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Is a $5 Stock Selling for Under $2?

May 04, 2011 | About:
Jason Sarasin

Jason Sarasin


About the author:

Jason Sarasin
I work in public accounting and have been reading and doing research on value investing for nearly ten years now but didn't start investing until 2008.

Rating: 4.3/5 (29 votes)


SapientInvestor - 3 years ago
It looks like they have eliminated monthly subscriptions to Ragnorak as of April. Do they get most of revenue from subsciptions or through add ons? Maybe this is in anticipation of the sequel. Looks interesting.
Jsarasin - 3 years ago


I was going to add a paragraph on Free2Play but didn't have time. Most MMORPG are F2P now. But this does not mean its free. What happens is to move up in the game or to add weapons and things in that nature cost money. I think they call it a shop or something. This in the long run will create more revenues. For example I was doing research on all there games and I saw one comment say they were paying $30 for the monthly subscription but now are paying over $100 per month buying things to level up or whatever.

Great questions!

Jason Sarasin
Camacho8218 premium member - 3 years ago

I looked at some of the figures that Yahoo shows. I know you said that these numbers should not be used because of their foreign status but it got my attention that the cash figure they show is 66 million and no debt. The market cap is 48 million. Are this numbers correct?


Juan Carlos

Jsarasin - 3 years ago

Numbers will be down some in 2010 but in 2009 is was around 64 million in cash and 17 million in liabilities. Basically no debt cause liabilities are accrued and tax items.

Yes market cap is around $48 million right now.

To me this is just the beginning cause if you see my article games are coming out from every angle. Doesn't mean they will be profitable but everything else indicated management is capable.
Loyaldark - 3 years ago
as a 10 years old online gamer i can tell you free to play is not really free, it actually makes more money than hourly or monthly or buying the CD. like Rose online, came out around 2003 ( i was in the the close beta) if you want a real useful skill like a Passive skill that adds up 15% damaged you need to buy it. but the skill only apply to only one character, and most people, i will say at least 80% of player have more than two characters, becasue different class have different skill and function, like some can craft item but some cant. if you have all class it will be handy. also some item are limit in use time, like costume which girls love the most, they get you 15 days, 30 days. after that you need to repurchase, just like monthly. as result, people spend more than WHEN ITS NOT FREE.
Jsarasin - 3 years ago


Thanks for the comment!

Would you say most MMORPG games are free2play now or no?


Jae Jun
Jae Jun - 3 years ago
Great work Jason.

If you take a look at simple games on iphone or android such as those farming games, they require you to purchase additional items. It's the model of all new multiplayer games nowadays.

Once a game gets addictive, gamers will consistently buy items for their characters. Have a friend who used $100 a month just to buy things.
Loyaldark - 3 years ago

Yes, i will say most MMORPG games are free2play now. it is a trend. a lot of Pay to play changed to F2P( free2play), such as Lord of the rings, and globe agenda, which they are the game developed by westerns, but still they have to switch from p2p to f2p. again i will say more than 80% of online game on globe market is F2P, and the reason for that is very simple, it makes profit.

Jsarasin - 3 years ago
FYI - I noticed I mentioned the 50% purchase of Barunson was pulling a profit already. Basically this is not true and a big error on my end. I was writing this article already when the consolidated report came out and I pulled the profit from the unconsolidated report before I completely looked at the other report. Barunson has a profit for the year but since the acquisition from Gravity they are currently at a small loss. I edited the article and should of listened to myself when I said the financials for Gravity can get confusing.

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