Since NATIONAL AMUSEMENTS INC wants to buy all available shares...
Ram
Good time to buy?
Ram
Bought in today. "Bad earnings" pushed the price down so jumped in quickly.
Ram
Pretty amazing stuff.
Ram
Good for you, ramlau!
:D ;D ;D ;D :D
Congratulations.
great job ramlau 8) I wonder if NATIONAL AMUSEMENTS INC backed u up ;)
(applaud)
Thanks guys! It's looking quite green on my screen right now. (And I'm liking it!)
National Amusements and its owner Sunmner Redstone definitely backed me up. The stock has gone up from single digit to $14 yesterday ever since that multibillionaire started buying 80-100k everyday *religiously* for months. (He's Jewish but no pun intended!)
http://biz.yahoo.com/t/41/849.html
So he wants to buy up the whole thing, and doesn't mind spending a billion for it.
Ram
FEBRUARY 22, 2005
NEWS ANALYSIS :TECH
Sumner Redstone, Video-Game Whiz
The Viacom honcho, who has a big piece of Midway Games, explains why gaming is the new competitor for Hollywood and the networks
It would be hard to find a video-game enthusiast more unlikely than Sumner Redstone. The 81-year-old chairman and CEO of Viacom (VIA ) made his fortune in theaters, then built an empire by buying such traditional media assets as the Paramount studio, CBS TV, and book publisher Simon & Schuster. But last May, Redstone increased his stake in Chicago-based Midway Games (MWY ), taking control of the company that makes the successful video game Mortal Kombat but has been a longtime industry laggard, with $276 million in losses over the last four years.
Now, Midway seems to be in the midst of a turnaround under 41-year-old CEO David Zucker. The former Playboy Enterprises (PLA ) executive was hired in mid-2003 and has beefed up Midway with the purchase of smaller game companies, expanded its overseas presence, and signed agreements for new properties upon which to base games. Midway's stock has more than tripled in the last year, and there's talk of the company being a potential acquisition target, likely by Viacom (see BW, 2/18/05, "Game Wars").
BusinessWeek Los Angeles Bureau Chief Ron Grover recently met with Redstone at his hilltop mansion in Beverly Hills, Calif. After giving a tour of his house, the media mogul, his long-haired dachshund Murray by his side, sat down and explained why he's such a fan of the video-game industry -- even though he has never played such a game himself. Edited excerpts of their conversation follow:
Q: What got you interested in the video-game industry?
A: In many ways, the game industry has a lot in common with the studio industry, although as you know [video game] revenues have well outpaced box office. There is a lot in common, including the whole business of creating a buzz and advertising being so important.
Q: Why Midway?
A: The last time I bought some of the stock was about 10 minutes ago. I really like the company. And David Zucker has taken this company -- which was hardly known a year ago -- and transformed it into a company that's on the cutting edge of everything important in this industry. And it is doing better financially.
A year-and-a-half or two years ago, the company was rated [by critics at various video-game magazines] as No. 20 in quality. Today, it's rated No. 1 -- ahead of [industry leader] Electronic Arts (ERTS ). And that's important -- not just in the gaming world, but to big conglomerates like Warner (TWX ) or Disney (DIS ) or Viacom or whatever. Midway turned profitable in the fourth quarter after being unprofitable under prior management, and revenues are escalating at a pretty rapid rate. And it will continue.
Q: And what will you do with the company now?
A: I don't have any information that is not public. I have told David to never give me any material inside information. But I can see that revenues are escalating at a very rapid pace, and I can see something else: Any [media] company that doesn't recognize that games by companies like Midway are competing with them for both audience and advertising has its head in the sand. And this company has a number of great franchises -- and not just Mortal Kombat, but Midway Rush and now LA Rush and the game Fear and Respect. I think that David is doing everything right. But he more than anyone else has seen the convergence of the studio and game industries.
Q: Convergence?
A: Yes, the first person who got me thinking about that was Richard Parsons at Time Warner. I recall watching CNBC (NBC ), and someone asked him, "Does your company lack anything?" And he said, "Yes, gaming." So he was one of the first to see the advantage of the convergence of the studio and the gaming industries.
