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Gold/Mining/Energy : Mainframe Entertainment (ReBoot/Beasties) -- Ignore unavailable to you. Want to Upgrade?

To: Sleeperz who wrote (199)	12/1/1997 6:37:00 PM
From: D.E. Shetland	Respond to of 459

I take your point and I believe MFE has said they would do some if they had the spare capacity. But my point is that you become a production house and are not building up any long-term value of residuals and library value. The equity market will value this much higher than a "job-house". Case in point, take a look at the valuation of Cinar versus that of Film Roman. Cinar's mkt cap is over $500mil and Roman's is a measley $16mil. Film Roman does the Simpsons --talk about a success. But they don't own it, they just produce it and get a fee --that's it. Cinar owns rights and licensing etc... That's where you build value. Special effects have zero residual component. I agree, if you have some animator's sitting around and spare computer time, bid for special effects. I'm sure they will, but they don't have any spare time from what I can see.

To: Sleeperz who wrote (199)	12/2/1997 9:53:00 AM
From: D.E. Shetland	Read Replies (1) \| Respond to of 459

A buddy of mine in Toronto called and said he heard from a broker that Mainframe was working on something like 25 various TV and Movie projects and that a few new TV deals were being finalized and that there was more interest than ever on the movie side. He was told that the TV shows would be big projects (as in many episodes) and they were popular subjects with "big name" partners. He said the movie partners are all over MFE, visiting the site weekly, and that they are close to finalizing some. Some of this we already knew from the quarterly report (I haven't summarized the report I got yet up here, but it corrobarates some of this). But a new interesting thing he was told was that IMAX was all over them now for more projects given the success of the RideFilm. I think they want to sign them up for even more projects --not just RideFilms, but 3D movies and other things. All good news. ..gotta go.