TSE: 400k shares were moved in house at Griffiths. 300k on the 30th and 100k on the 31st. It shows up as volume, but it has not been sold into the market. Over the two days Merrill sold just over 17k. Yeah, so? Canaccord bought 20k on the 30th, does that mean anything? who knows?. I wouldn't read much into it. Maybe someone else can shed some light on these questions.
Touting the success of Pooh by way of NR won't help the stock much now. The market wants to hear these guys have cash and they want to hear it soon. (You can bet they're telling the bankers all about it though.)
NKC does all their business cash up front. First, they buy (bid) for the titles, then develop the games. The money they invested in titles last year grossed 22mil and netted over 2mil. A good return imo. LAST YEARS PROFIT, THOUGH RESPECTABLE, WILL NOT BUY NEW TITLES. THAT IS WHY THEY HAVE TO RAISE CASH. They can't sit back on last years titles and hope to achieve revenue growth by selling the same titles into an expanding market. They need new characters. If they can generate the same return from cash they raise this year, we'll have good growth with similar margins as '99.... you do the math; shareholders will be very happy.
The company was blind sided by the Mattel crisis and then the market pullback. Had they raised cash a couple of months ago, and then announced talks with MSFT, with a big cash position, the stock would still be quite healthy. Coulda, shoulda, didn't.
Now, there is an issue with paying the licenses. Common sense would have that they are (hopefully) diligently paying the successful titles, and holding back on the dogs. Natures way of culling the herd.
If product is indeed selling well, Q1 revenues were low because retailers had inventory left on the shelf after Christmas. The company books sales when they ship the product, not when retail sales occur. Q2 revenue should look better, esp. given Pooh is selling like hot cakes. My one concern is the amount held back for markdowns as a result of the Mattel crisis. It seems a bit high, and might indicate that retailers have a lot of inventory kicking around.
I'm itching to buy, but I'm not sure the selling is over. I only hope we are near bottom. You never know who could be screwing with the stock under these curcumstances, look what happened with corel.
With all due respect, 'e,we', or should I say 'wee', perhaps you could excersise better judgement and a little restraint before you edit, and repost a company filing. We know for sure of one investor who is 'outa here' after deciding the company was on the verge of bankruptcy after reading your post. Nice work.
There is significant risk going forward, but we should know soon how this will unfold.
my humble opinions of course, tj. |
