Takeover target, page-35

The sense that I got is that they will be launching new products in August at the industry fare and they aren’t fully aware of the importance of having popular games and R and D is very much focused on this . I think the issue is that there most popular game Pac-Man is licensed and therefore they have to pay some of their revenue away and this impacts profits . Like all things AGI will at some stage develops some popular games and revenue will take off , and at present the AUD will support existing revenue and cash flow. So for me I hold for two reasons - one is the quick 30-40% profit from a TO and two is that from a medium term perspective I can see the company recovering and the SP recovering a lot more than 30-40% . It’s a medium term hold and I truly think the upside is far greater than the downside. It makes perfect sense to me why a value manager would be buying and in many ways having someone like Alan Gray in the books will help ensure we all get a good deal from any takeover if it did eventuate. There was an iceberg buyer today so I wouldn’t be surprised to see an annoucement that they have increeaed their holdings