Hey, Check out this article from CBS Marketwatch.The last time they did a story on EGGS and compared it to an IPO that was trading at 19.
NAVR in due time should rocket to at least $15.I'm not the hypester
type guy ,but this looks like another EGGS.
SAN FRANCISCO (CBS.MW) -- In the wake of Broadcast.com's explosive offering of new shares, investors can't be faulted if they dig for other gold mines on the World Wide Web. (And neither can stock market columnists, right?)
One audio Web site with a spooky similarity to Broadcast.com (BCST), whose shares almost quadrupled in their first day of trading, is NetRadio Network at netradio.net.
NetRadio has 150 audio channels, mostly music. Broadcast.com has a wider variety of audio content, including Major League Baseball and U.S. college football.
The almost 3-year-old NetRadio Web site says it has registered users from 90 countries. Its parent company, Minneapolis, Minn.'s Navarre Corp., distributes CD-ROMs, music and software.
NetRadio claims it is the largest broadcaster of Internet-only audio content. NetRadio pulls in 3 million audio visits a month, the company says. Navarre (NAVR) turned a tiny profit in its recent quarter. Broadcast.com might be years away from turning a profit. (See the original Broadcast.com story.)
The one big difference in these two companies: Broadcast.com, its shares soaring to more than 60 from an initial offering of 18, became a billion-dollar company overnight. Broadcast.com has solid relationships with sports and news organizations.
Navarre has shares worth a mere $50 million on Nasdaq, where its stock was selling for a lonely 6 1/2 Monday. The company raised $20 million in a private placement two months ago.
Another difference: unlike Broadcast.com, Navarre sells computer software direct to consumers at cdpoint.com and other Web sites.
And Navarre fancies itself a music producer. The company owns a record label called Celestial Breakaway. Navarre's first Celestial recording is "G Funk Classics."
Navarre earned $27,000 for 1999's first fiscal quarter ended June 30 compared to a loss of $1,060,000 for the same period a year ago. Net sales of $53.2 million were 33.7 percent better than the year-ago span.
Here's the nugget of gold in all this, maybe. Filings show that one husband-wife investing team, Alfred and Annie Teo of New Jersey, own at least 5 percent of Navarre's stock. Alfred sits on Navarre's board of directors.
The significance: the two have a track record. Alfred and Annie bought more than 5 percent of the stock of struggling Musicland (MLG) about 18 months ago. Back then, Musicland shares sold for less than 1 1/2. Now the stock sells for more than 15. The two bought the shares on the open market.
Musicland, which operates about 1,400 stores under the names On Cue, Media Play, Sam Goody and Musicland, is based in Minnesota, like Navarre.
Alfred Teo made his fortune in the plastics business. To some investors, his interest in music stores and the World Wide Web might be no more bizarre than the frenetic Internet buying of Zapata Corp. A Texas fish oil maker, Zapata (ZAP) shares have soared this summer after the company started buying World Wide Web sites in a gambit to become a distributor of Internet content.
Go figure.
TV show: See Thom Calandra on KPIX-TV Channel 5 each day from 5:30 a.m. to 7:45 a.m. PT in San Francisco.Your eye on the market. Please scan our CBS stock lists, including our Channel 5 MarketWatch stock list, which is crammed with Silicon Valley companies.
Thom Calandra is CBS MarketWatch's editor-in-chief.
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