To: Coy Lynn Gullett who wrote (80 ) 1/24/1998 7:24:00 AM From: flickerful Read Replies (2) | Respond to of 633
some buy signals were generated on friday... bollinger bands have narrowed to %85. ao much for TA, a friend sent me this: BARRON'S 12/20 Play's The Thing -4-: Consolidation Will Continue If there's one thing watchers of this industry virtually all agree upon, it's that its consolidation will continue, perhaps at even a faster clip than already seen. This past year, Maxis, maker of the ever popular SimCity family of games, was bought by Electronic Arts. Another planned deal heralded the merger of Microprose (formerly called Spectrum Holobyte) with GT Interactive, with the idea of combining two second-tier players into one first-ranker. But things didn't go smoothly, and the deal collapsed, with each side blaming the other. Right now, even Microprose CEO Steve Race admits to hearing doubts whether the company can survive as an independent for any length of time, saddled as it is with a negative net worth and a track record of non-stop annual losses. But Race is emphatic that Microprose will prosper on such offerings as spinoffs of the popular but aging Civilization and the Falcon flight simulator. The market doesn't share his optimism; the stock recently was at 1 7/8, about 20% of its 52-week high. GT Interactive, a New York company with revenues roughly three times the size of Microprose's, also took a hit when the deal collapsed; its stock slid to around 6, well below its '97 high above 12. Amid a tide of strong offerings from the company, including Duke Nukem for Nintendo64, worries focus on the company's vulnerability to unexpected bad news. The Microprose deal helped highlight the fact that GT writes off expenses as products ship, rather than when they sell. If something is returned, earnings suffer. ETC ETC ETC... DOW JONES NEWS 12-20-97 05:10 AM ______________________________________________________ coy.... i realize this article ( aside from its barron's-ness) does not address much of the soon to be released roster, but have you any feelings about CH 11 as a possibilty before the rehabilitative aspect of new product revenue is felt? any and all insight welcome...on this issue, or any other relevant to the short, or long, term future of MPRS. thanks, randy