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Yes congratulations to the winners.
I wonder if the guys who go long on SEG might share why they select it?
Darth.
I wonder if the guys who go long on SEG might share why they select it?
Darth.
Hi all, am I the first to win it twice 
In answer to your question darth would take a very long time to show you the correct figures and reasons.
When I have some time I will put up a post with a full sector breakdown, and why by the end of the year Game stocks will be the darlings of the LSE.
Chris
In answer to your question darth would take a very long time to show you the correct figures and reasons.
When I have some time I will put up a post with a full sector breakdown, and why by the end of the year Game stocks will be the darlings of the LSE.
Chris
Max Damage
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Very simply they are valued at 11 million they have a 10 million selling title just added to thier line up with tthe sequel due in sept.
Their upcoming Italian Job game has had a rave preview in the top selling European PSX mag with more promised in future months
They own Thunderbirds, The great Escape, Carmageddon, Rally Championship amongst others.
The resons for the results screw up were
1) suplier did not pay a bill and apealled to the courtsafter losing the first case - That apeal is this month and they should win agian and the company has more than enough money to pay
2) Investment write off - however another one http:www.celoxica.com is due to float I think the next 12 months
3) Deferred revenue from an aquisition whichwill be recognised in 2002
4) Increaced goodwill
Non are trading and with around 5-6 mill in the bank they have plenty of cash to see them into the gaming boom times again. PSX2 has outsold PSX1 by 5 to 1 in the same time period on release. So based on that think how much bigger it is getting. Sony will have 20 million units sold by Xmas 2001
Microsoft are spending half a billion dollars marketing X-box. They wouldn't do that if the industry was as bad as UK stock analysts tell us
Computer games now gross more money than film and video and are catching up music. Its is forcast to grow at 30% per annum yet the companies are valued almost as being worthless. Not for long.
There is much more and I will dig out links to help
Their upcoming Italian Job game has had a rave preview in the top selling European PSX mag with more promised in future months
They own Thunderbirds, The great Escape, Carmageddon, Rally Championship amongst others.
The resons for the results screw up were
1) suplier did not pay a bill and apealled to the courtsafter losing the first case - That apeal is this month and they should win agian and the company has more than enough money to pay
2) Investment write off - however another one http:www.celoxica.com is due to float I think the next 12 months
3) Deferred revenue from an aquisition whichwill be recognised in 2002
4) Increaced goodwill
Non are trading and with around 5-6 mill in the bank they have plenty of cash to see them into the gaming boom times again. PSX2 has outsold PSX1 by 5 to 1 in the same time period on release. So based on that think how much bigger it is getting. Sony will have 20 million units sold by Xmas 2001
Microsoft are spending half a billion dollars marketing X-box. They wouldn't do that if the industry was as bad as UK stock analysts tell us
Computer games now gross more money than film and video and are catching up music. Its is forcast to grow at 30% per annum yet the companies are valued almost as being worthless. Not for long.
There is much more and I will dig out links to help
Max Damage
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Yep Alot of both Chartman. But it has been picked mainly for its forward potential into 2002 and beyond However the real bugbear of all games stock holders in the UK is the underperfmance relative to their foreign peers.
In the last 52 weeks only 1 stock has risen on the NASDAQ 100. It is Electronic Arts ERTS and is well up. On the composite the other stocks are just as high. They see in the US that this is a sector ready to move forward in a big way. Sadly we don't yet
This article is worth a read which discusses Activision
http://yahoofin.cnet.com/news/0-1007-200-5006789.html?tag=pt.yahoofin.financefeed..ne
And here is a more general US article
[blockquote]The Ascent of the Video Game Industry
by Chris Connor
Senior Technology Analyst, WallStreetCity.com
R.I.P. Old School
Long gone are the days of old school games such as Pong, Pac Man, and Donkey Kong. The video game has evolved from a very simplistic experience into a multi-billion dollar industry. In fact, only movies garner more of America's entertainment spending than video games. Video games (computer and console) now have the power to grip gamers with incredibly realistic graphics, involving story lines, addictive role playing, management capabilities (i.e. managing a person's life in the Sims or trying to "level up" a character in Diablo 2 or Baldur's Gate 2), and the ability to play against friends or against people all over the world.
Hello New Breed
Without a doubt this is one of the most exciting times in the history of video games. The long-awaited sequel to the best console of all-time (PlayStation) was launched in the fall and two more next generation consoles systems will appear on the gaming scene over the next year, Microsoft's {MSFT} Xbox and Nintendo's {NTDOY} GameCube. Furthermore, Nintendo's Game Boy will finally have a true upgrade (instead of just adding color) as the Game Boy Advance is set to be shipped in June. If that was not enough, Sega {SEGNY}, a company famous for critically acclaimed games, decided to finally leave the hardware business and focus solely on making games for all gaming platforms. This will benefit gamers by not forcing them to buy a Sega console to play the company's massive library of quality games like NFK2K1, NBA2K1, Jet Grind Radio, and Sonic the Hedgehog.
