Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ACCLAIM Entertainment -- Ignore unavailable to you. Want to Upgrade?

To: Richard Spitzer who wrote (2646)	9/22/1999 9:18:00 PM
From: Marc Newman	Respond to of 4149

I will try to spend a bit more time here. Aug. 31 was the end of AKLM's calendar year, so they need to be fully audited. Thus, a slight delay. Oct.22 or so, right with THQ. The significance of the bond conversion is that it eliminates the big long-term debt and cleans up the balance sheet significantly. It will make mutual funds more likely to invest and also frees up the $50 million in cash that AKLM is holding as a reserve. Also, it will eliminate a tendency by the bond holders to short more as AKLM rises. Ie, an impediment to share price appreciation will disappear. I keep harping on the Apple example. Stock was at $35 in April. They announced they were going to call the debt early. Stock goes to $50 in a rush. Upgrades, etc., all mentioning the conversion as a big positive. Oh, and the AAPL short interest dropped by something like 65% in a month. If the stock is at $12 in a few months I will sell a majority of my position unless I feel I have as good a snapshot of AKLM going forward as I do with THQ. However, I am already becoming more comfortable with AKLM (and the projected growth in the industry). Marc

To: Richard Spitzer who wrote (2646)	9/22/1999 9:46:00 PM
From: MikeD	Read Replies (1) \| Respond to of 4149

Great to see a couple of posts in here! Other than near term expectations for the holiday season, do you feel AKLM has the potential for significant growth over the next three years, ala THQ? Well, long term Acclaim will have to keep executing and getting the good licenses as well as other, original games. THQ is a tough act to follow and AKLM still hasn't completely rid itself of the tarnished recent past. They have, however been making some good moves in my opinion: Something like five titles for Dreamcast. Dreamcast has sold well, and everyone I know that has purchased one has been pretty happy with it, other then the intermittent games or web browser not working. I've said it before, people need games to play on their new toy, and AKLM has some pretty good ones. Trickstyle is actually really cool and should sell well. It's fast, and fun and is much better then the other 'racing' games available on the platform. From what I've heard, the current football offerings aren't that great, so they could sell a lot of copies of NFL Quarterback Club 2000. It's sold well in the past, so between DC, PSX and N64 that should be a good seller. I haven't even mentioned their last WWF game, which from reports won't be as good as THQ's forthcoming version, but is the only wrestling game going on DC right now. I still think that long-term they have to get leaner and more competitive, but to me they have a much better lineup then Activision. The Sony rumor was interesting. It seemed like an unlikely scenario, and it really didn't move the stock that much, but still makes you think. I expect to buy more AKLM on any further weakness.