Thursday, January 13, 2011

UTV ...& Stride Arcolab old call......

UTV Ignition Readies for Game Release – Locks MG of $ 10 million and much more in the offing…

Right through Christmas and New Year, the studio in Japan and the Core Team at its HQ of UTV

Ignition in UK have been working overtime, and has the following developments to report. This is the first phase of concrete and positive developments.
The Following is specifically on EL SHADDAI, A third person action adventure game developed out of UTV Ignition Japan’s studio

1. After our recent launch at the Tokyo Game Show in September 2010, one can see from the links below that El Shaddai is one of the most anticipated games in Japan already. El Shaddai received an award for the “Best Future Game” at the TGS.

2. As a result of its huge buzz, we are in active negotiation for a multiple of merchandising/ licensing / co-branding / co-marketing deals – where the commercials include (a) Minimum Guarantees, (b) Revenue Share, and (c) Advertising & Marketing Support. We are pleased to report the finalization of the first two of such arrangements

A. With the number 1 Jeans company in Japan – “EDWIN”

B. With the number 1 Toy company in Japan – “Bandai Toys”

3. Motion Picture rights as Ancillary revenues – The Company has clear feedback from all our potential partners viz. – platforms, co-publishers and consumers, that El Shaddai will set new benchmarks in level and style of “Art” and “Graphics”. The Game has 50-60 minutes of best graphics – backed by a strong storyline for a motion picture. This forms part of our “Ancillary Revenue”.

4. Publishing of the Game on Consoles:

a. Most AAA games retail for around USD 60 per unit, but due to (a) the highest quality of graphics, plus (b) the pre buzz in Japan and (c) supported by Sony and Microsoft, and (d) a very strong Yen – El Shaddai will retail in Japan as close to USD 81.00 per unit, giving boost to our overall commercials by 35% albeit for the Japan market, which is an important market for a game like El Shaddai.

b. In order to optimize exploitation across revenue streams and thanks to the strong pre buzz, coupled with deals closed so far, the company has decided to break its Publishing and Distribution Strategy in four key geographies (a) Japan, (b) North America, (c) Europe (including UK), and (d) Rest of the World.

c. In Japan, backed by a healthy retail price and a strong support from the platform owners, UTV Ignition has concluded partnership with Sony and Microsoft jointly. In Japan, Sony has 3 times more PS3 installed than Microsoft’s Xbox 360. Microsoft is also aggressively growing their presence in Japan. Our partnership with Sony will give us (a) Maximum retail support, (b) Strong marketing spend, (c) Highest share per unit compared to any other Publisher we would have gone with and they will push on their PS3 platform. Similarly, the same arrangements and benefits with Microsoft, and they will push on their Xbox 360. With this strong support and marketing push from these platforms, the combined sales are expected to cross 500,000 units in Japan alone.

UTV Ignition, along with its partners - Sony and Microsoft, have concluded on first releasing this game in Japan, followed by the Rest of the World launch, due to strong pre launch buzz and then word of mouth will act as a strong support.
We have, therefore, locked the date of April 28th 2011 for Japan launch as it’s a clear period with no Big Title releases, plus is just a few days prior to the “Golden Week” in Japan – which is a long holiday week (just like Christmas is to the western world and Chinese New Year to the Chinese).

d. For the territories of USA and Europe, UTV Ignition is in the final stages of closing  co-Publishing deal with a minimum guarantee and expected closure very soon.

5. UTV Ignition is pleased to announce aggregate minimum guarantees (MG) of USD 10 million. This MG will be in addition to the revenues generated through game sales as per point 4 above.

Overall, this is a very good progress and we believe El Shaddai is well placed for a great 2011. In this update, we have focussed only on El Shaddai, as you are well aware UTV Ignition has in progress many more Titles and IPs for release, as also True Games has 2 major releases in Jan- Mar quarter of 2011.