Long Awaited Features
These next generation machines will usher in certain features that gamers have craved for years such as backward compatibility (Game Boy Advance and PlayStation 2), the ability to play games that are compatible with both a handheld and a console (Game Boy Advance and GameCube), and play console games over high speed Internet connections (each console will have a broadband adapter). PlayStation2 or a Game Boy Advance will offer backward compatibility, which allows gamers to play the games that they have owned for years without having to hold onto the old machine. The Game Boy Advance is also set to make quite a tag team with the GameCube, because a gamer will be able to play the same game on both systems. In other words, a gamer can level up his character in an RPG on his Game Boy Advance in the doctor's office and then transfer that data to the Game Cube later in the afternoon to continue playing the game at home, in front of the larger television screen. Finally, consoles are getting ready for the broadband era through the inclusion of a broadband adapter. This prudent move allows for the consoles to be positioned for the eventual adoption of Internet networked gaming, rather than trying to force networked gaming as Sega attempted by placing modems into its ill-fated Dreamcast.
Investing in the Gaming Revolution
ADRs of both Nintendo and Sega are traded in the U.S., but as bulletin board issues. This frees both companies from many of the regulatory requirements associated with a listing on a major exchange, thereby severely limiting the amount of readily available financial information. ADRs of Sony are traded on the NYSE, but gaming only contributes a small portion to the electronic conglomerate's total operations. Similarly, sales of the Xbox are likely to pale in comparison to those of Microsoft's operating systems and Office suite.
This leaves the only publicly-traded game makers as the only the way to gain direct exposure to this burgeoning industry. The table below lists many of the major players along with a brief overview of each stock.
Company Ticker Market Cap (millions)
Price to Sales Ratio 5Yr Forecast Growth Rate
Electronic Arts ERTS 7,563.2 5.84 25%
Activision ATVI 639.0 1.07 25%
THQ THQI 797.6 2.30 22.5%
Take Two TTWO 471.3 1.19 25%
Interplay IPLY 47.1 .46 30%
Eidos PLC EIDSY 321.3 1.27 NA
Acclaim AKLM 85.5 .54 NA
3DO THDO 93.8 .87 30%
Midway MWY 275.4 1.35 25%
Infogrames IFGM 382.3 .65 NA
Stay Tuned For More Articles on Games!
This is only the initial article on the video game industry. Look for several more game-related features over the coming weeks. Future installments of this series will focus on each next generation console, chip makers for the consoles, the pipeline for each game company, and which company stands to benefit the most from the next generation machines.
Want to Find Other Winning Stocks?
WallStreetCity's ProSearch gives you the power to sort through the several thousands of publicly traded stocks and find the ones with the characteristics that you most desire. With over 300 criteria available at your finger tips, ProSearch helps you find winning stocks. Just click here to use the powerful stock screening capabilities that ProSearch offers. [/blockquote]
This industry is undeniably getting bigger and will exhibit strong growth. The only Question is which one in the sector. SCi is our pick but there is a wide choice out there
In the last 52 weeks only 1 stock has risen on the NASDAQ 100. It is Electronic Arts ERTS and is well up. On the composite the other stocks are just as high. They see in the US that this is a sector ready to move forward in a big way. Sadly we don't yet
This article is worth a read which discusses Activision
http://yahoofin.cnet.com/news/0-1007-200-5006789.html?tag=pt.yahoofin.financefeed..ne
And here is a more general US article
[blockquote]The Ascent of the Video Game Industry
by Chris Connor
Senior Technology Analyst, WallStreetCity.com
R.I.P. Old School
Long gone are the days of old school games such as Pong, Pac Man, and Donkey Kong. The video game has evolved from a very simplistic experience into a multi-billion dollar industry. In fact, only movies garner more of America's entertainment spending than video games. Video games (computer and console) now have the power to grip gamers with incredibly realistic graphics, involving story lines, addictive role playing, management capabilities (i.e. managing a person's life in the Sims or trying to "level up" a character in Diablo 2 or Baldur's Gate 2), and the ability to play against friends or against people all over the world.
Hello New Breed
Without a doubt this is one of the most exciting times in the history of video games. The long-awaited sequel to the best console of all-time (PlayStation) was launched in the fall and two more next generation consoles systems will appear on the gaming scene over the next year, Microsoft's {MSFT} Xbox and Nintendo's {NTDOY} GameCube. Furthermore, Nintendo's Game Boy will finally have a true upgrade (instead of just adding color) as the Game Boy Advance is set to be shipped in June. If that was not enough, Sega {SEGNY}, a company famous for critically acclaimed games, decided to finally leave the hardware business and focus solely on making games for all gaming platforms. This will benefit gamers by not forcing them to buy a Sega console to play the company's massive library of quality games like NFK2K1, NBA2K1, Jet Grind Radio, and Sonic the Hedgehog.
