RNWK: From my point of view:
With earnings season upon us, I want to bring up this stock because if they miss (IMO won't happen), but if they do...it will be the buy of the week.
My take on this media space is just that...one has to look at it as if we went back to silent films. The kingpins of that industry are the ones who used and adopted (sound in that case) early on.
Now, these same kingpins are looking at the Internet as the second coming, and are using the same principles as before. Adopt and use early.
This is where RNWK is, and IMO always will always be THE dominant company in this space. Why? Because they saw to it that the proliferation of their technology, put in the hands of early adopters, would put them "at the top of the food chain" as 'WIRED'
magazine puts it in the "I want my MP3" issue (in bookstores now).
RNWK is changing the landscape of media delivery, and with its latest coups with MSFT and IBM, is the keynote speaker in a board room of wannabes. (I didn't mean that to sound harsh, just intuitive).
What about the stock price? IMO, I put these worries to bed before I bought (I own at $64)....takeover candidate? Yes, but won't happen because Glaser (CEO) has his "ecosystem" in constant focus, and doesn't want to hand over what is now a momentus shift in media.
Valuation? Get over it, the concept to grasp here, is that this is a revolution (think TV vs radio). I believe this shift is WAY to early in this space to be pinpointing a price valuation. Find a price YOU are happy with, and wait 'till it finds that level to buy it...mind you I am a long-term focused investor but am looking to buy leaders on sale.
Competitors? Always, and one should hope always will be, this is how the envelope gets pushed to create, (and how Glaser gets his troups fired up). RNWK is YEARS ahead of everyone else, use that excuse to your advantage if the stock gets cheap because of that story.
All in all, that's some of things I wanted to point out about RNWK.
Thanks for listening,
John Beule |
