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Glu Mobile's share price hits two year high

Market cap now over $110 million

Glu Mobile's share price hits two year high
It's not the first time we've been intrigued by fluctuations in Glu Mobile's (NASDAQ:GLUU) share price.

After all, the publisher has been restructuring for over two years, and suffering from declining sales and quarterly losses during that period, which has seen its share price hammered.

At such low levels, any percentage changes in price seems much higher.

Still, the arrival of new CEO Niccolo De Masi at the start of 2010 has steadied the ship, with a $13.5 million refinancing deal sorted out during the summer, and the successful launch of the company's new freemium games - notably Gun Bros.

On the up

And perhaps for those reasons, the current rise seems more significant compared to the last leap in its share price in May 2010.

For one thing, Glu share price has now been around or over the $2 mark for two months. The start of 2011 has seen it over $2.50 - that's the best since September 2008.



At time of writing, it's $2.64, slightly off its $2.77 peak earlier in the week. This values the company at $118 million.

Buyer or seller

Of course, share price speculation often focuses on the potential for a company to be bought. With M&A activity in this sector expected to increase in 2011 on the back of deals such as DeNA's ngmoco acquisition, and EA's of Chillingo, this could be possibility.

More likely though, it's a mark that investors hope Glu has finally turned the corner, even though it predicts an annual loss of $15.5 million and $15.9 million for 2010.
Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.