proven by the recent test phase that you alluded to? 2) Does the company have any other profitable segments/games or will it continue to burn its free cash trying to make a come-back? 3) Does the company have the arsenal (cash resources/labour) to successfully compete in this market? 4) What is the catalyst if this game flops? Since the current price is not much off its NNWC.

Sorry Jae Jun for all the questions. Just trying to figure out all the ways you can kill the company.

]]> By: N http://www.oldschoolvalue.com/blog/stock-analysis/cheap-stock-under-5-gravity-grvy/comment-page-1/#comment-4200 N Tue, 19 Jan 2010 18:04:55 +0000 http://www.oldschoolvalue.com/blog/?p=3269#comment-4200 Gravity's entry in wiki shows a lot of past governance issues, is there any indication of the trustworthiness of the current management? Gravity’s entry in wiki shows a lot of past governance issues, is there any indication of the trustworthiness of the current management?

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