I decided to buy into ICI today. There was some discussion on online forums yesterday and after examining ICI closely, I realise that it is a fantastic bargain at its current MC.
The last 5 day revenue for Masketeers was $173k according to their announcement. I predict this value to continue to increase over the next 2-3 months as players progress further in the game and spend more for higher level upgrades. This is the trend for most mobile games. But let's say we continue with a modest $90k average revenue for every 5 days over the course of a year.
This means our annual revenue from just Masketeers would be 365 / 5 x $90,000 = $6.6M! For reference, our entire 2019 revenue was $2M, which means that Masketeers could singlehandedly multiply their annual revenue by 430%!! This isn't even factoring all the other games and partnerships being released right now. Their costs for this game, once its already up and running should be fairly low too, resulting in great margins.
A tech company with near $10M annual recurring revenue is worth $150M at least. Not to mention, there will be masketeers sequels to come, and the beauty of these sequels is that they will only cost around 20-30% of the resources and time, used to create the first game because everything is re-usable (graphics, animation, storyline, gameplay, controls, micro-transactions etc.). This will keep the game 'fresh' and steadily increase that recurring revenue. Not to mention, these guys are a lot lot more than just a single game / franchise, so their revenue will be rising from other sources too.
I think ICI could definitely be worth 3x its current valuation in less than a years time and is a huge bargain at their current <$50M MC. DYOR, but this investment has to be a no-brainer once you piece the puzzle together. On such a red red day, this was one of the only green stocks despite the panic sellers, which shows that the smart investors are really starting to catch on to this sleeping giant. I am considering increasing my holdings to around 25-30% of my current portfolio because the potential for this stock is absolutely incredible. GLTAH
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