After a slide in price that began last April, Mad Catz insiders clearly think the company’s current share price is out of tune. Last week, several of them bought shares in the open market. It’s been a tough stretch for shareholders of Mad Catz Interactive (TSX:MCZ), but insiders think a stock slide that began last April, when shares of the company peaked at $2.10, has run it course.
Whitney Peterson, the company’s Vice President Corporate Development, picked up 52,608 shares between June 15th and June 20th, at prices between $.51 and $.54 cents. Robert Molyneux, an Independent Director of Mad Catz, bought 12,500 shares at $.54 cents on June 18th.
And the company’s Chairman, Thomas Brown, picked up 12,200 shares at $.54 cents on June 22nd, and another 7800 at $.48 cents the same day.
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Mad Catz, which was founded in 1989 and is now based in San Diego, designs and markets accessories for video game systems. The company has designed products for all major video game platforms, including a deal with Fender to design a Stratocaster guitar controller for Rock Band 3, and Gears of War 3 audio products for the Xbox 360. The company more than doubled its revenue from $87.7-million in 2009 to $183.9-million in fiscal 2011, before taking a step backward in 2012, when sales fell 36% to $117.6-million.
Earlier this month, Mad Catz announced a deal with Microsoft Studios to create Halo 4 branded gaming headsets, which will be released later in 2012. The deal was the most recent in a relationship between the two companies actually stretches back nearly a decade, when they worked on an microphone and microphone adapter for the Xbox in 2003.
Shares of Mad Catz on the TSX closed Friday even at $.56 cents.