MAJESCO ENTERTAINMENT COMPANY

COOL : NASDAQ

CHUTINUSH TAKSINAPINUNT

Date: 04/02/2011

Symbol: COOL

Exchange: NASDAQ

Industry: Multimedia& Graphics Software

Sector: Technology

Recommendation:

Target Price: 3.00USD

Current Price: 1.36 USD

Summary

• Doubts over the NASDAQ listing are finished

• Conservative 2011 Guidance likely to be outperformed

• Hot sector with very strong growth

• Expansion of market, platform and product seen in 2011

Fundamental Data

Market Cap ($M): 51.08

Avg.Vol (10Day): 379,395

52 Week High/Low: 1.48-0.49

P/E ratio (TTM): N/A

P/B ratio: 4.25

Dividend yield (%): N/A

ROA (%): -1.46

ROE (%): -8.19

Profit Margin (%): -1.29

Operating Margin (%): -0.90

SUMMARY

INTRA-DAY INTERACTIVE CHART

Change 0.060 (4.615%)

Bid 0.500

Ask 1.430

Open 1.430

High 1.480

Low 1.240

Volume N.A.

52-Week Range 1.48 - 0.49

1-Yr Return 60.000%

Earnings EARNINGS

FUNDAMENTALS

Earnings Past 12 Months -0.026 Shares (Millions) 39.520

Quarter Est. EPS (01/11) 0.11 Market Cap (Millions) 53.747

Quarter Est. EPS (04/11) -0.01 Float (Millions) 32.327

Year Est. EPS (10/11) 0.14 Return on Equity -8.193

Price/Earnings (Trailing) N.A. Short Interest 65,978.000

Relative P/E N.A. Last Dividend Reported N.A.

Earnings Growth Rate 120.800 Dividend Yield (ttm) N.A.

Estimated P/E 52.000 Relative Dividend Yield N.A.

Majesco Entertainment Company

We are an innovative provider of video games for the mass market, focused on developing and publishing a wide range of casual and family oriented titles on leading console and portable systems. Our diverse product portfolio provides us with multiple opportunities to capitalize on the large and growing installed base of digital entertainment platforms and an increasing number of digital entertainment enthusiasts. Over our 22 year history we have developed strong retail and distribution network relationships that enable us to sell our products to U.S. retail chains, including Wal-Mart, GameStop, Best Buy, Target and Toys 'R Us.

We publish video games for almost all major current generation interactive entertainment hardware platforms, including Nintendo's DS, Game Boy Advance, or GBA and Wii, Sony's PlayStation 2, or PS2, and PlayStation Portable, or PSP ® , Microsoft's Xbox and Xbox 360 and the personal computer, or PC. In addition, we manufacture and market stand alone plug and play video game systems and peripheral devices targeted at the mass market.

Latest News

Majesco Entertainment Regains Full Compliance With NASDAQ $1.00 Minimum Bid Requirement

EDISON, N.J., Jan. 31, 2011 /PRNewswire/ -- Majesco Entertainment Company (Nasdaq: COOL), an innovative provider of video games for the mass market, announced today that on January 28, 2011, it received a letter from the Nasdaq Stock Market indicating that the Company had regained compliance with Listing Rule 5550(a)(2) as the closing bid price of the Company's common stock had

been at $1.00 per share or greater for at least 10 consecutive business days. On March 2, 2010, the Company was notified that its common stock failed to maintain a minimum bid price of $1.00 for 30 consecutive business days. The letter received on January 28, 2011 further stated that this matter is now closed. The company is now in full compliance with Nasdaq listing requirements.

Majesco Entertainment Announces 'Cake Mania Main Street' for Nintendo DS™

Fourth Installment of the Best-Selling Franchise is Due Out This Spring

EDISON, N.J., Jan. 25, 2011 /PRNewswire/ -- Jill Evans knows what her customers want, especially in her own hometown! Majesco Entertainment Company (Nasdaq: COOL), an innovative provider of video games for the mass market, and Sandlot Games Corporation, one of the world's leading developers of Casual Games for multiple platforms, today announced Cake Mania Main Street® for Nintendo DS™. With more than 200 million downloads across the series, Cake Mania is among the most successful online PC game franchises of all time. That success has translated into the handheld market with more than 700,000 copies sold worldwide. Now, the franchise's fourth Nintendo DS installment brings the mania back to Bakersfield as Jill and her friends franticly work to revitalize Main Street and save their hometown.

