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Microcap & Penny Stocks : Advance Gaming Technologies Inc. (AGTI)
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To: Evan Dimmer who wrote (1930)4/11/1998 9:27:00 AM
From: jmhollen  Read Replies (1) of 4539
 
I sure would like an answer to the following:

-------------------------------------------------------------

The following post was made just after the "sega" press release. I would like to hear
others' opinions/experience on these thoughts.

Still painfully long AGTI,
roucis
_________________________________________

Fellow AGTI shareholders,

I wanted to take the time to comment on today's press release and offer an educated
opinion as to my long term outlook for AGTI based on what we currently know.

1: The formation of a new entity is the single most significant piece of information on
today's press release and I was surprised no one has commented on it thus far. In my
business experience, the formation of a separate company that "licences" the technology
to market, manufacture and distribute a product developed by the parent company
(which WE FUNDED!) is a classic technique to ensure higher profit
margins for founders/insiders. The new "company" typically is funded by two contracting
companies (i.e., AGTI & SEGA) and is held PRIVATELY (IF YOU WANT A
CURRENT EXAMPLE JUST LOOK AT VISX & BEAM!). This could have a
serious impact on the LONG TERM OUTLOOK of AGTI's stock value---The "new
entity" is created to control accounts receiveable and then skim licensing fees back to
the parent company holding the patents/technology. What percentage
will
that be of the profits/gross? We don't know and I wouldn't be surprised if we are kept
in the dark for quite some time.

2: Have any of you correlated the way the stock has been behaving the few weeks prior
to this press release? Obviously, this is NOT day trader activity. What I do believe is
that it is indicatve to AGTI's REG-S shares being blown by outside services and
resources given AGTI stock as compensation. My biggest concern is that because these
people are highly knowledgeable about the internal fundamentals of AGTI, wouldn't it
make sense that if they
felt postitive about the company's direction, they would hang on to their shares or at
least some of them?

My long term outlook?

BEST CASE SCENARIO: We start to see some numbers from current contractual
arrangements and a solid and not to distant explanation as to how this new "entity" will
licence and pay for AGTI technology. This is key.

WORST CASE SCENARIO: AGTI uses the formation of this new "entity" as a slick
way to avoid their fiduciary duties to their shareholders, debtholders and investors.

BOTTOM LINE: I, for one, would like to see a follow-up press release explaining
some of the misleading information contained today's release and a meaningful explaining
of the separate company to be formed.

FWIW, roucis

ps: you may post this on SI thread if you like and thank you all for your participation on
this thread.
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