Rande & all....it would appear that the general concesus here is that 2001 will be a "picker's" market....finding those companies that will succeed in 2001 amidst all of the market trends is no easy task.
My portfolios have been beaten pretty soundly in the past months....enough to drive any law abiding general contractor into smashing his fingers with his hammer or cutting them off with his saw. But I like the market and what investing has to offer in the long-term, so I decided to save my fingers and stay focused on the task at hand.
Finding a few "winners" for 2001.
One company that I have followed for some time (thankfully making a little $ along the way) is ITRU....I've posted recently that I like them, but I figured it was time to make a rudimentary presentation about them.
InterTrust Technologies is Digital Rights Management software company -
intertrust.com
While e-commerce has become a four-letter word, my belief is that e-commerce will not disappear from the internet world, but rather take on different forms as it grows....the demise of hundreds of dot-coms is akin to the weeding of my wife's garden, so I don't see the entire e-commerce concept as faulty, merely the bloated excess of many of its branches.
The whole Napster affair has brought about awareness of the "importance" of rights protections....big business wants to remain big business....and with the proliferation of digital devices coming (as in this article link provided by someone here at HOME)-http://www.ce.org/newsroom/newsloader.asp?newsfile=7058
rights management will play a large part in the viability and profitability of portable devices.
For a good understanding of DRM, I found a company that provides a diversity of services in this arena -
reciprocal.com
It would be worthwhile/educational to read through many of their links....that way, I don't waste anyone's time by trying to regurgitate information better explained elsewhere. Also, it would be worthwhile to read through Microsoft's offerings for more DRM info:
microsoft.com
Microsoft also provides DRM software, in the form of its Windows Media Rights Manager....and one thought I've had is that Microsoft can bundle its software into other packages and essentially give it away for free....Netscape knows something about this <g>....but Microsoft obviously didn't fare well politically for this method, so it would seem that InterTrust may survive this tactic.
However, I don't know enough to say which product is "better." So, it would seem right to look at the alliances and partnerships being made. Here is a list of ITRU's in the portable player arena:
biz.yahoo.com
Also, here is their PR with Adobe:
biz.yahoo.com
So you have the likes of Compaq, Adobe, BMG....one thing I haven't answered yet is how MSFT and ITRU can both have relationships in the portable player arena with the same companies (compaq IPAQ 01/04/01 release as an example):
microsoft.com
webnoize.com
Unless the software is able to integrate, or at least share space, or did Compaq switch to ITRU, or....
The difficulty, as usual, is finding the revenue streams....the Napster issues are still not fully resolved.
But, IMO the music rights issues are just the tip of the DRM iceburg....
ITRU has relationships with AOL (and eventually TWX) and Blockbuster, Philips, etc. for video, publishing:
intertrust.com
as well as further DRM video through its acquisition of Passedge from INTC:
biz.yahoo.com
ITRU is developing DRM solutions for the healthcare industry as well:
biz.yahoo.com
The list of relationships seems endless, however reveneue speaks volumes these days....I'm researching those avenues, but I believe the potential is there.
And that is the key - potential. For a stock at these levels, I'll take the risk....
There are many more things to be said about ITRU, but presentations have never been my strong suit.
Disclaimer: I have a good sized position established the first week of January '01 when ITRU was in the 3's....this was at the time that the MIT professor on CNBC-zure presented DRM as a cutting-edge technology (but I promise I didn't use his testimony as impetus to begin an investment).
As always, do your own DD.
And, opinions appreciated.
Wes |