(Photo: http://photos.prnewswire.com/prnh/20110125/NY35517 )

Cake Mania Main Street boasts 100 levels of fast-paced gameplay marked by the series' signature time management mechanic. For the first time ever, players can expand beyond the bakery and upgrade equipment within new shops including Jack's Burger Barn, Risha's Flowers and Tiny's Sumo Sushi. These new downtown businesses boast more than 50 upgrades each that players can purchase with cash earned from hilarious new customers. Players can also buy up to 40 delicious, mouth-watering recipes with more than 35 unique ingredients that will keep customers coming back for more.

Developed by Sandlot Games, Cake Mania Main Street is expected to release this spring. For additional information about Majesco's entire line of products, please visit www.majescoentertainment.com.

MAJESCO ENTERTAINMENT ANNOUNCES SUPPORT FOR NINTENDO 3DS WITH TWO NEW GAMES: 'PET ZOMBIES IN 3D' AND 'FACE KART: PHOTO FINISH'

"Undead" Pet Simulation Game and Arcade Style Racer Due Out This Fall

EDISON, N.J, January 18, 2011 - Majesco Entertainment Company (NASDAQ: COOL), an innovative provider of video games for the mass market, today announced both Pet Zombies in 3D and Face Kart: Photo Finish exclusively for Nintendo 3DS. Pet Zombies in 3D lets players reanimate their very own zombies with a range of customizations and then care for (or torment!) their pets as they play with them in creepy 3D environments. Face Kart: Photo Finish literally puts YOU in the driver's seat of an arcade

style kart racer; players take photos of their face with their Nintendo 3DS camera and use them as avatars for their custom 3D racers, billboards and power-ups.

"We're incredibly excited about the potential of the Nintendo 3DS," said Jesse Sutton, Chief Executive Officer, Majesco Entertainment. "Nintendo continues to innovate and Majesco is committed to being a leader in supporting this new device with products that offer consumers engaging and fun interactive entertainment experiences. We look forward to sharing additional Nintendo 3DS product announcements shortly."

Developed by 1st Playable Productions, Pet Zombies in 3D lets players raise their very own decaying human pets by managing their

special dietary preferences (brains and the like), bodily maintenance (or lack thereof) and morbid activities needed to keep them happily undead. Players can choose to play with, care for, or even mischievously torment their zombies in creepy locations like cemeteries, evacuated malls or rundown military bases. Each 3D environment is customizable with mix-and-match objects, themed backdrops and even music to best fit each pet zombie's personality and tastes. Throughout the game, players can discover new zombies to add to their horde and customize them with facial bone deformations, variable decay, clothing and unlockable items. Players will also use the Nintendo 3DS accelerometer controls in various activities, including rolling zombie heads through mazes,

and can earn trophies and in-game currency to spend in the Zombie Pet Shop.

Developed by Renegade Kid, Face Kart: Photo Finish lets players tilt and turn the Nintendo 3DS to steer their photo customized

speedsters through 20 unique race tracks, as they drift around corners, soar over chasms and speed past the competition. Players use the Nintendo 3DS camera to snap their own picture and then map it onto their avatar, the landscape or even a turbo boost so they can pick up their very own power-ups as they race. Each avatar offers up to one hundred choices in hair, clothing and eyewear,

plus cars can also be customized by tuning and tweaking to create the ultimate personalized racer.

Pet Zombies in 3D and Face Kart: Photo Finish for Nintendo 3DS are both expected to release this fall. For additional information

about Majesco's exciting line of products, please visit http://www.majescoentertainment.com/.

Majesco Entertainment Co. Issues FY 2011 Guidance Below Analysts' Estimates Tuesday, 18 Jan 2011 04:00pm EST

Majesco Entertainment Co. announced that for fiscal 2011, it expects net revenue in a range of $85-$90 million, and non-GAAP earnings per share (EPS) of $0.06 to $0.10. The Company's guidance assumes the release of approximately 19 SKUs in 2011, including six for the 3DS, four for Kinect for the Xbox 360, three for Wii and three for DS. According to Reuters Estimates, analysts were expecting the Company to report EPS of $0.15 on revenues of $105 million for fiscal 2011.

