Replies to post #10273 on Left Behind Games (fka LFBG)

[Raingawd]

We already know that the execs at Digital had to mortgage their houses to pay company bills. Do your homework.
What's in this deal for Digital? They have far better games, far better marketing, far better management, and a far better reputation of delivery quality to the market.
So why merge with LFBG? Public listing. What does being public do for them? It gives them access to capital that they so desperately need. How does it give them access to capital? SHARE ISSUANCE! Yes. Plain and Simple.
LFBG has nothing else for Digital. DP is a far superior co. with one major flaw. They never went public. Now that their bottom line is hurting (note they had to borrow a chunk from LFBG not long ago to keep the lights on) they need capital. Merging with LFBG gives them access to their public investor market and their shares. Might just be enough, a major issuance of say, 1.5 billion shares more, to pay the bills and keep the dream alive.
No problem, just R/S, then change the name of the company and start fresh. Regular old rinse and repeat for Pinkies.

[greedy__malone]

noquit it is fairly simple.

One uses reasonable logic in coming up with a fair assumption of Digital Praise's condition.

Perhaps, if/when the merger closes and you finally get to see these numbers for yourself you may ask how we knew. Until then, it is easy to put on rose colored glasses and dream a little dream.

A rock solid company would never devalue their company by merging into a train wreck. When a company merges into a train wreck and the train wreck conductor remains in charge it is a signal that neither company is in a very strong position.

This has the appearance of being a merger of convenience where LFBG will use the revenues of DP as new hype for another "fresh start".

Just my opinion obviously but there is no way this company can thrive with 3 billion O/S on the revenues from DP.

It is obvious the Christian game market is limited and it is obvious that no major breakthrough is coming in the near future. That means more "business as usual" which includes using stock as a form of currency.

That is exactly what it looks like and in this market, if it looks to be that way it almost always is. Betting against the trend in the penny market for the short or long term is financial suicide.

You get in and out when it is going up and you stay away when it is going down. The old "catch the falling knife" routine usually ends up in a blood bath.