I have read several dire decisions about how low MGT stock will go.
These forecasts are from good and bad stock analysts, who forget
one very big business principal. If a business decision maker wants
a business entry into a new type of business, he has two choices;
he can re-create existing technology, or he can buy existing
technology. If he makes a buy decision but it then appears that a
competitor is trying for bargain purchase, additional competitors will
submit competitive stock purchase bids until buying costs are
equal to re-creation costs. So a word to all you short sellers and dooms
day thinkers, factor in the "re-create or buy" potential or risk a very
bad one day shock. The conference emphasized asset value, and
Ladd said one important thing "I an a shareholder too." So management
of MGT may not be adverse to selling assets. I will make no attempt
to estimate the re-creation value of MGT assets. I will leave that
to replies to this blog.
Good points. Also, MGT just started their patent lawsuit in 2012, and began acquiring skilled gaming-gambling business over the space of the last few months. The lifecycle of the companies they have acquired is in the poised-to-grow phase. So you can't count against them for not having acquired companies already raking in millions, but you have to judge them on the combination of talent and the start-up applications that have been launched or which are about to be launched.
The MGTPlay website indicates they will go live at the beginning of January 2014. I signed up via email to receive updates so I can identify the initial launch announcement date. Also, some type of partnering agreement is expected to come out in 1Q 2014 on their NJ casino internet gambling license. Both of these are serious developments coming soo and you won't want to be chasing the stock after announcements. GLTA.
one big problem, you need to create revenue and earnings to sell. There are plenty of executives who are great deal makers but can't execute. So far it seems like with the exception of the patents, MGT management is not good at either.