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.

Gold/Mining/Energy : MGI Software (MGI on the TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Stinson who wrote (222)	12/15/1997 4:35:00 PM
From: TheNamelessOne	1 Recommendation Read Replies (1) \| Respond to of 553

I own shares in a few software companies and the general concensus is that most if not all the software companies have experienced substantial declines in stock value in the last few weeks. The fact that two of the largest (Microsoft and Oracle) have been hit this past week has not helped at all. I think there was quite a bit of hype around MGI in the past few months which is what caused the price to surge. However, now that the dust has settled a bit the price has fallen probably to where it should be given the fact that they still have not made a profit. Overall I think it is still a very good long term prospect but I wish I had sold at 6.50 and bought back now. MGI has received 25 awards to date and signed many license deals with high profile companies. How can the product now be considered inferior after the many positive reviews it has received. Do the OEM's now think that Photosuite is an inferior product? Sante...

To: Steve Stinson who wrote (222)	12/16/1997 11:31:00 AM
From: Danny Deganis	Read Replies (1) \| Respond to of 553

Steve, I understand your concern on the fundamentals of MGI, but I personally think that their continued lagging price has more to do with the time of year than it does with the company itself. If you look at the market depth for MGI on any given day, you will see Cannacord and others, selling a ton of stock every time the price appreciates. As one of the principals involved in the underwriting, they are long a load of shares in the $3.00 range, and possibly even lower. They need to get this off their books before Dec 31. and hey why not, they are still making a profit at these levels. This is also the case for other institutional and retail investors who need the loss for tax purposes. Remember, it was a great year for a lot of people. I'm hearing that the stock price should begin to appreciate in the new year. We shall see what happens. Best of Luck to You and All! Danny