Age of Conan

It's amazing.  Cobra recently said Funcom had 6M in profits last quarter and it has 36M in cash in the bank.  Yet someone could buy the entire company for 20M right now.

Seems to me something is wrong..  Why wouldn't someone just pay the 20M for funcom, then take the 36M out the bank (wooohoooo 80% profit in one day) and then collect the 6M every 3 months.

Originally posted by Azrile

It's amazing.  Cobra recently said Funcom had 6M in profits last quarter and it has 36M in cash in the bank.  Yet someone could buy the entire company for 20M right now.

Seems to me something is wrong..  Why wouldn't someone just pay the 20M for funcom, then take the 36M out the bank (wooohoooo 80% profit in one day) and then collect the 6M every 3 months.

Well you know which variable in that equation is off

Take your pick

a) Cobra

b) quarterly report

c)  a&b

Reports can be "creatively produced" as the recent finanacial activity in the US shows and Cobra is Cobra.

Originally posted by Azrile

...

Seems to me something is wrong..  Why wouldn't someone just pay the 20M for funcom, then take the 36M out the bank (wooohoooo 80% profit in one day) and then collect the 6M every 3 months.

Probably because most companies have ongoing legal and financial obligations they must meet by law.

Even when you 100% own a company you may not simply withdraw all the cash.
 

In the case of Funcom - the people who purchased 12 month subs are entitled to 12 months of service - that means that Funcom must continue to operate (if at all possible) and that means wages, salaries, overheads and provision for redundancy payouts must be held in reserve (if possible).

The only way out of this is to actually go bankrupt.

Originally posted by Jackdog

Originally posted by AmazingAvery

SCi share price has slumped 92 per cent to, but you know thats not just one game they publish is it :)
 

actually SCi's drop is about 88%. The biggest drop was back in January when it suffered a overnight 62% drop when it announced that takeover talks had ended.That company had some good titles such as Deus Ex, Hitman and of course  the old Tomb Raider games back in the 90's and early this decade but hasn't had much else to brag about for several years now. Kane and Lynch was not exactly a runaway hit and that is the last title I can remember from them.

here is a article about their big drop

www.gamasutra.com/php-bin/news_index.php

and it has steadily declined since then, no major drops but not increasing either. Looking at their recent title this is no surprise.

investing.businessweek.com/research/stocks/charts/charts.asp

As I keep pointing out FC's drop happened just after the release when people refused to subscribe and the population dropped like a rock. You got to look at the time line and see what events precipitated the changes, things usually happen for a reason. SCi's was because they canceled takeover talks. Other game companies that have had drops in September when most stocks had a drop

Comparing Funcom to Eidos is like saying yeah our stock sucks but theirs does too. Anyway you cut it both companies stock sucks for the same reason, they have been releasing crap games. At least Eidos had some pretty big hits a few years back , which is more than FC will ever be able to say.

By the way for the monetarily challenged that chart is in GBX or pence sterling and in USD 19GBX is about 29 cents

 

Your post makes a lot of sense. People do tend to sell stocks of a company they think is gonna fail or not doing so well. And if everyone is selling and nobody is buying, then the price is going down. Don't really need much more explanation cause you hit the nail on the head with yours.

Last Trade: 2.75
Trade Time: 2:27pm
Change: 0.06 (2.14%)
Prev Close: 2.81
Open: 2.95
Bid: 2.75
Ask: 2.90
1y Target Est: 3.38
Day's Range: 2.75 - 2.95
52wk Range: 3.48 - 55.50
Volume: 31,130
Avg Vol (3m): 320,033
Market Cap: 115.26M
P/E (ttm): 68.75 x
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Todays close. 2.75 not looking so good. But like I said before, they could air the removal of the servers from the server hotel on live international tv and the fanbois would have a reason that it wouldnt have any effect on the game.

I don't know if Funcom will go bankrupt or not.  Seems like they have a lot of investors.  Me personally, I have a open ended order $1,000 to buy if the price goes to .001 cents a share.  1,000,000 shares would make me a major share holder in Funcom and there is a certain PR guy I would move to fire. 

2.75?! Holy shit. How much lower can it go? I'm sure there has been many people who bought Funcom stock thinking that it couldn't go down anymore. Wasn't there a guy here recently who said Funcom stock cannot drop to less than 10. Those guys lost a lot of money and still the stock keeps going down..

My advice: Sell all your stocks while they still are worth something.

Originally posted by Shannia

I don't know if Funcom will go bankrupt or not.  Seems like they have a lot of investors.  Me personally, I have a open ended order $1,000 to buy if the price goes to .001 cents a share.  1,000,000 shares would make me a major share holder in Funcom and there is a certain PR guy I would move to fire. 

According to the latest financial report they have enough money availble to get through 2009 without taking up loans etc s that's a good indication they won't go bankrupt the first year :P

Originally posted by Crashloop

Originally posted by Shannia

I don't know if Funcom will go bankrupt or not.  Seems like they have a lot of investors.  Me personally, I have a open ended order $1,000 to buy if the price goes to .001 cents a share.  1,000,000 shares would make me a major share holder in Funcom and there is a certain PR guy I would move to fire. 

 

According to the latest financial report they have enough money availble to get through 2009 without taking up loans etc s that's a good indication they won't go bankrupt the first year :P

We will see soon enough.  The 'special' stockholders meeting is in a few weeks and I expect shortly after that to hear about the breakup of Funcom (or at least it going private).

Edit:  Just looked it up.. appears the meeting was yesterday ( for some reason I was thinking the 13th).  I wish someone would've gone to keep us informed :)