REVENUE

Periods 2009 2010

January 32.82 29.206

April 20.548 10.906

July 17.183 12.153

October 23.901 23.383

Note: Units in Millions of U.S. Dollars

EARNINGS PER SHARE

Periods 2009 2010

January 0.14907 0.10337

April -0.05952 -0.04358

July -0.17728 -0.04448

October -0.13518 -0.04071

Note: Units in U.S. Dollars

CONSENSUS ESTIMATES ANALYSIS

# of Estimates Mean High Low 1 Year Ago

SALES (in millions)

Quarter Ending ������54 2 15.25 16.00 14.50 22.30

Quarter Ending �����54 2 16.50 17.00 16.00 22.20

Year Ending �����54 2 95.00 95.00 95.00 92.50

Year Ending �����55 2 113.50 115.00 112.00 --

EARNINGS (per share)

Quarter Ending ������54 2 -0.01 -0.01 -0.01 0.05

Quarter Ending �����54 1 0.00 0.00 0.00 0.03

Year Ending �����54 2 0.14 0.17 0.11 0.14

Year Ending �����55 2 0.22 0.23 0.20 --

Sales and Earnings Figures in U.S. Dollars (USD)

VALUATION RATIOS

Company Industry Sector S&P 500

P/E Ratio (TTM) -- 18.07 10.47 17.15

P/E High - Last 5 Yrs. 4.52 25.27 41.46 48.15

P/E Low - Last 5 Yrs. 4.52 12.96 10.39 12.69

Beta 1.39 0.97 0.95 1.29

Price to Sales (TTM) 0.65 2.00 1.12 2.21

Price to Book (MRQ) 4.06 2.01 0.81 3.73

Price to Tangible Book (MRQ) 4.08 2.32 1.03 10.02

Price to Cash Flow (TTM) 8.52 15.44 4.71 8.36

Price to Free Cash Flow (TTM) -- 39.47 7.96 49.91

% Owned Institutions -- -- -- --

DIVIDENDS

Company Industry Sector S&P 500

Dividend Yield -- 3.13 0.87 1.59

Dividend Yield - 5 Year Avg. -- 2.44 1.36 2.25

Dividend 5 Year Growth Rate -- 18.55 1.69 -5.02

Payout Ratio(TTM) -- 58.99 11.78 29.78

GROWTH RATES

Company Industry Sector S&P 500

Sales (MRQ) vs Qtr. 1 Yr. Ago -2.17 -24.71 4.59 11.70

Sales (TTM) vs TTM 1 Yr. Ago -19.91 -12.32 6.56 11.47

Sales - 5 Yr. Growth Rate 4.84 15.57 9.36 7.75

EPS (MRQ) vs Qtr. 1 Yr. Ago 69.88 32.30 192.89 59.86

EPS (TTM) vs TTM 1 Yr. Ago 89.33 -- -- --

EPS - 5 Yr. Growth Rate -- 13.16 1.96 4.91

Capital Spending - 5 Yr. Growth Rate -8.90 33.08 4.79 4.72

FINANCIAL STRENGTH

Company Industry Sector S&P 500

Quick Ratio (MRQ) 1.18 3.50 0.55 0.63

Current Ratio (MRQ) 1.65 4.02 0.71 0.96

LT Debt to Equity (MRQ) -- 5.38 23.82 107.74

Total Debt to Equity (MRQ) -- 7.89 37.25 152.28

Interest Coverage (TTM) -1.63 -0.03 0.11 14.04

PROFITABILITY RATIOS

Company Industry Sector S&P 500

Gross Margin (TTM) 24.30 39.46 10.44 31.81

Gross Margin - 5 Yr. Avg. 28.86 37.12 24.02 29.39

EBITD Margin (TTM) 6.10 -- -- --

EBITD - 5 Yr. Avg 8.25 21.50 10.17 18.46

Operating Margin (TTM) -2.79 18.82 -0.58 --

Operating Margin - 5 Yr. Avg. -3.62 19.55 5.23 15.05

Pre-Tax Margin (TTM) -3.47 15.75 -0.60 15.21

Pre-Tax Margin - 5 Yr. Avg. -5.03 19.54 5.05 14.68

Net Profit Margin (TTM) -1.28 10.17 -1.48 11.17

Net Profit Margin - 5 Yr. Avg. -4.25 11.96 3.39 10.84

Effective Tax Rate (TTM) -- 27.62 14.24 20.07

Effecitve Tax Rate - 5 Yr. Avg. -- 35.76 31.99 24.93

EFFICIENCY

Company Industry Sector S&P 500

Revenue/Employee (TTM) -- 203,823,735 19,900,897 560,452

Net Income/Employee (TTM) -- 24,437,552 1,025,870 66,708

Receivable Turnover (TTM) 37.78 10.34 10.33 9.60

Inventory Turnover (TTM) 7.84 5.63 4.24 6.25

Asset Turnover (TTM) 2.58 0.85 0.34 0.54

MANAGEMENT EFFECTIVENESS

Company Industry Sector S&P 500

Return on Assets (TTM) -3.32 8.23 1.44 5.85

Return on Assets - 5 Yr. Avg. -13.13 9.92 3.37 5.63

Return on Investment (TTM) -7.94 10.81 2.18 7.51

Return on Investment - 5 Yr. Avg. -44.02 13.51 5.99 7.35

Return on Equity (TTM) -8.19 11.72 4.36 15.86

Return on Equity - 5 Yr. Avg. -47.32 14.08 8.74 7.73

Powered By Reuters and Bloomberg

Contact Detail:

Chutinush Taksinapinunt

Business Development Director

Heffernan Capital Management

Email: chutinush@heffernan-inc.com

Chutinush Taksinapinunt holds a Bachelor of Business Administrators degree Majoring in Finance and Banking. Chutinush Taksinapinunt is an experienced market maker and Portfolio Manager, having worked with some of Thailand’s largest Securities Company and Financial Institutions.

