Richard, you're right; that's quite a line up of
stock talent behind GLMC. Pushy broad that I am,
I'm not waiting for Alert Investor to post his
write up. His SBAS pick has gained 400% in about
7 weeks, so let's see what GLMC does.
Here is the review by Peter Kertes. Emphasis is mine.
--Madly
(AE can be viewed at
207.158.234.93
it says at the bottom of the profile)
THIS WEEK'S PICK
Most web shoppers will do 25-50% of their holiday shopping online this
year, spending $100-$500 each, according to the Gartner Group. A new study
from the Center for Research in Electronic Commerce says the U.S. internet
economy will exceed $500 billion this year, and music bought via the
internet will account for an estimated 11% of global music sales by 2005,
compared with less than 0.5% last year. As we move inexorably towards
media convergence on the web and as our computer begins to increasingly
take the place of our TV and radio, what would you say the domain name
globalmedia.com is worth? If business.com is worth $7.5M, would you say
it's worth $5M? Maybe $10M? What if you also learned that the company that
owns the domain name is also the second largest web-radio site, with over
100 stations of all formats in its Global Media Network, and growing
daily? Or if you learned that the company, barely out of the development
stage and sporting a market cap of a measly $115M, is the most advanced in
having moved its streaming media software suite onto the Linux platform?
And to top it all off, what if you learned that their Global Media Player,
developed specifically for them by RealNetworks, has already been
downloaded by 1,000,000 listeners and is used by 100,000 people daily?
DAILY !!... Powerful stuff. globalmedia.com
Global Media (GLMC, 5 11/16,BB), our exciting 2nd generation web stock
pick, has developed a business model that marries streaming media with
e-commerce in a completely synergistic fashion. It is without question one
of most exciting models on the web. The company has raised over $10
million in the last few months for its future growth. This includes a $2M
investment announced just this Friday from Standard Radio, Canada's
highest-rated network, in a deal that includes GLMC providing "both its
streaming and e-commerce solutions to all radio stations owned by Standard
Radio".
GLMC makes software tools that content producers can use for their
interactive audio video web sites. The company has partnered with some of
the Internet's biggest companies, such as RealNetworks, MCI Worldcom,
Liquid Audio and Exodus. For both its broadcasting and e-commerce
solutions, Global Media has developed leading edge systems based on the
Linux operating system, which is about as cutting edge as it gets, so they
must have some real aces working for them. More stable and scalable than
alternative operating systems, the open-source code Linux O/S is quickly
becoming the operating system of choice for large-scale computing
applications. Linux streaming technology allows your RealPlayer to make
the music flow smoothly, and it plays as it downloads. "The average time
spent listening to Global Media has more than doubled in the last two
weeks. The average number of concurrent listeners has also increased by a
rate of 210% a week, with the last week in November averaging over 100,000
player accesses daily". In addition, since GLMC is a quintessential
business to business (B2B) web play, it's worth adding that it increased
the new Business-to-Business Network Associates it signed up by over 30.
These include Moviehead.com (an integrated movie site, rated as one of the
top 10 on the Net, receiving 100,000 unique visitors a day) and
MP3board.com (MP3's site extraordinaire, receiving 800,000 hits a day).
GLMC is fully reporting but is hardly known by the investment community at
this point. It is the winner of this year's prestigious Linux ''Best
Overall Solution'' award at Comdex '99, defeating Red Hat and Corel, both
household names with stratospheric price-to-sales ratios. GLMC has also
been invited to write a technical article for the January, 2000 issue of
Linux Journal, the industry standard trade journal for the community of
programmers and users of the Linux operating system. The easiest way to
understand the Linux angle is to realize that every application needs to
be written in a code and that anything you want to do in software requires
an application. Your O/S is just a giant application that does multiple
tasks. There are 3 major O/S languages - Mac, VB (Windows), and Linux,
with the latter being the darling of the software developers (since it's
free, collaborative and ubiquitous) and, increasingly, also the darling of
the investment community. So now, you've got a leading edge Linux-based
streaming video play with a network growing like a weed and a major
on-going e-commerce effort, all with a pitifully low market cap, close to
the year's lows. As concept stocks go, this one's a doozy! One of those
"buy and forget about it for a while", in my opinion.
Regular readers of this newsletter know that we like to delve into numbers
as much as any Wall St. analyst, but in the case of GLMC, with 19M shares
outstanding and developing new alliances daily, meaningful forecasts are
hard to come by. More importantly, forecasts are not really the point, as
we go into 2000. For now, this investment will do extremely well as a pure
concept stock - no different than the 100's of IPO's that came to market
like Saturn moonshots...
GLMC's chart formed an excellent 6-month base between 5 1/2 and 8 and the
stock actually had a false break-down 2 weeks ago, tumbling to 4. But
then, in order to accommodate this newsletter's readers, it turned right
around on rising volume and now the stochastics are extremely positive
(L-T at 85) and still improving. Given the slowly declining channel trend
of the past few months, the chart won't turn bullish until the stock moves
past 6 1/2 again, however, with tax selling apparently over and with the
most recent press release highlighting the tremendous traffic on GLMC
web-radio, that is a matter of a couple of weeks, at most. The MACD is
still a negative 0.50 but it is improving already. A chartist would simply
like to see some volume come into the stock to able to give a "Buy"
signal. Once that happens, it's "all systems go" for a move past 8 1/2 and
a test of the old highs at 11. It's likely to happen rather quickly, so
don't hesitate to get on board. And don't be hasty to jump off board
either, this stock has the potential to be a barn-burner in 2000. |
