Today The Bowser Report Editor Cindy Bowser recommends selling Majesco Entertainment Co. (COOL), which was recommended at $2.19 in Investment Digest issue 719, dated May 16, 2012.
“We only recommended COOL last April. It was $2.50/share at the time. When we recommended the company, it was reaching new grounds in video games sales due primarily to its hit franchise, Zumba Fitness. In a rare case, COOL never appreciated after our recommendation, falling to its current level of just above $0.50/share.
“The company recently reported its Q1 2013 results — typically its strongest quarter because of holiday sales. Instead of this, COOL reported a 64.5% decrease in revenues and a 127.7% decrease in earnings — a $2.1 million loss versus a $7.7 million gain last year.
“What’s worse, COOL’s strongest sales segment (Nintendo Wii) declined 73.5% in sales. All other segments decreased at least 41.0%. We were waiting for the holiday numbers to come in before making a decision. As shown, the numbers were disappointing, so we recommended the sale.”
- Cindy Bowser, The Bowser Report, April 2013