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Technology Stocks : Microprose, MPRS

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To: Richard Makowiec who wrote (189)2/5/1998 9:22:00 PM
From: Dan Spillane  Read Replies (2) of 633
 
The disaster here already happened. What Wall Street looks for -- if they look at all -- is momentum picking up for the future.

If you look at the relative number of titles with high sales potential (higher margin internal names by the way) targeted over the next few months there appears to be increased momentum. "M1 Tank" and "Falcon 4.0" have excellent pre-reviews. Further, Microprose simply doesn't yet have enough information on the sales of "Worms 2" nor "Duels/Magic Internet" for the current quarter. So they really can't be positive for the current quarter because they don't have real data yet. At best, only one new title (Worms 2) has been out for a few weeks. The rest is still coming.

At worse, this stock should trade at 1x sales of the current quarter (annualized comes to 60 million), which explains the apparent bottom at around two dollars a share (2 x 30 million shares = 60m).

You own this stock either on the prospects for recovery due to new software releases, or buyout potential. Otherwise, you have already dumped it.

Dan
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