Is There Life After Kim Kardashian for Glu Mobile?

www.glu.com Shares of Glu Mobile (GLUU) opened sharply lower on Thursday after it reported disappointing quarterly results. The mobile gaming company that raced into market fancy this summer as its "Kim Kardashian: Hollywood" game raced up the mobile apps charts is now going the other way. It seems like a monster quarter at first glance. Adjusted revenue soared 270 percent to $83.6 million when pitted against last year's third quarter, fueled largely by the success of the Kardashian celebrity simulator, in which players create a character that rubs elbows with the rich and famous as they plot their way to stardom in an interactive adventure. Glu's adjusted profit clocked in at 17 cents a share, well ahead of the 11 cents a share that analysts were targeting. Glu had posted a quarterly loss a year earlier. Glu also boosted its guidance higher for all of 2014 in Wednesday night's report. This is often the recipe for a surging stock, but Glu took a hit because analysts were holding out for more than a 270 percent pop on the top line. Wall Street was banking on $85.2 million in revenue. As for that improved outlook for this year -- with Glu now eyeing between $225.5 million and $230.5 million in revenue in 2014 -- analysts were modeling $232.6 million on the top line. Glu may be in a better place than it was three months ago, but the market overshot on the potential of a single hot franchise. Rubber Meets Glu Glu Mobile has been one of this year's most volatile stocks. It began the year at $3.88, rarely mentioned in the same circles as casual-gaming leaders King Digital (KING) and Zynga (ZNGA). However, the stock had doubled by this summer when Kardashian's game took the mobile gaming market by storm. In a stunning run this summer, Glu shares posted four consecutive weeks of double-digit percentage gains, soaring with weekly pops of 19 percent, 13 percent, 14 percent and 13 percent. It's been all downhill after that. As soon as Kardashian's game began to slip from the top of the charts, investors began to head for the exits. They had seen this before. Zynga tumbled after bookings peaked in 2012. King Digital slumped after "Candy Crush Saga" began declining in popularity earlier this year. Why did investors think it would be any different this time? Glu is trying. It offered its first substantial update to the Kardashian game a few weeks ago. It also locked up Kardashian with a three-year contract, just in case it's still a relevant franchise in this very fickle market. The game is at No. 17 among the top-grossing apps on Google (GOOG) Play. The problem is that ranking that low is practically a death sentence in the cutthroat world of mobile. After all, King Digital has five of the 11 highest-grossing apps on Google Play, and its stock has shed half of its value since peaking in July. Mrs. West Goes South Glu is hoping that it can land another hit in case Kardashian's popularity has peaked. Its games don't all fade right away. "Deer Hunter" is still among the 100 highest-grossing games even though it's been out for more than a year. This year's release of "Dino Hunter: Deadly Shores" was greeted to 1.5 million downloads in a single day -- a Glu record. It's not giving up on Kardashian, of course. The game continues to account for the lion's share of Glu's revenue at the moment. However, if King or Zynga taught us anything, it's that staying on top isn't easy, especially when you have a lot riding on a single hit title. More from Rick Aristotle Munarriz
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5 Zacks Ranked #1 Government Bond Mutual Funds to Buy Now - Mutual Fund Commentary

Conservative investors prefer debt instruments not only because they safeguard the capital invested but also for the regular income flows they provide. Bonds bring a great deal of stability to an equity-heavy portfolio while providing dividends more frequently than individual bonds. U.S government bonds mutual funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered to be the safest in the bond fund category and are ideal options for the risk-averse investor.

Below we will share with you 5 top rated government bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all government bond funds, investors can click here to see the complete list of funds.

Nuveen Inflation Protected Securities A (FAIPX) seeks total return. The fund invests a lion's share of its assets in inflation protected instruments affiliated by governments or by their entities and companies. It may also invest a maximum of 20% of its assets in instruments which are not inflation protected. The government bond mutual fund returned 1.6% over the last one year period.

The fund has an expense ratio of 0.83% as compared to category average of 0.78%.

