InterVu Stk Up For 2nd Straight Day
Following Research Note
Dow Jones Newswires
NEW YORK -- InterVu Inc. (ITVU) shares rose for the second straight
day Thursday after one of the two analysts who follow the company issued
a favorable research report.
Glenn Powers, analyst at Cruttenden Roth Inc., issued a report stating that
the company's relationships with the NBC network and Microsoft Corp.
(MSFT) "are starting to pay off."
Shares of the full-service video solutions distributor were up 15.7% to 13
13/16 Thursday on volume of 775,900 shares, more than 10 times the
average daily volume of 57,200. The stock rose 30.8% Wednesday.
Market makers in the stock couldn't say whether the stock increase was
directly related to the report.
The company said it didn't know what has been driving the stock.
InterVu, which promotes itself as a kind of one-stop shop for customers to
quickly distribute video images over the Internet, announced last week at a
stock conference that it will provide a new service to Microsoft's VXtreme
customer base, an expansion of an existing agreement.
"InterVu's relationship with Microsoft appears to be a very good source of
referrals," the report said. "InterVu has noticed that Microsoft has been
directing some of its customers to InterVu as the primary outsourcing
company for Internet video."
Powers also said NBC, a 10% owner of InterVu, is expected to start
delivering "a significant amount" of video through InterVu fairly shortly. The
company already has NBC Multimedia Inc. as a customer.
"NBC should increase the content delivered through InterVu, perhaps in
the next few months," the report said. "Recent discussions we've had with
NBC management show strong enthusiasm for the project."
Also, investors should look for another "major network" deal soon, the
report said.
"We think that an announcement of another major content deal could
move the stock higher, and convince investors that the solution is
compelling for networks other than early-backer NBC," the report said.
Cruttenden reiterated its strong buy rating of the Solana Beach, Calif.,
company, but cautioned that the company is an early stage firm with
"insignificant" revenues. Cruttenden is forecasting substantial losses at
InterVu through 1999, and projects InterVu's first-quarter revenue will be
$80,000, compared with $10,000 a year earlier.
Cruttenden's two-year price target for InterVu is 35. Powers said the
company is hesitant to give a 12-month target, but indicated the stock
could reach the low-20s this year. |
