BlueStone Capital Initiates Research Coverage of Interactive Magic, Inc. with a Buy Recommendation.NEW YORK--(BUSINESS WIRE)--Aug. 17, 1998--Senior Analyst, Steven A. Jaworski of BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners, L.P. initiates coverage of Interactive Magic, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :IMGK), with a BUY rating, and a 12 month price target of $14.50 to $15.50. Interactive Magic develops, publishes and distributes interactive real-time 3D entertainment software, focusing on simulation and strategy games for CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). and online/internet use. CD-ROM products are sold through a worldwide retail distribution network with exposure to over 15,000 retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → in more than 30 countries. Following is a summary of Steven A. Jaworski's Report: - Initiating coverage with a BUY recommendation and a 12 month price target of $14.50 to $15.50. - IMGK has positioned itself as a leader in the simulation and strategy niche of the PC gaming industry with 26 published titles in three years. Sector growth is expected to approximate 20% into the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future as home PC ownership continues to proliferate pro·lif·er·ate v. To grow or multiply by rapidly producing new tissue, parts, cells, or offspring. and game ownership per PC owner increases. - IMGK represents a play in the burgeoning pay-for-play Internet gaming market. Award winning proprietary MEGAplayer technology allows hundreds of players to compete online in the same theater of action simultaneously currently though the iMagic Online subsidiary. We view the pending agreement with America Online's pay-for-play game site as validation of IMGK's technology and as a revenue springboard. Seven new online games are scheduled for release by the end of 1999. We see online related revenues tripling in FY99 to almost $8 million. Bundling agreements with Microsoft and Logitech will increase exposure of online games significantly to current PC gamers PC Gamer is a magazine founded in 1993 devoted to PC gaming and published monthly by Future Publishing. The magazine features news on developments in the video game industry, previews of new games, and reviews of the latest popular PC games, along with other features . - Aided by an increased Internet presence and the rollout of new PC game offerings, we expect IMGK to become profitable next quarter (Q3 FY98). For the year we see a loss of $0.04, down from 1997's loss of $0.68. Going forward we estimate earnings of $0.37 a share in 1999. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to emerging growth and medium size companies worldwide. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. BlueStone Capital has performed investment banking services for InterActive Magic, Inc. for which the firm received a fee.
CONTACT: BlueStone Capital, New York
Steven A. Jaworski, Senior Research Analyst
212/850-0566
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