PIMCO Long-Term US Government A (PFGAX) invests heavily in fixed income instruments of the U.S. government or its affiliates. It may also invest without any limitation, in derivatives including options, swap agreements and mortgage backed securities. The fund seeks total return with capital preservation. The government bond mutual fund returned 12.1% over the last one year period.

Stephen A. Rodosky is the fund manager and has managed this fund since 2007.

Vanguard Long-Term Treasury (VUSTX) seeks a high level of current income which is sustainable. The fund invests a large share of its assets in U.S. Treasury securities such as bills and bonds. It aims to have an average weighted maturity period between 15 to 30 years. The government bond mutual fund returned 12.4% over the last one year period.

As of June 2014, this fund held 35 issues with 10.42% of its assets invested in US Treasury Bond 2.75%.

T. Rowe Price US Treasury Long-Term (PRULX) invests a major portion of its assets in government affiliated U.S. Treasury securities. The rest of the assets are invested in other government backed instruments. It has a maturity between 15-20 years and may also vary from 10-30 years. The government bond mutual fund returned 11.6% over the last one year period.

The fund has an expense ratio of 0.52% as compared to category average of 0.56%.

Dreyfus US Treasury Long-Term (DRGBX) seeks total return with capital growth and current income. It invests a majority of its assets in U.S. Treasury instruments. It may also invest in other instruments which are approved by the domestic government or issued by its entities. It generally has duration of more than or equal to 7.5 years and minimum of 10 years of weighted duration of maturity. The government bond mutual fund returned 12% over the last one year period.

Robert Bayston is the fund manager and has managed this fund since 2008.

To view the Zacks Rank and past performance of all government bond mutual funds, investors can click here to see the complete list of funds.

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NYC tabloids keep a straight face on Ebola

NEW YORK (CNNMoney) New York City's tabloids are known for headlines like "Headless Body In Topless Bar," "Ford to City: Drop Dead and "Derek Eater." But they played it straight when it was time to report that Dr. Craig Spencer tested positive for Ebola Thursday night.

In the hours before Spencer was diagnosed he had gone bowling, rode the A train and stopped by a meatball shop. But there was not a single pun to be found on New York City newsstands Friday morning. No hysteria and no sensationalism.

Instead newspapers like AM New York went with just the facts. The free daily's front page simply said "Ebola in NYC" and showed a picture of Spencer in a hazmat suit while caring for victims in West Africa:

"We didn't want to be alarmists," said Pete Catapano, executive editor of AM New York. "Obviously it's a scary subject... We wanted to be very direct, very straight-forward."

The Daily News also took a tempered approach with its front page:

The New York Post (which is infamous for its outrageous covers) was a little more brash with its "Ebola Here!" headline, but did stick to just the facts:

"A subject like this... people make jokes about it. That's not our place to do that," Catapano said. "We just wanted to be very respectful, and let the story speak for itself."

Markets Open Higher; GM Profit Beats Estimates

Related BZSUM #PreMarket Primer: Thursday, October 23: Shooting At Canadian Parliament Unsettles Markets 3D Systems Slips On Profit Warning; Regulus Therapeutics Shares Spike Higher

Following the market opening Thursday, the Dow traded up 1.37 percent to 16,687.12 while the NASDAQ surged 1.37 percent to 4,442.87. The S&P also rose, gaining 1.21 percent to 1,950.35.

Leading and Lagging Sectors

In trading on Thursday, industrials shares were relative leaders, up on the day by about 1.43 percent. Meanwhile, top gainers in the sector included CoreLogic (NYSE: CLGX), up 9 percent, and ITT Educational Services (NYSE: ESI), up 9 percent.

Telecommunications services shares fell by 0.26 percent on Thursday. Top losers in the sector included AT&T (NYSE: T), down 2.2 percent, and Rogers Communications (NYSE: RCI), off 1.9 percent.

Top Headline

General Motors Company (NYSE: GM) reported upbeat earnings for the third quarter.

The Detroit, Michigan-based company posted quarterly net income of $1.38 billion, or $0.81 per share, compared to $698 million, or $0.45 per share, in the year-ago period. Excluding one-time costs, GM earned $0.97 per share.