My Comments:
I gave the call for UTV when it was around 300-400 and I wrote at that time that this can touch 4 digit and then split to 1 paidup.UTV has a long way to go that was what I wrote.
Looking at todays's annoucement at bse I am sure what I was seeing is going to come true.
UTV has made many annoucement in last 1 year which I have been reading constantly.
UTV has entered in the gaming Ind with collobartion with Microsoft.
This is a huge step taken and that was also bound to come which I was foreseeing it when I recomended it.
I am happy to read all these annoucement and stock exhibiting excellent strength in this jittery market.
Sometimes, readers keep on asking me about my picks , but many times or most of the times , my picks are way ahead of market discovering it and hence one can see that the stock has underperformed in big way with the market.But that also doesn't mean that I can never go wrong.So DD is must for everyone before investing in it.
Same happened with ABC India.It moved after 3 yrs! and non other then Madhu Kela , the head of Ril MF took stake individually in his personal name and remember this is the same Madhu Kela who picked Divi's Lab very very early at around 300 and 10 paid up and after that Divis lab splitted to 2 paid up and gave 1:1 Bonus means 100 shares became 500 on split and then 1:1 Bonus makes it 1000 shares which on CMP of Rs.630 give a price of Rs 6,30,000 for an investment made of just Rs.30,000 a phenominal return of over 20 times.........and there are many more examples like that....I have full confidence in my call like Venus Remedies, Transgene Bio etc which will give multibagger returns from here on but when that is difficult to say as I am not an operator nor have any link with any operator.
Now on Stride Arcolab.......I gave the call on Stride Arcolab on 7th Jan 2010 when it was Rs.238 and now even after we are seeing mayhem in market Stride is still giving profit of Rs 200 and readers who must have bought are not in loss.
But the main reason for my writing on Stride Arcolab today is India's Wareen Buffet, RJ, has taken stake in Stride Arcolab in last Apr10 to June 10 qr when the price was around 327 , means 100 up from my call.I am seeing his name in SHP with 5 lacs shares .
This again says that though I am not a MBA  nor have any finance degree I am still good enough to visulize the future of the Co as much as experts are able to do and that too way ahead of them.
In Srei Infra also I have been recomending it since 2008 and we saw that RJ took stake in it at 65 in Mar 2010 which also vindicates my call on Srei before expert like Rakesh Jhunjhunwala think of taking stake.
I am happy to see that my calls like Srei , Stride Arcolab,ABC India are good enough for a person like Rakesh and Madhu Kela thinking of taking stake lateron .....
I don't say RJ never makes mistake but I feel this two stocks are multibaggers of future.These are such stocks where one need to buy and forget.


  1. Rajeev Bhai,

    I need to discuss one stock and want to see where you foresee the company future.

    Please send blank mail.

    Thank you,

  2. Mahesh,
    I don't know ur id is written at the top of the blog....u can write me there whatever u wants to ask me.....

  3. Hi Rajeev
    You had written about Dq Entertainment and Indosolar during their IPOs, any views currently, I feel both are going to come out with excellent results maybe 6 to 12 months from now and they can be accumulated at these low levels.

  4. Minar,
    DQ Ent is good but Indo Solar can take more time then what u r writing.
    It is very difficult to understand the earnings of Solar Co as we have seen in XL Tele.Suddenly the profit gets vanished and suddenly Co get in a high loss due to huge leavarage of funds from banks.
    That is the reason I never recomended Suzlon here.After I went wrong hugely in XL Tele , I am skeptic on recomending any solar stocks because it is capital consuming and the International standard are so high that Indian Cos can never come in their league to compete with them.
    Indian Cos are no match to US or Chinese Solar Cos.We are baby here and infact we are baby in many areas...except some extraordinary Cos like L&T which successfully completed work for manufacturing some parts of Atomic plants which was exported to USA Co, Areva Ltd and Cos in IT sector like Infy, TCS, Wipro etc.....and the Pharma sector....

  5. Hi Rajeev & Fellow-bloggers,
    Giving below the link of Ramesh Damani's RD 360 on Value Investing & Benjamin Graham

    With Regards,

  6. Rajeev Bhai,

    What u say on compact disk board is meeting to delist stock in this case what will happen to our investments.

  7. Mahesh,
    That is stock market and perticularly Indian Stock market.
    Let us see what price they give to delist and surrender the shares!
    Mahesh, you looks to be a big investor, why don't you find someone and make a counter open offer as you get the whole Co for 36 cr!