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Technology Stocks : RomTech (Nasdaq: ROMT) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jenkins who wrote (284)	1/25/1999 12:45:00 AM
From: Greg Jenkins	Respond to of 427

here is information from Individual Investor's special situation report dated 7-8-98: Romtech makes budget or value priced software (under $20), including games such as Solitaire and office help products such as Fonts. Its Galaxy of Games series of titles, which offers customers more than 300 games for $9.99, has been a consistent best seller since the beginning of 1997. Romtech announced a management shake up, in which CEO Joe Falsetti resigned from the company abruptly. CFO Jerry Klien has taken over as CEO. This caused the stock to plunge to as low as $1.25 per share, before rebounding back to $2. In tandem with Falsetti's resignation, the company announced it will miss estimates for the fourth quarter. Instead of posting $0.05 per share on revenue of about $2.5 million, it will post break even results on revenue of about $2.0 million. CEO Klein said that the Windows 98 release, combined with a severance charge for Falsetti, caused the company to miss estimates. Klein also told SSR that after Mr. Falsetti left he and Odyssey Capital had a discussion in which Odyssey agreed to not sell any more shares until the stock goes above $5 per share. All that bad news aside, Jerry Klein thinks the company can earn $0.40 per share in fiscal 1999. Romtech will raise prices from $9.99 to $19.99 and will add more games and content to form a superpak. Based on surveys with customers and talking to its distributors, Slash, Klein thinks this strategy will work. Galaxy Online will undergo its official launch this fiscal year, potentially adding to sales. The CEO resigning, the company missing estimates, plus raising prices to make up for lost sales are all telling signs of a company in trouble. Do not fight all the bad news. Sell now. ------------------------------------------------------------------- The above was from August 1998. SSR moved Romtech to its watch list. See the next post for their latest update. Greg J.

To: Greg Jenkins who wrote (284)	1/25/1999 12:56:00 AM
From: Greg Jenkins	Read Replies (3) \| Respond to of 427

Here is the latest from Individual Investor's Special Situation report dated 1-13-99: Romtech is a personal computer software manufacturer targeting individual consumers and small business users. The company's product line includes a variety of computer game titles, including Solitaire, as well as reference and education related software systems. It seems that the situation at Romtech is about to improve. At the time of this update, Romtech is preparing to formally announce a distribution agreement with Digital River, an electronic commerce technology vendor. In recent conversations with SSR, the company's Chief executive, Gerald Klein, said that Romtech entered the partnership with Digital River in the early December 1998. According to the arrangement, Romtech's software titles will be included in Digital River's database, which is utilized by the company's retail partners, including popular Cyberian Outpost, for direct distribution of software products over the Internet. The latest development is potentially a strong catalyst, that could lift the stock off of its current valuation level. SSR believes that, through an alliance with Digital River, Romtech can significantly expand its distribution channels, which should ultimately translate into strong top and bottom line growth. Perhaps even more important factor that could propel shares higher is improving operating performance. Mr. Klein pointed out that in the beginning of the current fiscal year, the company vowed to double its earnings and grow revenue by 50%. According to the CEO, so far, through the second quarter, Romtech is on target to deliver on its promise. Before upgrading the stock, however, SSR would like to wait until the announcement of second quarter results which should improve earnings visibility for the rest of the fiscal year. -------------------------------------------------------------------- I will post the next update when received. Greg J.