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Technology Stocks : GTIS - Will it be a Phoenix or not ?
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To: RJC2006 who wrote (2137)2/19/1999 10:09:00 PM
From: telecomguy  Read Replies (2) of 2319
 
Tks for the history & your indepth assessment of GTIS.

Their receivables of $280 million is probably bloated because I assume that almost all of the Christmas shipments have been invoiced (put on receivable) but obviously not collected as of Dec 31,1998.

Of course, trying to figure out what the revenue is must be difficult in this industry since the retailers supposedly can return unsold games for 100% credit.

One of the reason why I am intersted in understanding how the Internet distribution could impact game industry is this very difficult issue of Inventory forecasting & receivable problems -- not to mention the hefty "shelf-space" costs that must eat into the margin.

What is the ex CEO Chaimodiwitz's role with that other division (I forgot the name -- something to do with Oz?) that is trying to leverage Internet as a business model to promote GTIS? Is there some firm vision/strategy that they are working towards -- or is it all hush, hush secret?

It seems to me that in this business, Distribution & Creative control/ownership is everything.

The other interesting opportunity is their Children's products (Humungous,..). This market will grow very fast due to the perception among parents that interactivity with educational games on the PC is a very positive way to develop kid's intelligence.

Of course, there is always the formidable Microsoft which appears to be making overtures to get into software games development business so if that happens in a big way, then the little guys like GTIS may end up being muscled out by the Goliath's marketing/distribution muscle.

In the end, mgmt always makes a huge difference, so the interesting thing will be to see how Heyman can impact this ailing company.

One last question --- is the Games market affected by recession or the overall economy?
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