I don't know if you saw the primetime (football) game ad last night for GH.....Activision sunk some money into that ad. IMO, this also bodes will for MCZ in that there is likely evidence of a bigger market for this music genre go round than first expected. It also indicates that Activision is having to fight to garner some attention and it feels the prospects are worth spending some big coin. JMO
I believe you Heir. And I'm not defending MCZ's shortfalls. But this is a massive undertaking for MCZ.....I'm assuming the biggest one in its history. Harmonix is involved in this too so mistakes don't all likely fall into a single lap although the buck does stop at the top.
I still believe MCZ's problem will be meeting demand. The game thus far seems far from moderately successful; rather being a roaring success. As long as MCZ keeps all the demand it can handle, it will maximize the outcome for us shareholders. I feel pretty durn good about our prospects.
I'm starting to think you may have sold. At least, your written words sound that way. I think you are looking at trees instead of the forest. RB4 remains a forest for lil ole MCZ.
Call it the contrarian in me, but with the sheer size of a RB4 deal to an MCZ, I find the "more than" healthy skepticism, cynicism, and almost down-right fear of MCZ fumbling the ball at every turn assuring that we indeed will be climbing a genuine wall of worry here. I'm not making light of any glitches, but these can and are being resolved, you can be confident, and the game is clearly popular if one looks at the professional critics who have been reporting on the game all along. As has been stated time and time again, the only benefactors to RB4 are MCZ and Harmonix; the is a far cry different relative to MCZ's role in RB3......not to mention the numerous competitor games with their hand in the overall pie vs. the two (RB4 and GH) this time around. There's already reason to believe that launch "pre-order" sales were huge and I'm expecting Christmas to be gargantuan for MCZ.
A "numbers" gap (vs. a chart gap) occurs when, on a given trading day, the stock price fails to trade down to (gap up) or trade up to (gap down) the closing price from the previous trading day. So, if the price closed yesterday at .80, for example, and today if trades no lower than .82, there is a gap opened which can be filled should the price trade at .81, or lower, in the future. Conversely, if the price closed yesterday at .80, for example, and today it trades no higher than .78, there is a gap opened which can be filled should the price trade at .79, or higher, in the future.
It's easy enough to use Yahoo or another source's historical prices to check. I just did. There is no gap at $2.10. However, there is one at $1.80 from June 14, 2011. If we end up closing that one, we would be well in striking distance of the 2s then.
I'm not sure if you, Blu saw the post this character wrote before it was removed (not sure whether Yahoo or this Bluetears removed)...... because I reported it to Yahoo not long after he posted it. Seconds after I reported to Yahoo, it was gone from this board. It is the one that prompted my first reply (my earliest post on this board today) where I said I reported him. If you saw his post to me before it was removed, you read his final remark to me where he told me to "Die." I've never seen this character on a board before and the first thing he writes in a reply to me is a threatening hate language remark. He may think it was not recorded before it got removed, but it was....one knows to copy and paste something like that for future reference. So, it may not be on the board anymore but it is documented and it is also with Yahoo since I sent it and reported the abuse. They can see removed posts anyway. And the longer this day has gone on and the more time I've had to think about his threatening words in that post, the more I'm pondering whether I should follow this up.
Yea, the post of his to which I replied earlier is gone. I indeed wish he would draw attention to the posts here and describe all the posts here as pumps......he'll be the laughing stock of the crowd. Clearly he hasn't read anything here given the negative but realistic nature of all of us genuine investors who have been here posting for a very long time. He shows up today, sporting a strong sell sentiment on the removed post, having no record of posting here and again clearly hasn't bother to read things or he'd realize how dumb his post sounds. Unfortunately, we are stuck in our investment for now.
You aren't thinking very clearly; there's more at stake here than margins. MCZ's future depends on its ability to deliver on RB4.....period!
You are mistaken, Mr. Strong Sell; I just reported you. I'm not sure what your problem is, but you surely have one.
P.S. Realize that the lender, by shorting (selling) share does not actually have to buy back the shares. Just convert the debt to shares and use the shares to cover the short. It is impossible for the shares to cost (via conversion) more than 50% of what you shorted (sold) at.....so the lender profits on the difference and also will get a lot more shares due to the discount than it will take to cover the short. So, the lender just can't lose. This was an incredibly foolish deal.
Friend, thanks for your kind words and I have surely desired across my career to honor my privilege to mentor young people in college; I see it as a calling.
I want to be upbeat on ABHI. In fact, I am upbeat on the company's Active Optimization solutions. However, this recent convertible deal really does put us at the absolute mercy of the lender (and all the company got was 92K). Whether the lender chooses to run the table by profiting from a shorting strategy, who knows; it is within the lender's control, though.
Every share shorted is profitable....guaranteed. When ABHI set the conversion price on the debt for equity to .5 of the lowest stock price across the 20 trading days prior to conversion, it enabled the lender to be assured of receiving shares at a .5 discount to the lowest price over a wide swath. Of course, with shorting, one sells (borrowed) shares first and buys back later. The lender is certain of selling high and buying lower.
Now if this lender presses the price down through shorting to .0006, for example, the conversion price would be .0003 and 92K of debt converted to stock at .0003/share is over 300M shares....and ABHI doesn't have that many shares authorized.
So, this lender can dilute ABHI to the point they can't even comply with the agreement and the lender would own (control) the company.
The only solution I see is new financing to settle the convertible and/or force the conversion before the stock price drops lower. It's already hit below .004. That converts to 46M shares (92k/.002).
This is not surprising to me. I would guess that MCZ has basically sidelined a lot of things to free up as much capital for RB4 as possible.
Matt, good deal; as a partner, you see first hand the practical side of statement preparation and all the unusual financial events that can arise. I worked in industry before going into academic life. I have great admiration for those working in public practice.
I have had also had some conversations in the past year too with company officials. I'm a CPA and a college accounting professor, well acquainted with reading fine print and knowing what it means to parties involved. This last convertible debt deal is clear as a bell with regard to its terms specified in the SEC filing of it.
Thanks for the information. The earnings report in November will be one of the most important ones in MCZ history, IMO, with regard to revelation of RB4 success to date and hard numbers potential. It should be a lively CC, IMO.
You have the subject line "in quotes." Who said this?.....I'm trying to recall if I read it somewhere or is this your own comment? Was it Alex Verrey?
Some of us have much more at stake at a considerably higher share price average. They sure have to have financing to keep the ship afloat, but IMO, management did not have to give it all away like it did on the recent financing deal. The way the convertible is structured permits us to be diluted into oblivion.