This $5 Stock Is on the Verge of Breaking Out, Thanks to the Mobile-Gaming Sector

The gaming market is bigger than ever. And it's providing us with one of the most exciting profit opportunities you'll find anywhere in the market...

Best of all, we're bringing you a $5 stock today with incredible upside in the gaming sector.

Technology

Social media marketing firm MediaKix says the global gaming market will top $115 billion in 2018. And mobile gaming accounts for nearly half of all global gaming revenue. For 2017, that was more than 80% of all app revenue from the top two online stores, Apple and Google Play.

And if you thought gaming was a "guy in the basement" thing, you're wrong. Mobile gaming is now more popular with women than men.

Smartphones have become the go-to device for mobile gaming. So the top developers, creators, and thinkers will converge to meet the demand.

The tipping point is here...

"Development costs are dropping like a rock as online coding libraries, artificial intelligence, and mobile markets grow," Money Morning Chief Investment Strategist Keith Fitz-Gerald said. "Especially when we're talking about "franchise games" involving specific personalities and well-known brands."

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The best part for gaming companies and gaming enthusiasts alike is that smartphones have become ubiquitous. And whereas the middle of the age spectrum used to be the sweet spot for devices, it is no longer a shock to see Grandma and her toddling grandchildren tapping away together. That means both the current pool of gamers and future pool are huge.

Calling the smartphone a "transformational device" is clearly an understatement.

Now, Fitz-Gerald has found an excellent way to play this growth. This $5 stock is a pioneer in the mobile-gaming space and could skyrocket in 2018...

The $5 Stock Poised for a Breakthrough Thanks to Mobile Gaming

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Shares of Glu Mobile Inc. (Nasdaq: GLUU) did not fare well in 2015 and 2016, falling from $7.60 per share to $1.73 at their low. However, the stock got back on track in 2017, racking up 160% gains to its peak in December.

"Then, at the click of a key - pun intended - management changed its thinking and the company's course," Fitz-Gerald said. "The stock is, once again, tracking higher, and the company's user base appears to be on the rise again."

Its new - but proven - CEO, Nick Earl, came on board in 2016, fresh off his stint running Worldwide Studios at interactive entertainment company Kabam. He was also a Senior Vice President at Electronic Arts Inc. (Nasdaq: EA).

Earl pivoted toward big investments in upgrades to evergreen gaming platforms like WWE and MLB TSB 18. Even better, he further developed partnerships with Disney Consumer Products, including what Fitz-Gerald called the next best thing to an annuity... Disney and Pixar characters.

Keith sees the stock reaching $10.87 by year end 2019 based on a simple formula:

  • High estimate for 2019 is $0.29 per share.
  • P/E ratio of 37.49, which is equivalent to Electronic Arts.
  • P/E ratio of 37.49 x $0.29 per share = $10.87 by the end of 2019.

There is one consideration. It is a small company - only $612 in market cap, so it is on the speculative side. Don't let the low share price tempt you into committing more than 2% of your investable assets to this - or any - speculative investment. You can still look forward to doubling your money or more, but not have to worry about doing unrecoverable damage to your portfolio if things don't go as planned.

But don't let risk scare you. The numbers here look quite good, and where there is risk, there is the potential for big gains.

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