Majesco Entertainment Gives Investors Reason To Cheer

Majesco Entertainment Co. (COOL) has given investors a reason to cheer over the last two trading sessions (+21%) closing today at $1.69 after seeing an intra-day high of $1.93. Majesco Entertainment traded 873,700 shares today well above its average daily volume of 148,000.

Readers of 2oversold.com will know we blogged about Majesco Entertainment this past weekend adding it to “Our Picks” list as a company we feel is poised to do well over the coming 12-18 months. We had previously blogged about Majesco Entertainment in Jan, 2009 ( Read: Is Majesco Entertainment COOL again? ) as a company we thought was worth a look for the risk tolerant investor, but also felt we needed to see a couple more quarterly earnings reports before we could get very excited about it as a possible long term investment.

I felt the last couple of reports have indicated the company has not only found a nice niche in the market but also has the economy pressures in its favor. Majesco Entertainment (NASDAQ - COOL) creates and markets value games for the video gaming industry and appear at this time to be well focused on producing these quality games for the Nintendo DS system.

It is our opinion that this company should only gain strength as we headed into the Christmas Season and continued execution will harvest both the company and its investors a nice reward.

The downside here for many investors remains the low float of the company’s stock. This means there can be and usually are some very violent swings in the daily movement of the stock. I continue to suggest that part of any individual’s due diligence should be to explore how these low float stocks move and understand that while they move to the upside in huge moves, the downside can come just as fast.

The company appears to be on a roll and appears to be headed for higher ground. Majesco Entertainment is due to report 2nd qtr earning on June 15, 2009 (After the market close) and we think they will have many positive things to say about the pipeline and current releases.

Congratulations to both Majesco Entertainment and its shareholders on an excellent performance these last couple of trading sessions.

2oversold.com is a blog for the individual consumer and private investor. We are not experts in the markets nor do we make any recommendations of any company. The companies we blog about are discussed for the purpose of this blog only and this should not be considered as investment advice.