Pac-man, Dig Dug, and Asteroids … all classic games that took our quarters, sucked up our time, and led us into the digital age. Atari, Nintendo, and Activision Konami were some of the early gaming publishers that put the gaming market on the map.
Who would have thought that these titles and publishers were the forefathers responsible for creating a global gaming market that is projected to be $99.6 BILLION dollar market in 2016, while growing at an annual growth rate of 8.5%+ over the next few years?
We think we’ve identified a pretty good candidate that could be part of the next-generation of leaders, and is poised to take a dominant position in the market.
But before we get into it, let’s do a quick recap of how The Money Street looks at opportunities.
First off, we look at the addressable market – how big it is, what pains exist, who the main players are, and what market disruption opportunities exist. This helps us to identify and pick companies that have a monster opportunity to potentially double, triple or even quadruple your money.
And as you know by now, we don’t bring you any old company on a daily or even weekly basis like many of the other so-called “expert analysts” out there. We’re sick and tired of seeing everyday people being on the wrong end of Wall Street’s drivel that they seem to spew every chance they get; that’s the whole reason why we started the The Money Street— to bring you real opportunities, real profits, and real success.
Opportunities are only brought to you only when we’re 99.99% sure your investment has the potential to see huge gains in the short term. The beautiful thing is you don’t have to take our word for it. You can see and experience it for yourselves with this gem we’ve discovered.
This next Featured Company of ours has the opportunity to make savvy early investors serious gains in their trading portfolio. We’ve spent a lot of time researching and carrying out due diligence on this amazing company in the highflying gaming industry and the time to bring it to you couldn’t be any better than right now.
Social Play USA, Inc. (SPLY) is leading the way in helping the sector develop monetization strategies that have the potential to produce multiple income streams from a single game release. The beauty is that it’s a providing the “complex plumbing” that most gaming companies need to have to generate revenues, but don’t have the time, budget and in-house expertise to develop it on their own. See below and excellent flow diagram we found that outlines their entire product cycle:
Social Play has every indicator of being a bona-fide game changer in the marketing, monetization, and support services’ sector for developers in the gaming and mobile application markets.
Our sneak peek into what this exciting company is up to, starts right now.
In recent years, the gaming market has undertaken a transformation that has changed the way game studios and publishers monetize their products. Not so long ago, players would buy a video game from a major publisher for a fixed price, and that would be the end of the transaction.
Today, smaller startup game studios, known as independent studios or “indie studios”, have taken that dominant position in the market we talked about earlier and have introduced new monetization strategies that allow a single game release to continuously earn revenue as players play the game.
The challenge for game developers is how to monetize their game ideas quickly.
Today’s indie studio games typically generate revenue from two sources: in-app advertisements, and virtual goods sales. This revenue model is referred to as a Freemium model – as consumers are allowed to play the game for free but have opportunities to pay for premium services. The Freemium monetization strategy allows for a low barrier of entry for players wanting to try out a game.
While designing games comes naturally to most game developers, developing the complex plumbing required for games to monetize using the Freemium model is an aspect of development that is tedious and can consume a surprisingly large portion of a game developer’s budget.
In response to this need, there have been several successful companies that have released products aimed at easing the implementation of in-app advertising, yet there has not been an all-encompassing solution for monetizing through in-app advertising AND virtual goods. That’s where Social Play, well, comes into play.
Social Play has the technology to help developers quickly develop and implement virtual goods. Oh, and did we mention that the virtual goods market is estimated to be over $52 Billion in 2016, growing at a 6%+ rate? Even more amazing is in-game purchases made on mobile devices are expected to total $23.4 billion worldwide this year, up from $21.4 billion in 2014. In the U.S., players of mobile games are expected to spend $1.82 billion this year, compared with $1.51 billion in 2014 and $1.12 billion in 2013.
This young company is on the cutting edge and provides outstanding marketing, monetization, and support services for developers in both the gaming and mobile application markets. Formerly Artesanias Corp., Social Play USA, Inc., has received its first private Financing Agreement and it holds a global exclusive rights agreement from Social Play Canada for all developed assets for marketing and sales.
As a result of the relationship with Social Play Canada, SPLY has a base of more than 200,000 users and the company has also recently completed a 5 for 1 rollback, giving the company equity a more legitimate structure and price. Management feels this restructuring creates a better value for Social Play shareholders and investors and positions the company nicely now and into the future.
“We are resolute on establishing a strong position in this evolving, growing industry. Having the funding in place to move forward, considerably strengthens our ability to market and deliver our state-of-the-art solutions, and enables us to capitalize on the momentum we have strived to build,” stated Chitan Mistry, CEO of Social Play.
MASSIVE GAINS IN THE GAMES ARENA
“Investing in game developers is like investing in movie companies or pharmaceuticals. The share prices of developers swing according to what’s in the pipeline,” says Andrew Beattie of Investopedia. And what’s in that pipeline is 532% projected growth in the number of game companies to 2019.
Gaming offers both an interactive and a social experience to users. Games occupy more than 40% of mobile app usage (across both Androids and iPhones) and almost 70% of all tablet use. Players begin young and they don’t really stop playing as they age…which means a lot of gamers.
