Would ASTRO Stock Perform Better with Games?

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Jun 06 2007
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Game is the name which is synonym with all type of people regardless of age. Mention the word game and chances are you and me have play some sort of it. When comes to electronic games, the first one which I was exposed to was “Game & Watch” (goes to show how old I am now). I was poor but crazy enough to take turns together with other class-mates to play the games loaned from a rich classmate of mine.
So, when Astro All Asia Network Plc (KLSE: ASTRO, stock-code 5076) announced today that it has selected OpenTV Corp. (Nasdaq: OPTV, stock) as the solution provider for PlayJam Games over the monopolize direct-to-home satellite television, it raised my eyebrow. Astro’s new channel, branded Astro Games PlayJam, will be the only games channel available on Astro with this offering. Five new games have been launched which you can subscribe on the basis of pay-per-day. The games launched will be representing a mix of casual, arcade, puzzle, and card games – with future plans to launch two new games per month and also a leaderboard.
Since Astro is the only big boy who monopoly Malaysia’s satellite TV, I’m not going to talk much about the potential of revenue from games offering. As long as Astro could provide a competitive rates and good execution, I can see this new channel might take off handsomely. Let’s look at OpenTV instead, shall we?
OpenTV Corp. is a provider of software solutions for digital and interactive television. The Company’s software enables cable, satellite, telecommunications, and digital terrestrial operators, referred to as network operators. It sells its software solutions principally to network operators and manufacturers of digital set-top boxes and also sells related software solutions to broadcasters, programmers and advertisers.
OpenTV has a market capitalization of about $320 million with sales registering $103.4 million over the last 12-months. The gross margin is good at a 53.34%. But its’ income for the last 12-months is in red with minus $10.8 million due mainly to the fact that it’s net profit margin is minus 10.48%. The most recent quarterly earnings report was significantly lower than analysts’ consensus forecast and the the price-to-earnings (P/E) multiple is a negative number. No wonder the last stock price was $2.31 per share on the Nasdaq stock market. I just hope this guy will not goes bust.

Above are some of the games developed by OpenTV that you can click and play. Tell me how addicted you are – the more you like it the more you should think about investing Astro stock. *the game should opens in a new window*

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