Mad Catz Interactive, Inc. (USA) (NYSEMKT:MCZ)

CAPS Rating: 3 out of 5

The Company is a provider of video game accessories and software. It designs, manufactures, markets and distributes accessories for all video game platforms.

Recs

4
Player Avatar minorgod (56.19) Submitted: 8/26/2011 5:13:38 AM : Outperform Start Price: $0.77 MCZ Score: -47.38

Video gaming is still doing great. These guys are still growing and consolidating the 3rd party video game controller/accessory market and publishing/distributing various game titles. With a PE of 4.37, I don't know why more people aren't jumping on this one. MCZ makes money on the overall increasing popularity of video games by selling specialized controllers tailored to various types of games. It isn't tied to the success of a particular platform or game title and they seem to be buying up much of the competition. (Remember Saitek?) Seems like a winning strategy to me.

Member Avatar minorgod (56.19) Submitted: 2/19/2012 3:43:20 PM
Recs: 0

This stock fluctuates wildly and has gone nowhere but down overall, but it does seem to follow some shorter-term technical indicators such as MACD/slow stochastics/moneyflow. I'd been charting it out 3,6 and 9 months and just trying to anticipate the bottoms and take any profits I made...which worked for a while. But then I decided to hold onto a few shares I bought in the $.62 range and now I'm down about 14% on those. It's in my "longshot" portfolio where I hold small amounts of risky stocks and often expect to lose high percentages on them -- but not much money. I should probably at least take this out of my CAPS portfolio though, so it stops killing my score. MCZ appears to be at a near term bottom right now and it will probably go up again, bounce off $.80, and come back down. Great for daytrading in a Roth IRA where you don't have to worry about short-term capital gains, but not really a buy-and-hold candidate for my retirement fund or for CAPS. The stock has a 52-week high of $2.39 and is now trading at $.54. I'd been hoping they'd get bought by someone, or some news would come out to push the price back up to the $1.75 range, but I wouldn't risk much real money on this one. The conditions that benefited MadCatz over the past 2 years have now changed. After a great 3rd quarter in 2011, their 4th quarter results disappointed, mostly as a reflection of these changing conditions, and IMHO, competition from devices that don't require separate input devices, such as iOS and Android tablets and smartphones. So, I'll be staying out of this one for a while except for the few hundred shares I have left in my real "longshot" portfolio -- it's just too hard to predict.

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