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.

Technology Stocks : ACCLAIM Entertainment -- Ignore unavailable to you. Want to Upgrade?

To: Vincent Le who wrote (2172)	6/30/1998 12:21:00 PM
From: Altaf Amin Jadavji	Read Replies (1) \| Respond to of 4149

More from Briefing.com ... A three-fold better than expected announcement deserves more than a 8% up-tick, no? Regards, 12:00 ET ****** ACCLAIM ENTERTAINMENT (AKLM) 6 9/32 +17/32. Beware of the entertainment software stocks. Daytraders, in periocular, should be especially careful when investing in these stocks following the report of a strong earnings. Why? The group's active following has a tendency to run the issues up in advance of earnings reports or trade shows. We are not sure whether these grown men and women are active video gamers or simply make channel checks by visiting retail stores, but they always seem to know when business is robust. In this business, however, that is not quite as difficult a task as it may seem, because it only takes one strong product release to carry a company's quarter and/or year. This morning, Glen Cove, NY-based software publisher Acclaim Entertainment reported the kind of numbers that would usually have investors (particularly daytraders) pouring into the stock. Net income for the 3rd qtr came in at $0.09 a share, 6 cents or 200% above the First Call mean estimate of 5 analysts surveyed. Net revenues rose 76% to $73.2 million. But, as the chart indicates, AKLM shares made a sharp upward move ahead of the earnings report. As a result, the extremely strong volume of 1.6 mln shares experienced today has been only enough to lift the stock 8.7%, as many of the shares which were purchased last week have come back into the market this morning, offsetting much of the earnings related buying pressure. Earlier this month, AKLM shares advanced ahead of Electronic Entertainment Expo in Atlanta, then tumbled more than 20% after the company's presentation left investors feeling uninspired. Moral of the story: Shy away from going long video game makers on the day of the earnings report. If one really wants to make money in this group, the best play is to find the companies with the hottest selling games and start accumulating shares several days before the earnings are to be released.