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Technology Stocks : MetaCreations (MCRE) - Detailed Goo in a Soapy Dream

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To: shahn who wrote (274)9/25/1997 3:07:00 PM
From: earthling   of 846
 
Everybody predicted that MCRE would rise in the closing months of the year. The new quarter was going to be the first "clean" one anyway, and fortunately it coincides with the normal fall season upsurge in sales and the special rebound that occurred because of the Apple announcements. Fortunately, MCRE reports one month later than Adobe, so it gets an additional month of those stronger sales than Adobe got. Finally, there's the Seybold effect. And of course the OEM deals.

Still, something else seems to be going on. Adobe recently annouced major steps to prop up its stock price via a 2-year buy-back program. Is that a positioning move to prepare for a major acquisition? There have been published rumors about Adobe acquiring Macromedia. But Adobe acquiring MetaCreations makes great sense. MCRE just has too many brilliant programmers for such a small company. And Adobe's marketing machine would really go to town with products like Goo, Painter, and Ray Dream. Strategically, it would get Adobe into 3D. Adobe has enough cash to buy MetaCreations twice over (though they would use a stock swap, not cash). Just think of what an incredible addition it would be to Adobe to get MCRE on board!
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