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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (27959)	5/6/1998 12:01:00 PM
From: HB	Read Replies (1) \| Respond to of 132070

Thanks a lot, Mike and Don, for your posts about Midway. I have checked with my contact in gaming (who is not an insider at any company involved in this story). He is not real familiar with Midway's current situation (very familiar with their games from years past as a heavy game player, though). But he did comment that going up against GT interactive seems risky, since they are fairly tough about trying to maintain a dominant position in certain aspects of games distribution. He also felt that someone would probably succeed in bucking them sooner or later; he views them as a bunch of young go-go boys much respect for their customers, suppliers, or shareholders and feels this will end up hurting them. So, I feel pretty comfortable betting a bit that Midway will do OK without them. Midway has a market cap comparable to GT's, and it's balance sheet looks decent, and they have the arcade games for another source of revenue (almost half, I think, although we should hope PC games expand as a portion of revenues). I suspect the problems with MWY's stock price have to do with people worrying that they won't succeed in bucking GT, or will do so at the cost of greatly reduced profits. So, I'm in as of yesterday for a first slice, although I haven't seen anything looking like a high volume bottom yet (though there was a lot volume at the close yesterday, which is when it went under 17---maybe that was support buying, though it looked weird to me). I haven't followed your gaming picks as closely as some other areas, but I have noticed they seem to do OK -g-. Good luck to us. Guess I better get together some quarters and do some additional research. Cheers, HB