Price Estimate by Shayne Heffernan PhD

Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com Bangkok Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND Tel: +66 2 126 8000 Fax: +66 2 126 8080 New York 347 5th Avenue, Suite 1402-508 Ny, NY 10016 Tel: +1 646-403-9881 Fax: +1 646-403-8014 Singapore 3 Raffles Place #07-01 Bharat Building Singapore 048617 Tel: +65 6329 6408Fax: +65 6329 9699

Disclaimer

Ebeling Heffernan (EH) distributes research and other information purchased and compiled from outside sources and analysts. This report/release/advertisement is a commercial advertisement and is for general information purposes only. Do not base any investment decision on information in this report/release/advertisement. EH is not a registered Investment Advisor or a member of any association for other research providers. Under no circumstances is this report/release/advertisement to be used or considered as an offer to sell or a solicitation of any offer to buy any security or other debt instruments, or any options, futures or other derivatives related to such securities herein. All information herein is not intended to be used for investment advice. Price Targets are academic theory and should not be relied upon. The majority of these profiled companies are highly risky OTC Bulletin Board or Pink Sheet companies. All readers of this information indemnify EH from any liability for all accessed information. EH will not be responsible for updating any of its information in its report/release/advertisements. EH advises recipients of all such data to be validated from the issuing company including all statistical information derived from SEC filings, from data sources or financial information and data from the issuing company contained herein. The reader should seek professional financial advice, verify all claims and do his/her own research and due diligence before investing in any securities mentioned. EH will not be liable to any person or entity for the quality, accuracy, completeness, reliability or timeliness of information in this report/release/advertisement, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information, products or services from any person or entity including but not limited to lost profits, loss of opportunities, trading losses, and damages that may result from any incompleteness or inaccuracy in any of EH’s profiled companies. When paid in stock, EH its affiliates, directors, officers, outside sources, investor awareness groups and employees may liquidate shares at any time or hold for investment purposes. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D, www.sec.gov.nasd.com, www.pinksheets.com, www.sec.gov and www.finra.com. SPC is compliant with the Can Spam Act of 2003. Investing in micro cap and small cap securities is speculative and carries a high degree of risk. Investors can lose their entire investment. The Private Securities Litigation Reform Act of 1995 provides investors a 'safe harbor' in regard to forward-looking statements. EH cautions all investors that such forward-looking statements in this report/release/advertisement are not guarantees of future performance. Investors should understand that statements regarding future prospects may not be realized. This report/release/advertisement does not have regard to the specific investment objective, financial situation, suitability, and the particular need of any specific person who may receive this report/release/advertisement. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall substantially. Accordingly, investors may receive back less than originally invested, or lose their entire investment. Past performance is not indicative of future performance. The Company has not paid compensation for this commercial advertisement. HCM. has written this commercial advertisement for EH.