thefatalist (< 20)

I've got MCZ on the brain...it's 50 cents, a solid company and will be over $1 by XMas

October 23, 2009 – Comments (4) | RELATED TICKERS: MCZ

MCZ pitch...They own MadCatz, Saitek, Joytech, Gameshark and AirDrives video game accessory companies.  Go to WalMart.com and you can see a lot of their MadCatz and Saitek products...a lesser amount of product is sold through Target and the biggest retailer of their stuff is GameStop.  Their stuff is generally cool and connected to the hottest video games and NFL logo stuff.

Next month when the new Call of Duty comes out (could be the #1 game of the year) you'll see all kinds of MadCatz products available which should give a rush of new earnings, plus they just came out with a new Fender licensed guitar for the Rock Band franchise and it is as nice as a real Fender for a couple hundred bucks.

Senior management has a minimum of 4 years with the company and the man who calls the shots has been there for 10 years.

The market cap is still under 30 million and the company sells about 100 million annually which I expect to grow.  They took a one time charge of 27 million on last year's statement and they lost 35 million.  This year they expect to make about 3 million but I think that they will break through to nearly a 10 million yearly profit because I expect this Christmas to be a big one for video games.

If you look at the chart for this company they always dip in odd years to 50 cents-ish and in even years to 1.50-ish, I know that is totally random and I don't look at charts but it is an eye-opener and could possibly have to do with the cyclical nature of new consoles.

P.S.  I saw this first as UltraLong's favorite personal stock and I bought at .37 two weeks ago.  It went up to .50 last Friday, down to .42 mid week and now is just above .50 again.

UltraLong said he sees this stock at a little over a dollar and I see it at 1.40 - 2.40 depending on the impact of the holiday season.