Out Fox The $treet

Zynga reported a strong quarter and boosted '19 bookings by $46 million. The mobile game developer continues to boost revenues per share by acquiring gaming assets on the cheap with massive cash balances. The stock remains cheap at 3.1x EV/20 revenue estimates. Despite  Zynga  (NASDAQ: ZNGA ) thriving in the last few years, the stock valuation still trades below peer stocks. The recent  Q3 results  were another prime example of the market virtually ignoring the improvements ongoing at the mobile game developer. The stock remains a bargain at  3.1x EV/20 revenues  in an industry where larger, slower growing players trade at 5.0x valuation multiples. Read the full article on Seeking Alpha.  More timely commentary - WhoTrades Disclosure: Please review the disclaimer page for more details. 

Anybody following here knows that Glu Mobile ( GLUU ) has long been a strong buy. The mobile-game developer struggled with consistency until the CEO was replaced a few years back. The stock is now hitting all-time highs with a breakout above $8.

Activision Blizzard is down nearly $40 from the highs near $85. Their prime Activision and Blizzard game franchises have a whole mobile world waiting for expansion. The interactive entertainment giant has a strong moat evident by 30% operating margins. The stock trades at 17x 2019 EPS estimates and is likely to dip further based on the CFO firing. Like most stocks lately,   Activision Blizzard   ( ATVI ) has seen the stock take a substantial hit. Some of the $40 hit is justified based on disappointing numbers, but the game developer is riding a strong industry for the next decade to build an interactive entertainment giant without the large content costs of other entertainment players. Read the full article at Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details .   

Mobile game developers are struggling now, but investors shouldn't overlook the valuation prospects when the stocks turn around. Electronic Arts and Activision Blizzard don't offer any growth, yet the market is rewarding these stocks higher valuations. Investors should review how the console game developers turned around weak prospects to huge stock gains before dismissing the stocks focused on mobile games. Everybody knows that videogame players are shifting to mobile, but ironically the console game developers continue to reign supreme. Typically, the small growth companies garner the highest valuation multiples, but that isn't the case in the videogame developer sector. Read the full article on Seeking Alpha. Disclosure: Long GLUU and ZNGA. Please review the disclaimer page for more details. 

Anybody that has invested in Zynga (NASDAQ: ZNGA ) since the IPO back at the end of 2011 probably doesn’t see many potential catalysts in the stock. The company was a massive hit with social games such as Farmville and has a strong franchise with Zynga Poker. Yet as the excitement over social games dies down, the company now has several catalysts that could push the stock higher. The catalysts more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

This report is very behind schedule this month, but I thought it was worth writing anyway. This model continues to work well and the word needs to get out more about the advantage of net payout yields over just focusing on dividends. November was yet another solid month, with a 0.05% gain for this portfolio, on both a relative and absolute basis, as the benchmark S&P 500 lost 0.51%. When the market has down months this model continues to shine and overtime the results become much more evident. For the last 12 months, the portfolio was up 12.72% versus the 5.63% for the benchmark. Despite all the volatility in the markets, the Net Payout Yields Model has had a great absolute and relative performance. Trades The model had only one trade in November. Lowes (LOW) was purchased on November 1st as the net payout yield (NPY) surpassed 16% at the end of October. While LOW only paid a dividend of 2.6% at the time, 2.3% now, the company bought back a significant amount of stock in the f...

Our philosophy isn't to pick stocks based on ones potential for a buyout, but this theStreet.com report caught our attention. Harry Rady of Rady Asset Management owned biotech company Cephalon (CEPH) that recently got a buyout offer from Valient International (VRX). Since Stone Fox Capital also owned CEPH in our Opportunistic folios it was intriguing to see what else he picks, since we might have similar investment styles. Looking over his list we actually already own one of his top picks in Savient Pharma (SVNT). He also lists Activision Blizzard (ATVI) and NuVasive (NUVA) that have been on our radar. Might be time to double up research on these picks. Rady sees 100% gains in both SVNT and NUVA and interesting that they are both in the medical/health sector like CEPH. SVNT has been a long term holding that we've ridden to the $20s only to see it crash back below $10 when the sale of the company failed. With the new management team in place, they appear to be the stronges...