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Time for a Zumba COOL down?

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January 18, 2011 – Comments (3) | RELATED TICKERS: COOL

COOL has run quite a bit recently behind the momentum of its Zumba fitness game for Xbox, Playstation, and WII which has shipped 500K units in Q1 2011 as reported on today's earnings call. At $1.40 there should be a short term pullback, but this stock has not had its last dance with only a 55m market cap and 10m in cash. COOL's 2011 earnings guidance called for $85 to $95 million in sales and 6-10 cents per share for the upcoming year. If we apply a foward P/E at the current industry average P/E of 22 we still have ourselves a stock that could groove its way to the $2 range based on current management guidance alone with no upside suprises. With such strong unit volume, it maybe that this dance party is just getting started. 

3 Comments – Post Your Own

#1) On January 18, 2011 at 11:45 PM, RallyCry (41.87) wrote:

 Additional notes of interest:

505 Games, COOL's publishing partner will be releasing Zumba Fitness overseas in February per the game's facebook page entry today 1/18.

http://www.facebook.com/ZumbaFitnessGame#!/ZumbaFitnessGame?v=wall

A captivating and hilarious demo of the game. Hint, wait for the anchorman to bust out his dance moves. 

http://www.myfoxny.com/dpp/good_day_ny/zumba-20101215

A couple of corrections to my original post:

To clarify- Xbox 360 Kinect is the Microsoft console featuring Zumba Finess 

it may be (sp.)

 

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#2) On March 04, 2011 at 10:47 AM, RallyCry (41.87) wrote:

COOL has moved up nicely to a 52 week high of $1.74 prior to earnings. The Zumba game has been a good seller and my $2 price target seems within reach. I could see the tone of the Q1 conference call lifting the stock above $2 near team and maybe $2.50 or higher by the end of 2011.

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#3) On March 09, 2011 at 11:11 AM, RallyCry (41.87) wrote:

I am going to close my green thumb today on COOL seeing how the price has really soared above $2. I might be premature in doing so, but I think we are do for a pullback with the earnings release. A 60% move is nothing to sneeze at and I will probably reopen a green thumb if we settle back in the $1.80-$1.90 range.

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