King Digital: We're Avoiding Buying Into Candy Crush
In the video below Fool portfolio manager Matt Argersinger and managing editor Eric Bleeker discuss tech events across the past week.
In the video below, the two discuss the recent lukewarm IPO from mobile gaming company King Digital . The intriguing aspect of King's IPO is that unlike many other companies tapping public markets recently, it's solidly profitable. It's P/E currently sits slightly above 10, which is only about half the level of the general market.
Yet, Matt and Eric both discuss the difficulty staying on top sales charts in the mobile gaming world. Investors are familiar with Zynga's plight, the company has struggled in recent years as the popularity of Farmville faded. However, another prime example would be Gungho. That's a Japanese company that published the hit game Puzzles and Dragons. At one point, its value briefly surpassed Nintendo, but as revenues flat-lined investors headed for the exits. Its current share price is less than half of what it was last year.
To see Eric and Matt's thoughts on King Digital and why it's not the value its P/E might imply, watch the video below.
3 stocks poised to be multi-baggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multi-bagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.
The article King Digital: We're Avoiding Buying Into Candy Crush originally appeared on Fool.com.
Eric Bleeker, CFA has no position in any stocks mentioned. Matthew Argersinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