Paramount is making a movie about Area 51, which is a sensational game. Speaking of that, I have nothing to do with those decisions. I have absented myself completely. [Because Redstone also owns a 70% stake in Viacom, he has recused himself from Viacom discussions concerning Midway to avoid conflicts of interest. Those discussions are handled by an independent committee of the Viacom board.] A Paramount executive really liked the game and called Zucker.
Q: Does the game industry threaten TV?
A: Right now, there are as many young men playing these games as there are watching television. Our company, because of CBS and MTV, I doubt has lost anything so far. But pretty soon more men will be playing games than watching TV, which is why I think that all of the major companies will buy a game company. They're the fastest-growing part of the entertainment industry and are competing with [traditional entertainment] companies both for audience and advertising. So I think that sooner or later, smart companies will get into this business themselves.
Q: Even as expensive as the game companies have become? Electronic Arts has a huge market cap.
A: Look, I think that the one company -- and this is just a personal opinion -- that is not likely to be bought is EA. In fact, I think that Viacom made a statement publicly that it was not interested in buying EA because it would cost at least $20 billion.
Midway would cost $1 billion. I'm not saying that it would cost a billion to buy it, that's the market cap. If I'm the seller, it will cost a lot more.
lol...awesome interview... this seems like the safest place to put your money..this guy buys all the dips! and he's telling you that its going to be bought out. Great! I hope I'm half as cool when I'm 81 :D
I know right. The only determinant that decides where this stock will go is how long it's gonna take for Redstone to buy out the entire float.
I'm being very patient with him.
Ram
What's the rationale to short this stock? The only hope to kill the stock is to kill Redstone. Are the shorts that cynical?
Ram
Up another 3% today... I just wish I was in more, and earlier.
Ram
http://biz.yahoo.com/e/050809/mwy10-q.html
Majority Stockholder
Sumner M. Redstone, our largest stockholder, reported that his aggregate beneficial holdings exceeded 81% of our outstanding voting securities as of June 30, 2005. Mr. Redstone, through his affiliate, National Amusements, Inc., has continued to purchase additional shares of our common stock through the date of this report. See Part II, Item 2 for details of Mr. Redstone's purchases during the three-months ended June 30, 2005. As the majority voting stockholder of Midway, Mr. Redstone can change our business strategies and policies, select all of the members of our Board of Directors and control all other stockholder votes. If Mr. Redstone were to cease purchasing our shares of common stock, the market price of our common stock could decline. If Mr. Redstone were to dispose of shares of our common stock, the market price of our common stock would likely decline. If he were to sell his shares, the purchaser or purchasers might change our business strategies. Mr. Redstone reported in 2004 that he had engaged a financial advisor to provide services in connection with the evaluation of a possible "going private" or other transaction in which Mr. Redstone would acquire more than eighty percent of the issued and outstanding equity of Midway. Mr. Redstone has also stated that Midway could be considered as a potential Viacom acquisition candidate. Mr. Redstone is the Chairman of the Board and Chief Executive Officer of Viacom. An independent committee of Viacom's board of directors has been formed to consider any proposed transactions or business arrangements with Midway. Midway has also formed an independent committee to consider any proposed transactions or business arrangements with Mr. Redstone or any of his affiliates.
The Redstone charity run continues.
Ram
lol thats great ramlau..looks like its going parabolic. You may get a nice move up or gap up one of these days. very cool 8) have to applaud again.
I applaud back eliteG. What do you make of RTIX and BKHM? Bought RTIX earlier today and veyr tempted to take a position in BKHM. (I remember the stock way back during the Trudy days on the monkey's yahoo group.)
Ram
I was thinking of taking a position in RTIX earlier today too.. then it ran away. Its got resistance here but it might shoot up to 10 real quick when the shorty have to cover. BKHM looked good yesterday and today. You might get support around 4. I am watching AGIX for some signs of life.
Aright so we have RTIX, AGIX, and how about MTIX? Today's run seems to signal that it will challenge the 52-week high again.
Ram
for a run like that I like some more volume..it looks solid for some ups but that volume is just not for me.
Yet another hot and sunny day in NYC.
MWY continues to shine when the market stinks. Almost touched $15 at open. Even RTIX is holding up okay despite the selling.
Ram
Redstone's taking the stock to the 15th floor today. Time for the September calls?
Ram
http://www.insidercow.com/
Thanks goldie. I actually picked some up the other day.
Ainke DOES have the power! ;D
Good luck, chart looks great.
