Superscape becoming Supercharged?

Edmund J

It's reassuring to see someone of your investing stature showing continued faith in Superscape.

I don't have your pedigree, and despite being convinced myself that SPS are on track, and are delivering, of course the Share Price is kicking me in the proverbials. It's sometimes difficult to convince myself I'm not crazy in the face of the slide these past 12 mths.

Do you get the feel that SPS want to go it alone?, or at least until they've built the business into something worth selling at a decent premium ( ie £1 plus once they've demonstrated decent profitability - say in 12mths time, surely your figure of £15 m revenue would support such an SP)

Could it be that Lazards was the big investors revenge for being let down in the summer - and their way of ensuring things were not really getting out of hand?

L & G reducing could be for any number of reasons, and as you point out, even they get it wrong. Undoubtedly though, they have put the mockers on the SP rise by flooding the mkt this last few days, hopefully that will soon clear.

You make a point about the mkt as a whole not fully appreciating the significance of being the 3D leader. I have long believed that and although I have no idea of the technology, I can imagine that developing and porting these things isn;'t so easy. I wonder that EA have paid for jamdat when they had their own IP aplenty - could it be that for all their might, it's not so easy to just transfer a video game to the mobile platform?

We used to have regular visits here from various posters, pointing out the weakness of SPS IP going forward. We now have the worlwide No 1 name in Football, Bowling, Stunt Driving and also in Boxing - and such titles as Callaway golf aren't too shabby either. Jamdat have demonstrated that the shelf life of these titles is much longer than previously supposed which is a big bonus.

The big driver, again as proven by jamdat, is the handset sales and the rapid changeover to 3D capable phones which make all these games come to life - and we can expect a big spike in sales NOW and through january.

I think the trading statement has reassured those of us who keep tabs on deployments, and the mobile gaming mkt in general - but the bare figures of £888,000 in publishing revenues are NOT ENOUGH on their own for the general mkt to be convinced. IF and WHEN Superscape can achieve their Oct estimate figures for Year Ending in january 06 I would expect we would then see a major correction in the Share Price.

The rate of new deployments over the last two months has been impressive, Jon's table is already around the 265 mark, another 6 mths at the same rate and we'll be well over 500 - and there's still some juicy areas to increase into - China Unicom, Mobile and NTT DoCoMo offer a huge number of subscribers.

It really is difficult to see how we'll have to suffer in 06 like we have in 05, but there again, this time last year I thought we'd cracked it as well.


TBB