GRVY

The big shareholder groups in Gravity Co., Ltd. (NASDAQ:GRVY) have power over the company. Institutions will often...

Seoul, South Korea, Oct. 22, 2020 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games, today announced that Ragnarok X: Next Generation, a new MMORPG mobile game, has been successfully launched in Taiwan, Hong Kong and Macau on October 15, 2020.  ByteDance Ltd., a global IT company, publishes this game and Gravity Communications Co., Ltd., Gravity’s subsidiary in Taiwan, supports the ByteDance as a joint publisher. Ragnarok X: Next Generation received heated reaction from users by achieving over 800,000 pre-registration sign-ups that opened on August 25, 2020.  As of October 21, it ranked as the first in top grossing of Apple’s App Store games and the second in top grossing of Google Play games.More fun will be added to the game by providing various events with abundant rewards for users going forward.Gravity expects to gain more popularity keeping up this early risen attention incessantly [Ragnarok X: Next Generation Official Website] https://rox.gnjoy.com.tw/ [Ragnarok X: Next Generation _Facebook Page] https://www.facebook.com/ROXNextGenerationAbout GRAVITY Co., Ltd. ---------------------------------------------------Gravity is a developer and publisher of online and mobile games. Gravity’s principal product, Ragnarok Online, is a popular online game in many markets, including Japan and Taiwan, and is currently commercially offered in 93 markets and countries. For more information about Gravity, please visit https://www.gravity.co.kr.Contact:Mr. Heung Gon Kim Chief Financial Officer Gravity Co., Ltd. Email: kheung@gravity.co.krMs. Jin Lee IR Unit Gravity Co., Ltd. Email: ir@gravity.co.kr Telephone: +82-2-2132-7800

The Labyrinth of Ragnarok, a new idle MMORPG with diverse game stages and monsters, was launched in the Philippines, Singapore, and Malaysia.

GRVY has an excellent business with its IP. However, I consider its dependence on one single franchise to be very risky for investors.Yet, it's undeniable that a gaming niche loves GRVY's "Ragnarok" franchise. Even though this can cap the company's growth, it also gives it a business moat of sorts.Unfortunately, from a numbers perspective, I think its valuation is excessive and doesn't reflect its inherent risks.In my view, the company's stock should be worth roughly $92 per share. This implies a 19.9% potential downside from current levels.Consequently, I think it's better to pass up on GRVY for now. And even after a pullback, GRVY shouldn't be a significant part of your portfolio.

I believe the company offers a considerable medium-term opportunity for investors in the gaming segment.However, I would recommend waiting for a pullback from these all-time highs because the risk element is a little too high at the current level.There will likely be a pullback from investors exiting their positions and taking their profits off the table ahead of Q3-20.

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Seoul, Sept. 11, 2020 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games, today announced that Ragnarok X: Next Generation, a new MMORPG mobile game, will be planned to be launched in Taiwan, Hong Kong and Macau on October

With a price-to-earnings (or "P/E") ratio of 27.9x Gravity Co., Ltd. (NASDAQ:GRVY) may be sending very bearish signals...