NEW YORK (TheStreet) -- Glu Mobile (GLUU) shares are up 2.6% to $6.69 in trading on Friday following a Seeking Alpha report suggesting that the company remains undervalued when compared it to its industry peers.
The mobile gaming company profile has risen based on the runaway success of its Kim Kardashian based game "Kim Kardashian: Hollywood."
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Glu's success is based on a model that allows the company to create sequels to games at a low build cost due to the fact that the gaming engine is already in place, according to the article.
Couple that with the fact that the game sequels have a built in fan base and a halo effect that sees previous releases gain downloads from new releases, Glu Mobile may be poised for an even higher run than it has already experienced.
TheStreet Ratings team rates GLU MOBILE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLU MOBILE INC (GLUU) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its disappointing return on equity."