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Technology Stocks : Activision....Returns! -- Ignore unavailable to you. Want to Upgrade?

To: Burlitis who wrote (1546)	11/20/1999 3:42:00 PM
From: Tom Caruthers	Read Replies (1) \| Respond to of 1992

Hi Alex and Scot, I've been pretty quiet on this board for a while and have taken profits on the stock near the high. Now I'm back into the stock at these levels because of two things. The most important reason is the resignation of Mr. Plaga, the CFO. Although he justly deserves much credit for helping make ATVI a revenue powerhouse, his resignation signals to me a possible improvement in profitability for ATVI. We all know that although revenues have jumped sky high, net income has not kept pace. Lots of reasons...like high licensing fees, distribution/production mix, etc. Other companies like ERTS deal with these issues as well, however their profitability is twice that of ATVI's. I don't know the inside scoop on why Plaga left, but if he was forced out due to poor performance, then that means to me that ATVI is serious about keeping their promise of industry leading profit margins by 2001. The other reason for buying ATVI now is that it's just too darn cheap compared with other stocks...EIDSY, ERTS, THQI... Perhaps not as profitable on a percentage basis, but certainly one of the most high profile interactive gaming companies out there. And with $0.77 in trailing EPS, it's a buy to me. Good luck to all ATVI longs. See you at $20. Tom