The gaming industry is flourishing with awesome growth potential. The rising number of Internet and mobile users combined with fast moving tech ensures a growing number of prospective consumers.
It was estimated by the Entertainment Software Association back in 2012 that the U.S. videogame industry grew four times faster than the entire U.S. economy from 2009 through 2012. Going forward, the market for video games has been strong over the past few years and worldwide game sales are expected to reach more than $100 billion by 2018. Right place, right time; the smart money is on games technology and all of its subsectors and support services.
GAMES STOCKS SNAPSHOT
Here are just a few of the outstanding winners we’ve seen in the highflying games sector, beginning with top of my list winners (in order):
1) Activision Blizzard (Nasdaq: ATVI) - net revenues (GAAP) $1.28 billion (2015)
Best Bid/Ask: 38.07/38.08
June 10, 2016 $38.07 share/$33.43 60 Days Ago
Market cap: $27.8 Billion
Activision shows “serious upside potential in the next 12 months.” Zacks Investment Research upgraded its rating on Activision to a strong buy from a hold and 14 Wall Street firms have rated the stock a strong buy while one brokerage firm maintains a hold. – TheStreet
2) Electronic Arts (Nasdaq: EA) - net revenues $1.070 billion (2015)
Best Bid/Ask: 38.07/38.08
June 10, 2016 $38.07 share/$33.43 60 Days Ago
Market cap: $22.71 Billion
Electronic Arts has consistently beaten earnings estimates. In 2015, EA got a boost from their Star Wars: Battlefront first-person shooter, which finished as the year’s fourth-best-selling game in the U.S. – TheStreet
3) GameStop (Nasdaq: GME) - net revenues $65.8 million (2016)
Best Bid/Ask: $26.95/$26.16
June 10, 2016 $26.515/$30 60 Days Ago
Market cap: $2,756,294,413
This underdog dominates video game selling right now with close to 50% of the market for next-generation software says – The Motley Fool
4) Take-Two Interactive (Nasdaq: TTWO) - GAAP Net Revenue Grew 31% to $1.414 Billion (2016)
Best Bid/Ask: $39.31/$39.33
June 10, 2016 $39.325/$35.72 60 Days Ago
Market cap: $3,336,101,730
Take Two outpaced downbeat expectations 4Q 2015, thanks to Grand Theft Auto V and its online counterpart, NBA 2K16, and WWE 2K16, which powered net revenue higher, along with the newer XCOM 2. – The Motley Fool
5) Konami (NASDAQ: KNMCY)
Best Bid/Ask: 37.7193/37.15
June 10, 2016: $37.21/$31.87 60 Days Ago
Market cap: N/L
Konami continues to uptrend and has outperformed the S&P500 by 61.49%. – The Post
SOCIAL PLAY, SPLY COMMANDS OUR STRONGEST BUY RATING
Social Play, currently under $1 per share could emerge as the big winner in the race to help developers monetize through in-app advertising and virtual goods.
We noted SPLY’s impressive market opportunity.
We also discussed the 532% projected growth in the number of gaming companies to 2019 and the 200,000-plus SPLY users across the U.S. and Canada.
Thus, our strongest recommendation is that you secure your early position in SPLY right now.
Life-changing gains are possible, now just think about what a billion+ annual revenue opportunity would mean for a young game company like Social Play, which currently trades under $1 with a tiny market cap. One could easily turn an investment of $10,000 into sizable number in a very short period of time based on the success expanding its user base.
During our research of the gaming sector, Social Play quickly rose to the top in the games marketing, monetization, and support services space. From an investment standpoint, that gives us a ton of confidence and it doesn’t hurt either that a recently secured Financing Agreement has given this young company a boost, while the company is on the cusp of something absolutely huge.
Also, Social Play CEO Chitan Mistry, a 10-year veteran of the IT industry, announced in a December 2015 press release the appointment of 2 founding members to the Advisory Board. As mentioned by Mr. Mistry, “Alexander Zanfir and Tejpal Gill bring to the table their vast technical and entrepreneurial experience to guide SocialPlay’s direction and development of assets.” It’s not surprising that Social Play is attracting talent to their team.
We would not be surprised in the least if we see an early share-price rise to $2 per share in the coming months as the next round of news is released, but first things first.
In order to be in the game, you must get in the game and own SPLY.
Don’t end up kicking yourself later for missing out, so begin your own due diligence on Social Play now and be sure to show our report to your broker. Everything here is easily verifiable through publicly available sources and we’re confident he or she will agree that SPLY holds strong upside from current price levels.
The Money Street
With the rapid growth and earning potential of the games industry, we see SPLY as an heirloom stock — one that can deliver expanding gains over the coming months and years. Get your research done as quickly as possible as you do not want to hesitate on this one. Here are some links to supporting research for the Savy Investor to ponder:
- Activision Blizzard (Nasdaq: ATVI)
- Electronic Arts (Nasdaq: EA)
- Gamestop (Nasdaq: GME)
- Take-Two Interactive (Nasdaq:TTWO)
- Konami (NASDAQ:KNMCY) $249.9 billion (2016)
Other winners in the booming games sector to research:
- NetEase (Nasdaq: NTES)
- GLU Mobile (Nasdaq: GLUU)
- ZYNGA (Nasdaq: ZNGA)