Glu Mobile (GLUU) ended the week at $1.97 and is an absolute buy. Any time the stock trades below $2, the mobile game developer is a steal. The investment story is pretty simple. Glu Mobile has an enterprise value of around $200 million (using the forecast for cash dipping to $60 million at year end) and the booking forecasts are up at $220 million for 2017. The company has a lot of valuable IP and potential hit games. The thesis is simply that the stock is like a call option on any future game hit or buyout by Tencent (TCEHY). When Glu Mobile dips below an EV/Sales multiple of 1x, buy the stock. The key is to not chase the stock on those moves above $2.50 like prior to the recent Q4 earnings call. Buy the dips, sell the rips (if so inclined). Disclosure: Long GLUU