Ha! Good to see some of the posters of yesteryear are still around and back (don, jeff....). I agree with Don. This looks like the typical 3DO stock pr campaign they have often been involved in. And the result as Don suggests is that the price declines back to it's historical trading range of the past 2-3 years. History for 3DO's stock is more important than fundamentals or technical indicators. I'm sure both Don and Jeff (and any other individual who has closely followed this stock for the last few years) can substantiate the details of the typical 3DO stock pr campaign.
Although I'm rather bullish on 3DO's future, the recent stock movement is not a result of this "bullishness" but instead is the result of 3DO's stock pr campaign. Battletank's on CNBC....didn't know so many avid video gamers followed CNBC, my mistake. Press releases that say absolutely nothing new and push gibberish to the unsuspecting. Certainly. I couldn't help but laughing at 3DO's statement regarding the internet. Meridian59 a profitable venture? Things must have dramatically turned around in the past few months for M59. 3DO better hope that no law suit seeking investor gets burned this time. And the internet as a sales device....whoopee. Slightly higher margins, maybe. Creating and sustaining a direct sales channel isn't guaranteed to be create higher margins. If it were, most companies selling such products would have their own direct channels on a grander scale.
And so what does the stock have to fall back on? While 3DO has improved over the last year in the number of titles released, we are still seeing that 3DO isn't able to deliver the number of games as they would us to think they are. How many of those games in the recent PR were mentioned sometime ago as "upcoming" titles? Most of them. And many of them still are not released. 3DO has entered the console market which usually carries with it higher volume and margins. None the less 1 or 2 titles in those arenas will not have significant impact unless they are hits. And, similar to the PC market, the PSX gaming market is also flooded with a rather large quantity of titles. I furthermore question the games 3DO is bringing to the PSX market. As a PC gamer, 3DO has introduced quality games that appeal to a PC gamer. But as a console gamer, I have no interest at all in the titles 3DO is releasing.
3DO's outlook remains the same. Of course revenues will increase as more titles are released. The primary question is if 3DO can release enough titles to turn the revenue into substantial profit. We have yet to see that and probably may not for some time to come.
Oh, the Market Makers have always had a good time with 3DO when it rallys. 2-3 days of rally and then a sell off. Enjoy!
One last note....to my knowledge, not very many solid sectors (ie. sectors whose companies fall into a clear line of production....software, media (old), finance, etc.)that are already defined have been able to play the internet scam very well (although there have been the few flukes who everyone has heard of, but where are they now?). It is usually successful only for those "uncertains" whose primary business is unknown and will substantially focus on internet business.
Chris |
