Gravity Co., Ltd.. (ADR) (NASDAQ:GRVY)

CAPS Rating: No stars

The Company is engaged in the business of developing and distributing online game, software and other related services in Japan, Thailand, the Philippines, Indonesia, Malaysia and Singapore.

GRVY News and Commentary

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All Players

25 Outperform
8 Underperform
 

All-Star Players

5 Outperform
6 Underperform
 

Wall Street

0 Outperform
0 Underperform
 

Top GRVY Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

bigmoneybastard (30.14)
Submitted January 11, 2007

Online gaming in an Asian market, great combination for long-term growth

jed71 (99.84)
Submitted February 23, 2017

Yep, I agree that Gravity should be setting in shortly. But probably not the kind of gravity the company wants to see happen to this small stub. I get the feeling that people green thumbing this stock don’t understand it at all. I am not trying to be… More

GRVY VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from players about GRVY.

Recs

4
Member Avatar jed71 (99.84) Submitted: 2/23/2017 10:37:02 AM : Underperform Start Price: $35.58 GRVY Score: -102.39

Yep, I agree that Gravity should be setting in shortly. But probably not the kind of gravity the company wants to see happen to this small stub. I get the feeling that people green thumbing this stock don’t understand it at all. I am not trying to be rude, but a close read of the 20-F (annual report for foreign entity) shows a much different story than their press releases. Again, I’ll give the readers a few of the items I am seeing and let them research the remainder on their own time.

“A significant portion of our revenues has been and is currently derived from a single online game product, Ragnarok Online, which was commercially introduced in August 2002 and is currently commercially offered in 81 countries and markets. We derived Won 14,803 million (US$12,660 thousand) in revenues from Ragnarok Online in 2015 and Won 15,985 million in revenues from Ragnarok Online in 2014, representing approximately 41.5% and 40.1% of our total revenues in 2015 and 2014, respectively. Ragnarok Online has been on the market for fourteen years and has reached maturity in most of our principal markets. The life cycle of an online game generally lasts between four and seven years, and online games typically reach their peak popularity within the first two years following their introduction, after which time the game’s usage gradually stabilizes and begins to decline over time.”

I am not sure how many people follow the gaming market but a game from August 2002 but the two notable video gaming systems on the market at that time were the original Xbox, the Nintendo Gamecube, and the Playstation 2. The popular games were some of the original Grand Theft Auto games. These are old systems compared to today’s standards and should speak to how OLD this revenue stream is for the company.

“None of our other online games to date has proven to be as commercially successful as Ragnarok Online, and none of our mobile games to date has achieved comparable commercial success. We stopped offering Steal Fighter and H.A.V.E. Online in February and March of 2014, respectively, after neither game achieved wide-spread popularity.”

For a video game maker to be successful, they need to have multiple successful launches. It’s obvious this company has been unable to accomplish this.

“As an ADS holder, we are not obligated to and we will not treat you as one of our shareholders and therefore, you will not have the rights of a shareholder. Korean law and our articles of incorporation govern the rights applicable to our shareholders. The depositary will be treated as the shareholder of the common shares underlying your ADSs. As a holder of ADSs, you will have ADS holder rights, which is governed by the deposit agreement among us, the depositary and you, as an ADS holder. Upon receipt of the necessary voting materials, you may instruct the depositary to vote the number of shares your ADSs represent.”

Um, what? You want me to buy shares but you won’t treat me as a shareholder? So, I have no rights whatsoever? Who would ever buy these shares with no rights?

“On April 22, 2015, we announced, as approved by our Board of Directors on the same day, the change of the ratio of our ADS to common share from four ADSs to one common share (4:1) to one ADS to two common shares (1:2), effective as of May 11, 2015, which had the effect of a 1-for-8 reverse stock split of our ADSs. As a result of this ratio change, the trading price of our ADSs increased and closed at $1.00 per ADS or more for a minimum of ten consecutive business days and we regained compliance with NASDAQ Stock Market Rules, as confirmed in writing by NASDAQ on May 26, 2015. However, we cannot give any assurance that we will continue to be in compliance with the NASDAQ Stock Market Rules.”

I might be wrong, but it sounds like the ADS shares were impacted but no reverse split took place with the Korean shares? Maybe I am wrong, but that is what it sounds like. There is so much bad here, I cannot believe anyone would risk their hard-earned money on this foreign entity.

Recs

0
Member Avatar jsarasin (< 20) Submitted: 3/11/2011 1:55:59 PM : Outperform Start Price: $15.93 GRVY Score: +276.44

Cause it will!

Recs

1
Member Avatar bigmoneybastard (30.14) Submitted: 1/11/2007 12:01:54 PM : Outperform Start Price: $45.60 GRVY Score: -30.07

Online gaming in an Asian market, great combination for long-term growth

Leaderboard

Find the members with the highest scoring picks in GRVY.

Score Leader

CROIC

CROIC (24.99) Score: +497.54

The Score Leader is the player with the highest score across all their picks in GRVY.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
CROIC 24.99 2/14/2013 Outperform 5Y $11.36 +573.42% +75.87% +497.54 0 Comment
bunnybeef 85.84 8/16/2012 Outperform 1Y $12.48 +512.98% +89.00% +423.98 0 Comment
LiLNipsFatal 99.25 7/1/2010 Outperform 5Y $11.88 +543.94% +159.31% +384.63 0 Comment
anticiwin < 20 6/28/2010 Outperform 5Y $12.44 +514.95% +146.95% +368.00 0 Comment
Blubosurf 27.53 5/22/2012 Outperform 5Y $15.44 +395.47% +101.63% +293.83 0 Comment
MrSLHolliday 44.05 8/30/2017 Outperform 3W $19.62 +289.91% +8.97% +280.94 0 Comment
This player feels very strongly about this pick and has marked it a Top Pick. Top Picks do not affect a player’s score. jsarasin < 20 3/11/2011 Outperform 3Y $15.93 +380.29% +103.85% +276.44 1 Comment
cheaply 21.48 3/11/2011 Outperform 1Y $15.92 +380.55% +104.24% +276.31 0 Comment
Slider08 < 20 4/19/2012 Outperform 3Y $17.44 +338.65% +92.44% +246.21 0 Comment
wholder < 20 4/16/2012 Outperform 5Y $17.44 +338.65% +93.54% +245.10 0 Comment

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