Multimedia Games Inc. (MGAM) Message Board

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Non-Tech : Multimedia Games Inc. (MGAM)

MGAM 0.122

-0.8%

11:48 AM EST

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To: Craig Stevenson who wrote (108)	3/11/1997 10:48:00 AM
From: Michael Klein	of 197

I have heard $12 in the next 6 months from 2 different people. Another source has said this is not the homerun deal. I am not sure of that because the company appears to be heading in the right direction. I did sell a few shares at $7.75 because I need the cash. My concern for the company is in the regulatory environment with the states somehow derailing this and other companies efforts. For instance, Mystic Lake in Minnesota has agreed to collect sales tax for food, hotels, liquor, shops, and cigarettes and split the money with the state. Re-interpretation of MGAM's games could have a negative impact on the company. My bigger concern for the stock has to do with the number of shares outstanding and where the trading activity is coming from. Past experience in deals where 1 or 2 market makers were real active resulted in price runups that looked great. After a time, the market makers moved to another deal and left some people holding stock with no strong market maker support. Suppose the market makers lose interest with MGAM. Then you have 4+ million shares out there with no one tending to the market for the stock. Could this happen? Yes! Could it happen soon? Who knows! My other question in the same area is are people shorting the stock. I do not know if this deal can be on margin but I have been burned big time when people out east in the know started selling and the market could not absorb the stock. Margin calls then drove the stock down further during panic selling. For some reason, my gut says sooner or later this deal is going to get ugly. I don't know why or when, I just get this feeling. I hope this deal proves me wrong.

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