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

To: vc21 who wrote (862)	1/30/1998 1:04:00 AM
From: Tom Caruthers	Read Replies (1) \| Respond to of 1992

Vic, Then I leave it to you to tell us when the next buy signal is (TA-wise)... that is if you so choose. I'm a little disappointed that you didn't call the top publicly. I would have been very impressed! But seeing that you are 2 for 3, I think you might be onto something and I would appreciate your input. I personally am waiting for things to calm down a bit and for people who are nervous nellies to get out before I buy some more. Personally, I don't think there are too many left. That could all quickly change with earnings revisions and/or rating changes. My impressions about multimedia companies wanting to come in and buy up these companies may be slightly displaced after reading a Multimedia Wire article saying that many of the big boys are abandoning efforts in this arena. If Alex is right about his belief that Kotick will not sell out, then I still think we are well-positioned to go it alone. However, the two facts remain...1) ATVI is one of the few quality games companies out there that is actually making money, has a good pipeline and has good prospects on its own 2) ERTS has been shopping around and has put up a half hearted effort to get Virgin as Alex pointed out. That means that they are still looking. And there are few candidates left. Microprose? I don't think so....too many problems and stigmas. Broderbund? They already tried and couldn't do it. THQI? Amazingly profitable little company. But face it, no offense, but their line-up isn't exactly spectacular. Although some of their titles would fit in well with EA Sports, if EA wants to broaden its portfolio, it's going to have to go outside it's own developed genres to do it. It certainly can develop it's own WCW titles, etc. ATVI and THQI? As we already said, THQI is a bit on the expensive side. I'd rather see ATVI pour the money into its own product development or efforts to procure playstation titles than buy out THQI. The way I see it...Broderbund should make a play for ATVI as Alex mentioned previously. Broderbund needs a solid pipeline. Adventure games like Riven and Journeymen Project 3, Carmen Sandiego have a specific market...amazing appeal with women and families which many companies don't have. But it is SORELY lacking in all other genres. Activision has good presence in those other genres. Broderbund and ATVI make a nice fit. But BROD surely needs ATVI more than ATVI needs BROD and thus, BROD should be willing to pay big bucks for ATVI. The more I think about, I believe that Alex and some of the reports in the press are correct about Bobby Kotick's intentions about staying an independent company. I applaud him for it and am willing to stick by to see what happens. Tom C.