Long Awaited Features
These next generation machines will usher in certain features that gamers have craved for years such as backward compatibility (Game Boy Advance and PlayStation 2), the ability to play games that are compatible with both a handheld and a console (Game Boy Advance and GameCube), and play console games over high speed Internet connections (each console will have a broadband adapter). PlayStation2 or a Game Boy Advance will offer backward compatibility, which allows gamers to play the games that they have owned for years without having to hold onto the old machine. The Game Boy Advance is also set to make quite a tag team with the GameCube, because a gamer will be able to play the same game on both systems. In other words, a gamer can level up his character in an RPG on his Game Boy Advance in the doctor's office and then transfer that data to the Game Cube later in the afternoon to continue playing the game at home, in front of the larger television screen. Finally, consoles are getting ready for the broadband era through the inclusion of a broadband adapter. This prudent move allows for the consoles to be positioned for the eventual adoption of Internet networked gaming, rather than trying to force networked gaming as Sega attempted by placing modems into its ill-fated Dreamcast.
Investing in the Gaming Revolution
ADRs of both Nintendo and Sega are traded in the U.S., but as bulletin board issues. This frees both companies from many of the regulatory requirements associated with a listing on a major exchange, thereby severely limiting the amount of readily available financial information. ADRs of Sony are traded on the NYSE, but gaming only contributes a small portion to the electronic conglomerate's total operations. Similarly, sales of the Xbox are likely to pale in comparison to those of Microsoft's operating systems and Office suite.
This leaves the only publicly-traded game makers as the only the way to gain direct exposure to this burgeoning industry. The table below lists many of the major players along with a brief overview of each stock.
Company Ticker Market Cap (millions)
Price to Sales Ratio 5Yr Forecast Growth Rate
Electronic Arts ERTS 7,563.2 5.84 25%
Activision ATVI 639.0 1.07 25%
THQ THQI 797.6 2.30 22.5%
Take Two TTWO 471.3 1.19 25%
Interplay IPLY 47.1 .46 30%
Eidos PLC EIDSY 321.3 1.27 NA
Acclaim AKLM 85.5 .54 NA
3DO THDO 93.8 .87 30%
Midway MWY 275.4 1.35 25%
Infogrames IFGM 382.3 .65 NA
Stay Tuned For More Articles on Games!
This is only the initial article on the video game industry. Look for several more game-related features over the coming weeks. Future installments of this series will focus on each next generation console, chip makers for the consoles, the pipeline for each game company, and which company stands to benefit the most from the next generation machines.
Want to Find Other Winning Stocks?
WallStreetCity's ProSearch gives you the power to sort through the several thousands of publicly traded stocks and find the ones with the characteristics that you most desire. With over 300 criteria available at your finger tips, ProSearch helps you find winning stocks. Just click here to use the powerful stock screening capabilities that ProSearch offers. [/blockquote]
This industry is undeniably getting bigger and will exhibit strong growth. The only Question is which one in the sector. SCi is our pick but there is a wide choice out there
Hill Farmer
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Thank's Chartman. I checked out of AU. as I thought that Bunkum's long would fall, my long SMIN rise and I could make-up the gap between us. Got that one wrong. Still. Anyhow, who's gonna send me the cheque, you or Sharky?
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thanks for the interesting replies on SEG.
You may be right in the medium to long term but I will be waiting until there is technical evidence of a recovery. There seem to be lots of companies out there with more cash in the bank than capital value along with innovative products but the prices keep dropping.
Good luck next week.
You may be right in the medium to long term but I will be waiting until there is technical evidence of a recovery. There seem to be lots of companies out there with more cash in the bank than capital value along with innovative products but the prices keep dropping.
Good luck next week.
Max Damage
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Waiting is the name of the game in this market Chartman
I agree max. However for the comp, as I said previously, you need to be a bit cavalier or very lucky to win.The number of stocks rising 10-20% in a week in this climate is very thin.Last week, my backtesting showed 50 odd stocks that had moved more than 15% in the previous week out of 2,500 odd, and a lot of them were probably "penny stocks".
This leads to a false impression in the real world, with spreads of 10% plus ....which we do not take into account in the comp.A penny stock with a 30% rise may only realise a real return of 5% after costs and spreads.
In the real world, waiting IS the name of the game.
My long pick last week was a big gamble that failed(LMI).
I would never have put money on it.BUT at the end of the week, it has formed a double bottom and looks an even better pick for this week........Still not a real world BUY though.
I'm tempted for the comp this week to pick it again, but I haven't scoured the stocks yet...
This leads to a false impression in the real world, with spreads of 10% plus ....which we do not take into account in the comp.A penny stock with a 30% rise may only realise a real return of 5% after costs and spreads.
In the real world, waiting IS the name of the game.
My long pick last week was a big gamble that failed(LMI).
I would never have put money on it.BUT at the end of the week, it has formed a double bottom and looks an even better pick for this week........Still not a real world BUY though.
I'm tempted for the comp this week to pick it again, but I haven't scoured the stocks yet...
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A good post, I am very much in agreement with you Martin.
This week it seems to be even harder to find candidates for my long "short list" (should that be short "long list"?).
This week it seems to be even harder to find candidates for my long "short list" (should that be short "long list"?).