Its revenue gained 2% to $39.25 billion. However, analysts were expecting a profit of $0.95 per share on revenue of $39.8 billion.

Equities Trading UP

Brookfield Residential Properties (NYSE: BRP) shares shot up 21.51 percent to $23.10 after Brookfield Asset Management (NYSE: BAM) proposed to acquire around 30% of the company not currently owned for $23 per share.

Shares of Infinera (NASDAQ: INFN) got a boost, shooting up 21.96 percent to $12.94 on stronger-than-expected quarterly results.

Tractor Supply Company (NASDAQ: TSCO) shares were also up, gaining 15.82 percent to $71.00 on upbeat quarterly results. Morgan Stanley raised the price target on the stock from $65.00 to $72.00.

Equities Trading DOWN

Shares of IPC The Hospitalist Company (NASDAQ: IPCM) were down 19.15 percent to $38.03 after the company reported downbeat Q3 results and lowered its FY14 forecast.

Proto Labs (NYSE: PRLB) shares tumbled 17.11 percent to $57.50 on weaker-than-expected Q3 results.

Yelp (NYSE: YELP) was down, falling 14.99 percent to $59.70 after the company reported upbeat results for the third quarter, but issued a weak Q4 outlook.

Commodities

In commodity news, oil traded up 0.91 percent to $81.25, while gold traded down 0.84 percent to $1,235.00.

Silver traded down 0.27 percent Thursday to $17.19, while copper rose 0.43 percent to $3.03.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.07 percent, the Spanish Ibex Index climbed 0.12 percent, while Italy’s FTSE MIB Index jumped 0.08 percent. Meanwhile, the German DAX climbed 0.39 percent and the French CAC 40 jumped 0.68 percent while UK shares dropped 0.11 percent.

Economics

US jobless claims increased by 17,000 to 283,000 in the week ended Oct. 18. However, economists were estimating claims to rise to 285,000 in the week.

The Chicago Fed National Activity Index rose to 0.47 in September, versus economists’ estimates of 0.15.

Home prices increased 0.5% in August, versus a 0.2% rise in July, according to the Federal Housing Finance Agency. US home prices gained 4.8% y/y in August.

The flash reading of Markit manufacturing PMI dropped fell to a reading of 56.2 in October, versus 57.5 in September.

The Conference Board's index of leading indicators increased 0.8% in September.

The Treasury is set to auction 3-and 6-month bills. The Treasury will also auction 2-year, 5-year and 7-year notes.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: Earnings News Guidance Eurozone Futures Commodities M&A Econ #s

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Best Cities for Young Home Buyers

With mountains of student debt, a slowly recovering job market and minimal wage growth, many twenty- and thirtysomethings may not even be pondering the idea of owning a home. Plus, rising home prices and strict credit standards can make homeownership seem unattainable.

See Also: Find the Best Mortgage Rates in Your Area

All of this financial strain has created some serious hesitation among younger would-be homeowners. According to the National Association of Realtors, the under-35 crowd made up 43% of all homeowners in 2005. By the start of this year, that share of the homeowning crowd had dropped to just 36%.

Despite the discouraging landscape, you shouldn't automatically assume that buying a home is out of your reach. While many popular cities, such as San Francisco and Boston, are seeing home prices rising beyond most young people's budgets, plenty of other locations offer unique characteristics that make them perfect prospects for young home shoppers. If you're expecting to buy your first home in the years ahead, consider this list of great cities for first-time home buyers:

Austin, Tex.
Dallas
Denver
Des Moines
Grand Rapids
Minneapolis
New Orleans
Ogden, Utah
Salt Lake City
Seattle

Each boasts a significant population of millennials, promising job growth, affordable home prices and plentiful inventory.

Why This Apple Exec Is Wrong About Xiaomi

Jony Ive, Apple's (NASDAQ: AAPL  ) head of design, recently lashed out at Xiaomi Tech, the rising smartphone giant often called the "Apple of China". At a Vanity Fair conference, the designer of the iPhone, iPad, and iPod stated that he didn't consider Xiaomi's designs -- which many have compared to Apple's -- to be "flattery". "I think it's theft," he bluntly stated. "And it's lazy."

