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To: Dale Baker who wrote (600)	3/7/1998 5:15:00 PM
From: jgideon	Read Replies (3) of 118717

Concerning RENT ... - Seems the stock responded by going from 6 to 7 on the Blockbuster news, 17%. Of course, the press release wasn't until a day and a half after the street knew about it. - Press release states "Rentrak will become another source to Blockbuster of pre-recorded video cassettes on a revenue sharing basis". Doesn't indicate how much usage of the Rentrak PPT system is expected or committed to. - EPS estimates from First Call were 0.39 (3/98) and 0.52 (3/99) before the announcement. Zack's indicates only 1 analyst. - Revenues down over the last year. Due to the absence of up front contract fees. EPS flat over last 4 quarters. ??? Without the Blockbuster announcement, where would this 33% increase in EPS have come from? Trend was not there in the financials. ??? How much revision will the Blockbuster announcement provide for 3/99 estimates? Has that revision already been priced in with the 17% jump? ??? After snagging Blockbuster, is there a huge amount of growth this company can do beyond that? Have they already caught their biggest fish? FWIW, the company trades at only 13.7 times 3/99 estimates, compared to a 33% projected growth. No numbers on long term growth. My first estimate puts a decent value on this company at $8.50, with upside potential due to earnings revisions for the BB deal. No position in RENT. jg

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