I previously sold for a small profit but am ready to jump back in again.
Good support around the $13.80 level. It's currently just below the 50(MA) ...around $14.50 as of today.
a good day...would like to see more volume but i'm happy, nonetheless.
Amazing insider buying!
http://www.secform4.com/insider/showhistory.php?symbol=mwy
I definately support our soldiers! ;D
"Three Soldiers" candlestick pattern:
I have been watching this stock and it is relentless. Inches up...slowly and steadily.
The almost huge daily insider buys are very peculiar...how much can one buy? And is this the main reason for the pps steady increase.
http://www.secform4.com/insider/showhistory.php?symbol=mwy
Should we just buy and hold this for a few months? Could continue in this same upward fashion?
Any thoughts on this? And did anyone get in at some point? I see its been mentioned several times in different threads.
thanks very much
julia
I like MWY right here around 17.50. I think the stock is finished consolidating after the announcement that Sumner Redstone has decreased his stake in the company. I think the stock is basing here at $17.50 and we should expect some kind of bounce soon. I am not so confident for the long-term prospects here but I think this is a good short-term trade.
Time to buy. I bought a lot today. Will do the calls on Wednesday.
Ram
(http://ichart.finance.yahoo.com/z?s=MWY&t=1y&q=c&l=on&z=m&p=m20,m50,m10,b&a=vm,m26-12-9,r14,ss)
http://biz.yahoo.com/ap/060630/midway_games_mover.html?.v=1
Midway Games Up on Insider Trade
Friday June 30, 2:31 pm ET
Midway Games Shares Gain As Sumner Redstone's National Amusements Increases Its Stake
NEW YORK (AP) -- Midway Games Inc., the company that brought Pac-Man to U.S. arcades in 1980, saw shares climb Friday following a small insider stock purchase.
Shares of the Chicago-based video game company was up 75 cents, or 10.1 percent, to $8.16 in afternoon trading on the Nasdaq, after trading as high as $8.32 earlier in the session. Volume was nearly double average daily trading.
Midway shares have ranged between $5.85 and $23.73 in the past year.
In a regulatory filing with the Securities and Exchange Commission late Thursday, National Amusements Inc. reported purchasing about 56,000 additional shares of Midway. Privately held National Amusements is controlled by media mogul Sumner Redstone, chairman of the board at both Viacom Inc. and CBS Corp.
National Amusements is also the controlling shareholder of both Viacom and CBS.
Redstone and National Amusements already hold 80 million, or 87.6 percent, of Midway's outstanding shares, which he has been accumulating for the past two years.
The company, which also publishes the one-on-one fighting game Mortal Kombat, announced Tuesday it elected Robert J. Steele to its board of directors. Steele, 52, has been vice president of strategy and corporate development of National Amusements since January 2004.
Midway's board also includes Shari Redstone, Sumner Redstone's daughter, as its vice chair. She is also president of National Amusements and a member of its board.
And it shot thru $10 in no time.
Ram
This thing is getting expensive.
Ram
some hi volume selling today - but still not much of a drop!
http://finance.yahoo.com/q?s=mwy
Howdie
Since May 23 do we have a good Cup with Handle forming, as the handle tightens and drops slightly for the break-out up!!
Learning to read the Candles and patterns, does anyone else see this as a valid pattern? Has there been enough time for it to be a good pattern? (look out above especially if the insider buying returns!!)
Cheers Joe
I have to flip-flop on this one. Redstone stopped buying since last Friday, and the short-term movement of the stock is unpredictable. I will not re-enter unless there's a better understanding of why he bought the stock for a few days and then stopped.
Ram
Bottom?
"MWY" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;)
All history on a stock pick in 1 thread is awesome. 8)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. ;)
Thank You....and good luck with all your trades....make some $$$ ;D
Breaking out today ;D
MWY acting bullish ;D
Close above 8$ will bring volume in :)
Success of the Batman movie should help move this stock.......
52wk Range: 1.53 - 6.48
Volume: 748,870
Avg Vol (3m): 175,673
Technicals
Percentage Gainer
Last Price Quote is:
54.14%above 13-day MA
64.81%above 50-day MA
RS Rating: 95
Fundamentals
Key Data:
Market Cap (M): $270.10
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 08/07/2008
Last Analyst Rating: Hold