Source: Apple.

In response, Xiaomi president Bin Lin told China News Service that "one can only judge Xiaomi's gadgets after he or she has used them." Hugo Barra, Xiaomi's VP of international markets, added that the "iPhone 6 is using design language that HTC (NASDAQOTH: HTCCY  ) has had for five years" in an interview with the Economic Times. Barra also stated that Apple and Ive could not "claim full ownership" to design languages used across the smartphone industry.

Xiaomi has never shied away from comparisons to Apple. On stage, CEO Lei Jun dresses like Jobs with a black turtleneck and jeans, repeatedly references Apple and its suppliers, and even recently borrowed Apple's catchphrase "one more thing" for a presentation.

However, when we dig beneath the surface and compare the hardware, software, and business models of Apple and Xiaomi, the differences become much more apparent.

How Xiaomi's hardware and software is different from Apple's
The Mi 4 isn't really a copy of the iPhone 5s. Plenty of other Android smartphones -- like Sony's (NYSE: SNE  ) Xperia Z3 and Samsung's (NASDAQOTH: SSNLF  ) Galaxy Alpha -- also share some of the iPhone 5s' design aesthetics. However, Xiaomi's phones are nothing like the iPhone knockoffs (Android phones in a fake Apple case) which can still be easily bought in China.

Is the Mi 4 a copy of the iPhone 5S? Source: Company websites.

Apple itself has borrowed design aesthetics from its rivals in the past. The iPhone 6's chassis was clearly inspired by Google and LG's Nexus 4, which was launched in November 2013, and HTC's One M7 and M8, which arrived last year. The key difference, however, is that Apple actually packed less impressive hardware into the iPhone 6's chassis than its high-end Android competitors:

	CPU	RAM	Rear Camera	Screen	Battery	Price*
iPhone 6	1.4Ghz Dual-core	1GB	8-megapixel	4.7-inch	1,810 mAh	$649 (16GB) $749 (64GB) $849 (128GB)
Sony Xperia Z3	2.5Ghz Quad-core	3GB	20.7-megapixel	5.2-inch	3,100 mAh	$650 (16GB) $830 (32GB)
HTC One M8	2.5Ghz Quad-core	2GB	Dual 4-megapixel	5.0-inch	2,600 mAh	$550 (16GB) $820 (32GB)
Samsung Galaxy Alpha	1.8Ghz Quad-core	2GB	12-megapixel	4.7-inch	1,860 mAh	$700 (32GB)
Xiaomi Mi 4	2.5Ghz Quad-core	3GB	13-megapixel	5.0-inch	3,080 mAh	$320 (16GB) $390 (64GB)

Source: Industry and company websites. *Company and online retailer prices.

Although the iPhone's hardware clearly lags behind the competition, it continues to sell well since it is widely regarded as a status symbol. Other companies lacking that advantage -- like Sony, HTC, and Samsung -- are left to deal with Xiaomi, which sells a product with comparable or superior specs for a fraction of the price. Considering how different Xiaomi's hardware is from Apple's, it doesn't make much sense to call it an "iPhone clone."

Xiaomi's MIUI, a custom version of Android, is often criticized as being too similar to iOS, which Ive started designing with iOS 7. Yet those same criticisms are often levied against all forms of Android, including the stock version, Samsung's TouchWiz UI, HTC's Sense, and Sony's Xperia UI. Therefore, if Ive wants to accuse Xiaomi of theft, he really should point his finger at the entire high-end Android market.

L to R: Apple's iOS, Xiaomi's MIUI, and Samsung's TouchWiz UI.

Comparing Xiaomi and Apple's business models
Apple's business model is to make expensive looking phones with average hardware, then sell them at high margins. Xiaomi's business model is to sell expensive looking phones equipped with high-end hardware at low margins. That business model is clearly working -- Xiaomi became the world's fifth largest smartphone maker in July, and toppled Samsung as China's top smartphone maker in August.

