Date: Fri Aug 12, 2005 11:58 am
MCZ is at 0.8 today. Yahoo profile description quite accurate and so stating below.
"Mad Catz Interactive, Inc. engages in the design, manufacture, marketing,and distribution of video game accessories. Its video game accessories aremarketed under the Mad Catz and GameShark brands. The company’s productsinclude video game controllers and accessories of various types, includingcontrol pads, game enhancement software, steering wheels, joysticks, memorycards, video cables, light guns, dance pads, and microphones"
Analysis:
- Market cap 44 Mil; revenue - 2003 - 92 Mil, 2004 - 102 Mil and 2005 - 113Mil. Alright, so good revenue per share.
- P/E is at 9.64 which is really low. Not sure might have registered a onetime gain which is why it looks too good for its price.
- Last quarter's revenue was light at 14 mil and a loss of 2 mil. So surethe dollar stock fell 20 cents.
- No guidance and next quarter you might not see a significant improvementBUT after that it has immense potentialImportant points to note:
- They are selling NFL controllers now at walmart etc.
- European sales went up form 1 mil to 3 mil this quarter.
- Supply accessories to everyone (Xbox, Playstation, gamecube) lots ofpotential for revenue growth now considering new versions are going to bereleased.
- have a deal with MSFT to show XBOX logo on Xbox related accessories(margins are therefore tight but CEO expects them to improve slightly)
Cons:
- Company has some debt
- 12 Mil short term but I am sure they have a planin place.
- Stock's range has been 0.45 to 1.83 and that is a bad sign for technicalreasons- tried doing a game and flopped. Stock fell because of bad reviews therebut I think that is a good reason to buy now that earnings are over andchances are that next gaming title could be slightly better.
I think this company has tremendous growth opportunities in the comingmonths. It's a low priced stock so it can double / triple easily. Ofcourse it can revisit 0.50 since there are no short term catalysts per say but I seriously doubt it will go much lower.
Good luck!
