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Small-Cap Tech Stocks: 2 Winners, 2 Losers So Far in 2013

This wild year has been fun for some, flat-out awful for others

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Winner: China Mobile Games & Entertainment

China Mobile Games & Entertainment NASDAQ:CMGEYTD Return: +242%

China Mobile Games & Entertainment (CMGE) is a top mobile game operator in China, and a key part of its strategy is volume. The company has a portfolio of 510 games, including titles such as War Valley, Xiang Mo Shen Hua, and Immortal Wind, which are available on Apple (AAPL) iOS and Google (GOOG) Android devices.

CMGE also has been aggressive with distribution. The company has struck deals with more than 400 handset manufacturers, and plans to pre-install games on 60 million smartphones in 2013. CMGE’s current distribution network reaches more than 150 million mobile users.

In the latest quarter, revenues actually fell by about a third year-over-year to $5.9 million, though that’s primarily because of a recent transition to mobile. The good news: Revenues did increase quarter-over-quarter, by 27%.

As Zynga (ZNGA) has proved, the mobile gaming business is brutal, but investors still appear willing to be that CMGE can capitalize on its opportunity.

Article printed from InvestorPlace Media,

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