Ann: AGI Chairman and CEO AGM Addresses to Shareholders, page-27

Excuse me for being baffled. But if AGI has been losing market share in OZ because "ALL has superior games", then why would the market hammer AGI for losing the guy who has been head of AGI's games during that time? Shouldn't that be good news? Even if AGI's slump is more to do with a gap in its product development (as AGI's CEO claims) rather than anything to do with game quality, isn't the head of game development more than a little responsible for that gap (possible product development delays)?

AGI has been a shorter's darling for more than a year, with 25-50% of daily trades being short sales quite a bit over that time. So, even if this announcement is something to worry about, I wouldn't rely on the market reaction to validate the concern because the market reaction is heavily tainted by short sales. And no, short selling does not help find the market price; it tends to distort by relying on short term sentiment and high leveraging.

Incidentally, JP Morgan reported a couple of days ago that "The broker's channel checks still indicate strong sales growth but earnings forecasts are being reduced to account for lower margins in Australia and more significant investment in the US business."