Buy Alert: November 25, 2014

Marcus Haber | November 25, 2014

Buy Alert: November 25, 2014

Trade Details

Buy Glu Mobile (GLUU) January 4 Calls for $0.35 or better

Why?

GLUU is best known for its recent smash hit Kim Kardashian Hollywood on mobile devices. The game brought in $43 million in the Q3, more than all the company’s other games combined. Now the ultra-popular game is available on Facebook and Android devices as well. And, with the holiday season coming up, people are going to have a lot more time to waste on video games.

The company projected an overly ambitious $200 million in revenue from this game in 2014. But it doesn’t have to generate anywhere near that much for the stock to be worth more than it is now. The company is rapidly padding its cash stockpile and has the opportunity to make a big move in the mobile gaming space.

Because of the low price of the stock, the options are nice and cheap – and we can buy out into January. Conservative investors can take profits at $4.50. Aggressive investors can hold up to $5.50. For risk control, conservative traders should exit at $3.25, while more aggressive traders can hold down to $2.75.