» Sat Mar 14, 2009 12:05 am
Mik,
Check out some of the discussions on ragingbull about this. My thoughts are that with law suits like the one between gamesas and Bethesda, there is rarely a slam dunk, easy winner. I think this will have to be settled with neither side claiming ultimate victory. But, even if Bethesda were to win it all and gamesas lost all rights to the Fallout MMORPG, it is not necessarily game over for gamesas. Masthead studios might still have to fund the game (not sure about the specifics of the contract), and gamesas could release a generic post apocaplytic game.
Based on the stock price, the whole company of gamesas is currently valued at 5 million dollars, which is pretty ridiculous. Earthworm Jim alone is worth more than that not to mention Descent, MDK, and others. I think gamesas is worth at least 10-15 million, even in a worst case scenario fire sale, (this would put the stock at .10), where gamesas is forced to sell the company or face bankruptcy. Keep in mind there are only 100 million or so shares of gamesas and the CEO, Herve Caen, has around 20 million shares. I think that Herve has a backup plan, if everything were to fall apart, which would be to sell the company and make something out of his 20 million shares. He certainly is not going to let the company go bankrupt and lose out on the value of his 20 million shares, without selling to someone, even if he gets ripped off on the price. So, my thoughts are that, buying gamesas stock at this price is cheap and worst case scenario is gamesas sells the company for 10 million, resulting in a 50% profit, not to mention if the company that takes them over further takes off. Of course, never a guarantee with anything in stocks or this market, but I feel pretty confident buying gamesas at the current price of 5 cents a share.