Glu Mobile, Kandi Technologies Surge; BlackBerry Adds New COO

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) was down more than 87 points as of 11:35 a.m. EDT. Despite the move lower in the broader markets, tech stocks Glu Mobile (NASDAQ: GLUU  ) and Kandi Technologies (NASDAQ: KNDI  ) surged to start the week. BlackBerry (NASDAQ: BBRY  ) was down on hiring news.

Glu Mobile continues Kim Kardashian-fueled rally
Shares of mobile game developer Glu Mobile continued their recent rally: An 11.3% gain on Monday brought the company a roughly 90% share price appreciation in just the last 30 days.

Glu Mobile's hit title Kim Kardashian: Hollywood is the top free app on the iTunes free app charts and has consistently been in the top five since its debut late last month. At the same time, other Glu Mobile titles have also seen success: Dino Hunter: Deadly Shores and Deer Hunter 2014 are among the top 100 apps.

As Glu Mobile's shares continue to rise, investors may wonder if the company has become grossly overvalued. As it only recently achieved profitably, Glu Mobile currently has no trailing price-to-earnings ratio; however, the longer Kim Kardashian dominates the app charts, the more the company stands to make on the game. As a free-to-play title, Glu Mobile benefits from in-game microtransactions, and more people playing will result in more transactions.

Kandi Technologies adds another 6%
Kandi Technologies is another stock that has experienced wild gains in recent days; With Monday's more than 8% gain, the stock is up better than 40% in just the last five trading sessions. 

Kandi appears to be benefiting from continuing momentum -- the rally in shares was originally sparked by the company reporting impressive sales of its small electric cars in China. Last quarter, Kandi, in partnership with Geely, sold over 4,000 electric vehicles -- more than double the amount it sold in the prior quarter.

The gain may have also been fueled by the recent sell-off: Although Kandi shares are up more than 75% year to date, shares were nearly cut in half in March and April after the company revealed that it was being investigated by the SEC.

Source: Wikimedia Commons

BlackBerry names new COO
Shares of BlackBerry fell nearly 1% on Monday, worse than the Dow Jones, after the company announced that it had named a new chief operating officer.

Marty Beard will fill the spot, which had been vacant since late last year. Beard's appointment underscores BlackBerry's commitment to the enterprise segment -- previously, he had served as CEO of a company offering cloud computing services to enterprise customers. Bolstering its management team should help BlackBerry in its ongoing turnaround, and appears to be a positive sign for a company aiming to return to profitability.

Yet Beard doesn't appear to be a particularly impressive hire. If BlackBerry does succeed in its ongoing transition, he could be key, but few BlackBerry investors likely knew who he was prior to Monday's announcement. In that context, the muted response seems justified.

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  • Report this Comment On July 22, 2014, at 8:43 AM, Gdubu wrote:

    Sam, this is what the Company said in its Annual Report on Form 10K for the year ended December 31, 2013:

    “The Company has been furnishing documents to the Denver Regional Office of the Securities and Exchange Commission in response to a document subpoena issued on November 21, 2013 regarding a matter known as In the Matter of Kandi Technologies Group, Inc. As indicated in

    the subpoena, the investigation is a fact-finding inquiry and does not mean that the Company or anyone has broken the law. The Company has cooperated, and is cooperating fully, with the SEC in this matter and will continue to supply the SEC with whatever additional information and material that is requested. The Company does not have any information, at present, as to the duration or outcome of this investigation. The Company does not anticipate a negative result.”

    On June 20, 2014 Kandi filed an S-3 Mixed Securities shelf registration for up to $300 million. Pryor Cashman LLP was identified as the Agent of Service for the S-3 filing. Pryor Cashman is a prestigious NYC law firm, http://bit.ly/1qRcrMl.

    Pryor Cashman’s due diligence before undertaking the filing of the registration statement would have determined the nature and seriousness of the SEC matter disclosed by the Company. Any prestigious law firm serving as the Agent of Service is highly unlikely to be party to a registration statement filing if there is some material SEC investigation either pending or underway with the Company that would impair the likelihood of the registration statement becoming effective.

    As the Company stated in the Form 10-K, “The Company does not anticipate a negative result.” As a matter of full disclosure, versus Fool disclosure, I would expect you to elucidate the matter rather than couch it in innuendo.

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10/24/2014 4:30 PM
^DJI $16805.41 Up +127.51 +0.76%
DOW JONES INDUSTRI… CAPS Rating: No stars
BBRY $10.26 Down -0.06 -0.53%
BlackBerry CAPS Rating: *
GLUU $4.47 Down -0.02 -0.45%
Glu Mobile, Inc. CAPS Rating: **
KNDI $14.01 Up +0.37 +2.71%
Kandi Technologies CAPS Rating: *
AAPL $105.22 Up +0.39 +0.37%
Apple CAPS Rating: ****

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