Sergio,
Here is the analyst comments. Turok is going to be pretty huge this quarter. Should start seeing the advertising for it around August 1st. Sales were under slightly but they were in the bottom range of earnings. Look at the sales and earnings growth they are forecasting. I think it is possible given how many Cube,Box, PS gamesets that continue to be sold. The market for games just keeps expanding.
Friday June 28, 12:00 pm Eastern Time
Reuters Company News
RESEARCH ALERT-UBS Warburg cuts Acclaim to 'hold'
NEW YORK, June 28 (Reuters) - UBS Warburg on Friday said it cut its investment rating on video game publisher Acclaim Entertainment Inc. (NasdaqSC:AKLM - News) to "hold" from "buy" and reduced his 12-month price target to $4.30 a share from $8.50.
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Analyst Mike Wallace, in a research note, said third-quarter revenues were less than expected and fourth-quarter results should be dependent on one title, Turok, since the others have not emerged as major games.
He also said the company's reserves are lower and its day-sales-outstanding higher than those of other companies, raising questions about earnings equality that need to be addressed.
"We would wait on the stock here," Wallace wrote, saying a lukewarm reception to either Turok, which ships in late August, and/or Vexx, which ships in October, means the stock will be stuck at current levels.
Acclaim shares closed Thursday at $4.41 a share |
