eidos--maker of Tomb Raider Message Board

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Technology Stocks : eidos--maker of Tomb Raider

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To: Bleeker who wrote (1150)	7/29/1998 10:29:00 AM
From: hl	Read Replies (1) of 1773

I agree, the only reason of the current weakness in EIDSYs stockprice which makes some sense to me is the uncertainty about a possible merger. EIDSY now has net current assets of around 85 mill. $. A share issue that this low price is unlikely given the possible dilution of shareholders interests, so what are their possible moves: - selling their 15 % stake in Norwegian Opticom which should generate 35 mill. $ in cash (bad move I think given Opticoms outlook; Note: I also own some Opticom shares) - increase their debt (also rather bad, this will make them more vulnerable to possible weak sales and industry downturns) - don't consider such a big aquisition like Psygnosis or Virgin. Speaking of aquisitions: no one mentioned the publicly traded UK computer game developer and publisher SCi PLC so far (stands for "Sales Curve Interactive"). They are the publishers of last years famous action programs Carmageddon and SW1V 3D. They are profitable, have promising publishing agreements (with Stainless Software for example) a good pipeline (Carmageddon II is coming out soon) and the best of all: Their valuation on the London Stock market is only 17 mill. $ which should be no problem for EIDSY with a all cash deal. So my advice to EIDSY is: if you want to make an aquisition look at smaller players you can afford to buy and do something for your shareholder value. EIDSY is now trading at 12 3/8 which makes my 19 1/2 buy in May look foolish, my book gains on my entire EIDSY holding is now also almost erased. The management should really do something for their shareholders, otherwise there is the danger that another big player in the entertainment industry is preparing a bid in order to buy this company and it's main asset Lara Croft for a bargain. I don't want to see this happen! Kai

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