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Technology Stocks : 3DO: Hot Games for Hot Machines (THDO) -- Ignore unavailable to you. Want to Upgrade?

To: Patricia who wrote (4073)	11/25/2002 4:30:09 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 4081

Hi Patricia, Re: the insider selling at ATVI... Nothing new there. The insiders have been huge sellers as far back as 1997. I pulled the Vicker's report (insider trading report, going back several years) and then cross-referenced that with the salary, bonus plan(s), options, ESOP, etcetera found in the company's SEC filings and concluded that the executive compensation is not really out of line compared with executive compensation at other (non-game) software firms. All of the executive base salaries I looked at were only in the low six-figure range (I probably didn't look at every single filing, but I did do a representative sampling), and bonuses, stock options, etcetera were "reasonable". In other words, it doesn't appear (at first blush) that the executives are lavishly compensated, and the rather low base salaries would explain to some degree the extremely high ratio of insider selling to buying. I note that the insiders have all but stopped selling since the stock price plummeted... Re: Goldberg's contract... I see/found nothing that would indicate that his contract won't be renewed in April of next year. Granted, that's an presumption on my part, but in the absence of any news in that regard, I'm willing to "predict" that the gentleman plans on sticking around for a few more years... Re: forgiving executive loans... I found nothing recent that indicated that executive loans would be forgiven, but even if that were to be the case, they have only a tad over $7M in outstanding executive loans (as of the last 10K filing earlier this year), and the dollar amount is insignificant relative to revenues and cash flow, so I'm willing to "dismiss" any loan forgiveness as simply another avenue of executive compensation, provided that the company delivers earning's growth somewhere in the vicinity of what's expected (20% on the low side to 60% on the high side)... KJC