Majesco Entertainment (NASDAQ:COOL) Pulling Back After Running Up

Majesco Entertainment (NASDAQ:COOL) has soared since the middle of December, rising from $0.66 to $1.45 during that time.

The company in fact did pull back on Wednesday, falling from $1.40 to end the day at $1.12, a 20 percent plunge.

Needham noted early in the session, "COOL reported sales and EPS for 4Q'10 (ended 10/31/10) that were below our estimates, which, given industry weakness during the holidays, is not too surprising. COOL's recent rise is based on anticipation of very strong sales in Q1 of FY2011, driven by a few key titles. We expect FY2'11 to show significant improvement over 2010, but to be front-end loaded, as is typical with Q1 falling over the holiday season. We believe the stock remains attractive, but that given the recent strong runup, we would not be surprised to see a pull-back."

Even so, Needham reiterates their "Buy" rating on Majesco Entertainment (COOL), and have a price target of $1.50 on them.