For every step in the innovation of technology, there have been early adopters. They mostly find success while late adopters find moderate success. Non-adopters mostly die out.
Introducing one of the leading investors in the future, Japan’s Colopl Inc (TYO:3668) is an entertainment company focused on mobile games. They’re the leading developer of virtual reality games too. Colopl stock is one of the best ways to invest in VR technology.
The most famous example of failure to adopt a new technology would be the classic tale of Kodak. They were once the world’s leading film photography brand. Kodak failed to accurately gauge the significance of new technology and have now faded away.
The early bird truly gets the worm in the information age. With the advent of social media, Facebook came first and is now dominating web platforms. Similarly, with mobile messaging over data, Whatsapp is the leader with the most number of active users throughout the world.
We expect the same of virtual reality, gaming’s newest technology. In fact, the gaming VR market is predicted to have a US$5 billion valuation by 2020 according to a Superdata report.
Colopl Inc. is taking the lead in the VR gaming industry having just established the largest virtual reality fund of US$50 million for companies working on head-mounted displays, games and 360 degree content, development tools and equipment, and distribution platforms.
Colopl Stock: Invest in Virtual Reality
Represented by its mascot, Kuma the brown bear, Colopl is an abbreviation for the original name of the company, “Colony Life Plus.” They focus on the high-performance mobile phone business and bringing customers more content-rich entertainment.
The company’s products and services revolve mostly around mobile games. Colopl’s business is segmented into four parts. They include domestic mobile games services, overseas mobile games services, VR service, and other services.
Even though it is mainly a smartphone-based business, Colopl Inc. is keeping a close watch on the VR market. They’ve already taken initiatives to develop VR games.
There are two main reasons why InvestAsian believes that you should invest in Colopl stock. First of all, it’s very profitable. With a total revenue of over 23 billion yen (around US$220 million) Colopl stock boasts an incredibly high net profit margin of 26.8%. High profit is due to the low cost nature of distributing digital content.
Secondly, the company has great returns and attractive valuations. Performance has led to a ROI and ROE of over 50%, along with an ROA of 36%. Colopl looks to be even more profitable in the future with its investment into VR gaming as well. All of this along with Colopl stock’s low P/E ratio of 12, and seeing little analyst coverage, makes it a great buy for your portfolio.
Want to invest in the Japanese stock market? You might also want to look at InvestAsian’s analysis of Info Mart stock.
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