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Infinium Targets Gamers For Stock Purchase After Split
Thanks to HeraldTribune.com for its article discussing the continuing fortunes of PC 'game console' manufacturer Infinium, following much controversy over their forthcoming Phantom console in recent weeks. Infinium CEO Timothy Roberts is quoted as saying, following a "four-for-one stock split", the second of the year, that "...part of Infinium's stock marketing effort will be aimed at video game aficionados, people who have contacted the company via e-mail because they are interested in using the product when it is rolled out and who may also have expressed interest in making a stock investment." With regard to this, it seems that, judging by current prices, "...even before it has a product to sell, Infinium has a market capitalization of $133 million ($5.80 times 23 million shares)."
Seriously, can't I just make my checks out to directly to Neil Bush, the Russian mob, and or Nigerian Colonels?
So you are telling me a "Phantom" console game that may not even exists has a market capitalization of $133 million while SCO, who is taking on Linux has a market cap of $127 million? Ha!
"Engineers do the work of man, Physicists do the work of God"
1) Sell shares to suckers (er, sorry, I meant gamers).
2) Release some random computers cleverly disguised as mock-ups of a 'gaming console'.
3) Sue Nintendo, Microsoft, and Sony for stealing their core operating system design (and later expand into suing big users who are using these consoles - maybe check out some Eastern countries to see if they are using clusters of Playstations as weapon guidance systems).
4) Profit.
Why would I want stock in a company that has yet to have a real, manufactured, product. Demos don't count; I can make my own game system in my garage. I would much put my money on finding oil in the Dead Sea, the odds are actually not that bad.
"Jeremy, you need to get to an internet cafe and cut and paste some appropriate sentiments about me from the world wide
After the way Infinium Labs has treated [H]ardOCP, I have to suggest to the stock analysts never, under any circumstances, to give this stock a 'Sell' recommendation, lest Infinium's legal department threaten suit for defamation. ... Ooh, I just heard the doorbell; I think I'm being served!
Actually I think that loosely translates to "We at Infinium believe that our company stock will sell best to those people who have no knowledge of investment, corporate economics, or business management. We anticipate our sales to these boobs to comprise 99% of our total market cap."
Why the F would anyone with even half a brain buy stock in an entity that has no discernible worth?
Look at the investor relations part of their website and try to stay objective (re: their only product, the Phantom).
What have you learned? The company operates in the "video game industry".
What assets does it have? IPRs, fixed assets, intellectual capital, property, manufacturing plant, etc., etc.?
What contracts has it entered into? Where are the revenue bearing lucrative exclusive distribution deals?
Where are the promotional tie ins with component manufacturers? (I would imagine any deal with third party hardware providers or other technology standard providers would promote a veritable avalanche of cross branding, i.e. ATi, nVidia, DirectX, USB 2.0, Creative EAX, Miles, etc. etc.)
What employees does it have? Who are its auditors? Who are its lawyers?
They seem to be asking for money on the promise that some poorly aimed marketing message will ignite a rapid hand-to-wallet movement. I think they have forgotten that gamers need more proof before they part with their cash.
Having said that, if they roll the console out and it turns out to be everything that they claim, well then I'll be first in the queue with my credit card in once hand and my humble pie fork in the other.
Hmmm, I was thinking. $120+ Million in Venture Capital is absolutely nothing in terms of what is necessary to produce AND more importantly PROMOTE a brand new game system. Shit, some of the higher end games cost $40 million to make and market. Even if the "Phantom" had access to EVERY GAME EVER MADE, who would buy it? After all, you never actually own any game, it's all downloaded. I would actually invest my money in a pinball manufacturer right now (sales are doing great) than bet on the Phantom.
"Jeremy, you need to get to an internet cafe and cut and paste some appropriate sentiments about me from the world wide
It seems like the boys from the movie "Boiler Room" have found a new pump and dump stock scheme.
Not that I'm going to ever invest in such a shoddy company, but lets suppose you did.
You just invested 500 bucks in Infinitium Labs, or whatever they call themselves today. There are two simple possibilities: one, they sink someplace in the middle; two, they get to India by Sea by going across the Atlantic Ocean.
The Metaphor is sound. There are people who will take the risk because it's cheap right now, on the premise that there's a small, small chance that this will be one of the best investments of their life. Granted, it's small, and the company is really skuzzbucket, but if they do in fact pull off what they're saying they're going to pull off, they might change the console industry forever - and make you, the investor, a lot of cash money in the process.
Just playing Devil's Advocate.
Dear Sir:
I have been requested by Infinium Labs to contact you for assistance in resolving a matter. Infinium has recently concluded a large number of contracts to supply video game machines to end users. The contracts have immediately produced moneys equalling US$133,000,000. Infinium is desirous of selling their machines in other parts of the world, however, because of certain regulations of the Nigerian Government, it is unable to move these funds to another region.
You assistance is requested as a non-Nigerian citizen to assist Infinium in moving these funds out of Nigeria. If the funds can be transferred to your name, in your United States account, then you can forward the funds as directed by Infinium. In exchange for your accomodating services, Infinium would agree to allow you to retain 10%, or US$13.3 million of this amount.
However, to be a legitimate transferee of these moneys according to Nigerian law, you must presently be a purchaser of at least US$100,000 of Infinium stock.
If it will be possible for you to assist us, we would be most grateful. We suggest that you meet with us in person in Lagos, and that during your visit I introduce you to the representatives of Infinium which produce the good Phantom product, as well as with the creators of Duke Nukem Forever, a partner company.
Please call me at your earliest convenience. Time is of the essence in this matter; very quickly the Nigerian Government will realize that Infinium is maintaining this amount on deposit, and attempt to levy certain depository taxes on it.
Yours truly, etc.
Timothy Roberts
CEO, Infinium Labs
I remember standing outside my old office having a friend explain to me how I, little old me, could become a multi-millionaire. Stocks, splits, shares, options, blah blah blah.
Now, a year or so later, the only multi-millionaires are the brainiacs who ran the business into the ground but did it so convincingly that they walked off with the only value the company had left. It almost seemed a distinct negative correlation between the how hard someone worked and how talented you were to how well the company would treat you in the end.
The guy spending 70+ hours a week writing OO code? Fired without notice, 3 month serverence.
The "turn around genius" office manager who spent an entire year flying first class and never managed to land a single client? His $300,000+ salary was paid to him for a year after the office folded.
And the top execs all pulled their golden chords, made millions, and bought fast food chains or notwhat.
Hey Infinium. Bite me. I've heard this nonsense before.
Nice, but in the future, use ALL CAPS (either the whole thing or special words like INFINIUM and PHANTOM) and start with "Greetings and good season to you" or something weird like that.
This is not my sig.
Well, first you'd have to figure out how to divide by zero.