May 01, 2006

Real Networks - a sleeper music and online gaming play?

The symbol is RNWK . I have owned it in the past and been disappointed but a trend may be developing here.

I received an quick note from a friend that alerted me to the company last week. I have been banging around the site and Yahoo Finance for a grip on the story.

"The company has 1 billion in cash, 100mm debt and profitable subscription online gaming business grew 58% and music download grew 28% all the analysts are downgrading it , only reason given is recent run up in the stock they have an very strong balance sheet and if they get any continued growth in the business the stock is
mis-valued trading here @ 2x cash."

The stock is at 3 year highs and I may nibble myself. I am so biased to the Apple way of music that I have a tough time getting my hands around this one. They have picked some nice fights in their life with Microsoft and now Apple.

The catalyst would be any wins against the Apple way of selling Music and the growth of music and gaming distribution on-line

Any opinions always appreciated.

Comments:
Gaming.

That's where the real power of Real Network lies.

There subscription (music) service is good but the music industry is so psycho you never know what you are going to have rights to. Plus they are trying to raise prices across the board.

You didn't mention that RN a lot of that cash from a Microsoft settlement, not because they have been greatly run...

http://www.microsoft.com/presspass/press/2005/oct05/10-11MSRealPR.mspx


I like the company but I don't love them.
 
their gaming business is also a great asset.

that plus rhapsody

plus the cash

less the debt

less the management

and you'd have a great stock.
 
that last comment was from me

i am right back to you

fred
 
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