Both companies spend a lot less on marketing than its rivals. Last year, Apple only spent $1.1 billion, or 0.6% of its revenue, on advertising. Xiaomi spends around 1%, while Samsung spends around 5%. Apple gets by with less ads thanks to its established reputation, while Xiaomi relies more on word of mouth advertising via the Internet. Apple's brick-and-mortar stores help it maintain its reputation, but Xiaomi mainly relies on online retailers which release its phones in limited batches to inflate demand.

Xiaomi has its own app marketplace in MIUI, which generated $4.9 million monthly from over 30 million users at the end of 2013. The marketplace offers Android apps, games, and customization themes for MIUI, and is aided by the fact that Google is mostly banned from selling paid Play apps in the country. In that regard, Xiaomi is a bit more like Amazon, which sells Kindles at razor-thin margins to generate revenue from digital purchases.

The Foolish takeaway
In closing, I'm not stating that Xiaomi is a great innovator -- it's clearly inspired by companies like Apple, HTC, and Samsung. But it's a bit reckless to accuse Xiaomi of theft, especially when Apple's iPhone 6 was also "inspired" by similar improvements. We should also remember that HTC and Samsung were called "copycats" for years, before they carved out their identities with more memorable designs.

Apple Watch revealed: The real winner is inside
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see where the real money is to be made, just click here!

Seadrill: ‘In a Bit of a Pickle,’ Credit Suisse Says

Shares of Seadrill (SDRL) have tumbled after Credit Suisse cut its rating on the offshore driller, noting that the company is “in a bit of a pickle.”

Bloomberg

Credit Suisse analyst Gregory Lewis and team explain why they downgraded Seadrill:

We are downgrading [Seadrill] to Neutral (from Outperform) and lowering our target price to $30 (from $40). [Seadrill] has a lot of wood to chop in terms of contracting newbuild rigs, paying for newbuild rigs and managing hefty debt repayments all under a backdrop of softening floater dayrates. [Seadrill] got a bit greedy, having misjudged the market, and now has 5 newbuild drillships, 2 newbuild semis and 8 newbuild jackups, all without contracts. It is our understanding the company is actively marketing some of its newbuild rigs for potential resale – which is never a good thing.

While [Seadrill] will continue to lean on [Seadrill Partners (SDLP)] and potentially [Ship Finance International (SFL)] to meet its funding requirements, a lot has to break right for [Seadrill] to meet these funding requirements.

Shares of Seadrill have dropped 2.7% to $32.99 at 2:33 p.m. today, while Seadrill Partners has dipped 0.3% to $28.94 and Ship Finance International has fallen 2% to $16.86. Transocean (RIG), which has adopted something of a Seadrill model, has fallen 2.7% to $39.51.

The European Crisis Is Going Global – and We're Along for the Ride

After printing $4 trillion since 2008, we've little to show for it.

Endless debates about the effectiveness of QE, or its lack thereof, haven't spawned better decisions, especially in Europe. Think periphery nations like Greece, Spain, Portugal, and Italy.

Better yet, take a look at the stock market, where worries about Europe's economy rattled investors. It's certainly not a pretty picture...

Recently one European national leader offered a somewhat unique response for dealing with the financial crisis and debt bubble.

It appears an unorthodox, yet sound, approach on the surface. But when you scratch beneath, it turns out just the opposite is true.

Developed economies would do well to consider the true state of this country's example of a "model" recovery before an even more catastrophic, debt-ridden future arrives, and erupts...

Iceland Isn't Greece... It's Worse

The country I'm talking about is Iceland. 

With a population of just under 320,000, its economy lacks diversity, with fishing, aluminum, and energy as its dominant sectors.

Something it does have is the world's oldest functioning legislative assembly, the Alþingi, established in the year 930. That's a long time to have practiced democracy.

You'd expect that experience could have saved this tiny country's economy, but as it turns out Iceland has a lot more in common with the birthplace of democracy: Greece.

And unfortunately, the parallels are eerily similar.

Greek households, it's estimated, have lost $215 billion of wealth in the last seven years.  Unemployment still runs near 27% with 44% of incomes below the poverty line.

Debt to GDP currently sits at 175% (EU's highest) and its latest annual deficit is 12.7%. 

