Here’s the weekly ranking check for our top-pick G5 Entertainment. In November and December, G5 has released a large amount of new games across all platforms. This starts to show in the top grossing ranks as more and more G5 games show up in our weekly ranking check. Please note that our screening only takes iOS games into consideration, i.e. Google Play, Kindle and Nook have to be considered separately.
“Doomsday Preppers” continues to develop favourably and is now also in Germany among the top 300 grossing games for iPhone and iPad. The game keeps its good positions in the US market and was ranked #265 for iPad and #289 for iPhone.
In the meantime, G5’s first free-2-play Hidden Objects game “The Secret Society-Hidden Mystery” has become a success in several countries. As of today, the game is ranked #97 in Spain for iPad, #94 in France for iPad, #78 in Russia for iPad, #128 in Russia for iPhone, #102 in South Korea for iPad, #219 in China for iPad and so and so.
(We are screening the app markets of Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Netherlands, Russia, South Korea, Spain, Sweden, UK and USA).
Number of G5 Entertainment games among the top grossing charts for iOS:
The steady improvement of G5 games rankings comes amid rapidly growing overall market for apps. As we have written about previously, Fiksu’s App Store Competitive Index tracks the aggregate volume of downloads per day achieved by the top 200 ranked free iPhone apps in the U.S. In October, the Index dramatically increased by 33 percent to 5.40 million daily downloads from 4.07 in September.
We also want to remind our readers that G5 Entertainment is a stock that has shown a clear historical pattern in the past. As you can see in the graph below, G5 Entertainment has always started to trade significantly higher in January of each year (it doubled both at the beginning of 2011 and at the beginning of 2012). Why is that so? G5 Entertainment always issues a preliminary quarterly result statement a few days after the actual end of each quarter (i.e. around January 3rd). So at the beginning of each year, investors get to hear that G5 has actually achieved its targeted revenue and earnings levels and the market starts to focus on the coming year. Furthermore, the holidays are THE most important part of the year for app sales in general. People unwrap their new smartphones and tablets and start to fill them with content. This goes usually along with very positive newsflow around the app industry in total and G5 Entertainment in particular.
It is usually uncommon that the market is so short-sighted and only looking at the current year’s earnings potential for a company but in small-cap names that are listed on smaller exchanges, like G5 is, investors are usually less sophisticated and have in the past acted under the theme “seeing is believing”. We could spend hours now and here to argue why this is wrong etc etc but rather than doing that we think it is more important to just accept the fact that it is like that. And the good news is: we are approaching that time of the year again. You can decide for yourself if you want to follow the crowd and jump on the train when it has left the station in early January or if you want to be one step ahead. If you choose the latter than the coming days and weeks are the perfect entry point into this fast growing, profitable, debt free stock that is trading at a ridiculously low 12m-forward PER of around 8x.
Finally, don’t forget that it is time to nominate your favourite G5 Entertainment games for the prestigious bestappever awards 2012. Games can be nominated in different categories (for more information see our recent article: http://nordicinvestor.net/2012/11/24/g5-entertainment-time-nominate-bestappever-awards).