Bailed out by $332 billion in "rescue" loans from the European Union and International Monetary Fund, Greece is now saddled with a national debt of $470 billion. That's nearly half a trillion dollars, for a nation whose economy represents 1.4% of the entire EU.  

Most of that money, by the way, goes to repay mainly German and French banks that were highly invested in Greek debt. The country's output has shrunk by a staggering 25% in the last six years.

This didn't have to happen to Greece. So why did it?

When Greece over-borrowed and over-spent in the past, it had its own currency, the drachma.  So, floating exchange rates with other currencies effectively devalued the drachma, which decreased domestic demand for pricier imports. It also lowered the costs of Greek labor and exports, spurring foreign investment in the country, as well as tourism.

It was the free market at work - Adam Smith's classic "invisible hand," as it were. But now Greece is handcuffed with the euro as its currency. That's a large reason things went south in Greece; devaluing its currency is no longer an option.   

So the Greeks will instead suffer under austerity for years, perhaps generations, along with a shrinking economy and soaring unemployment.

The "Opposite" Road to Recovery for the Icelandic Economy

Iceland, however, took the opposite route... sort of.

In 2008, overextended Icelandic banks also collapsed under the weight of their inflated mortgage "assets." Its financial sector shrank to a mere fifth of its former self. 

The country let its banks fail and imposed capital controls. Deposits held in Iceland by foreigners are stuck. Foreign-held bank debt was sacrificed.

Some bankers were investigated and then charged with fraud; at least one went to jail.

Iceland was able to take a different route because it has sovereignty and could decide its own future. 

The Icelandic krona dropped in value by half, its people accepted agonizing reforms, and the economy has posted better than 3% growth. There's even a risk the economy is overheating, with forecasts for 2014 and 2015 of 3.1% and 3.4% growth respectively.

Not being part of the EU and having its own currency allowed Iceland to make its own rules and decisions.

On the surface, Iceland appeared to do what Greece had done in the past when it used the drachma - default and devalue.

Or so it seemed...

Instead of austerity, Icelandic politicians resorted to capital controls.

The nation's central bank took on a massive IMF bailout in order to help (somewhat) prop up the krona. That's why Iceland's "recovery" from the crisis looks so impressive, for now.

But the bailout has caused national debt to triple, with currently over 17% of taxes going to pay its interest alone. Unemployment is low, but so are living standards, while prices have skyrocketed with inflation. And the now much weaker currency makes for costly imports, a needed lifeline for this tiny - and remote - nation.

Real estate prices have been devastated thanks to vanishing demand and high mortgage rates, leaving homeowners to deal with negative amortization loans. Remember those?

The IMF would like us to believe Iceland's debt-to-GDP is at a manageable 84%.

At the Clinton Global Initiative Symposium in New York, Iceland's President Ólafur Ragnar Grímsson said "When you look at Iceland and how we have recovered in six years, we have recovered more than any other European country that suffered from the financial crisis."

Things looked so good, Iceland lost its appetite to join EU, even withdrawing its negotiating team from discussions. But Grímsson failed to mention that debt-to-GDP is 221% when you count outstanding bank liabilities. On that basis, only one country is worse: Japan at 227%.  Even Greece is better at 175%.

The Nordic nation's top central banker has raised the idea of relaxing capital controls. But foreigners hold some $7.4 billion in Icelandic accounts, and many would want to leave, exposing banks to serious risks.

This "Volcanic" Eruption Will Rip Through Markets

Iceland has already endured difficult economic times, but its massively inflated debt has only softened the blow for the time being. The country is still running annual budget deficits, so odds are increasing they'll have to eventually default on a crushing debt load.

What lessons can we learn from all of this? 

What Jim Rickards said about Iceland in The Death of Money holds true for the United States: "...They should have accepted considerable short-term pain and administered real structural reform rather than just paper over with still more debt." 

That would have led to a true and robust recovery with capital properly allocated, instead of being misdirected thanks to artificially low rates.

As it turns out, despite a somewhat different approach, Iceland is actually no better off than anywhere else. And it's only a matter of time before its economy erupts like the country's second-highest peak: the volcano Bárðarbunga.  

Here's the thing... we're now all sitting under a similar "volcano."