PTET, Platinum Entertainment, is doing a deal with Liquid Audio for CDs.
A few weeks back they signed a big deal with Liquid Audio to allow customers to download from their web site almost any song out there and make a customized CD. Or the person can let Platinum Entertainment make the CD and have it sent to them. It goes online late Sept98. They selected Digital River because DR has the technology to do music downloads with copyright protection, something music execs really like for protecting their moneys. They will have over 500,00 songs to choose from. In my opinion, this will be the optimum way for both consumers and record companies to get their music onto CDs. Very little cost for record companies, no wherehouses, etc. No inventory. You get the picture.
With the start of operation rapidly approaching, and the recent spike then backtracking of PTET from 6 to 13 and back to ~$8 it may be the time to pick up PTET for a song. The float is only 1mil out of a total of around 5mil. Couple of weeks ago PTET was all the rage on CNBC for a day when it did 12mil shares traded during that spike, all on 1mil float. Also, right after that the shorts came in and increased their positions near the $12 prices. With such a low float and Sept98 coming up fast I will be looking for an entry point any day now. Seems to have support in the high 7s / low 8s right now but I did notice a few days ago it spiked to 9 real quick on a low volume. Granted it fell right back down but that was a signal to me that there is a possible short squeeze ready to go here on PTET.
Go check out the Platinum web site,http://www.platinument.com, they have a sample of how everything will work come Sept/Oct98 and there are PRs about the connection with Liquid Audio.
BTW, Liquid Audio is backed by Hummer Winblad Venture Partners for financing and startup. I believe Liquid Audio will also do an IPO but not sure exactly when. If you know anything about Ann Winblad, she's an ex Microsofty millionaire ( she once dated Gates if that means anything )software guru. She puts her companies money in the right places for big gains. Check out their web site also, humwin.com, and see what I mean. There are some other companies listed also that will do IPOs in the future. They did the NetGravity (NETG) deal. And are doing many more.
I've read articles recently on SI about Liquid Audio being the download capability of choice by the record industry as it is the only one out there of a few others that can't be pirated by the home or professional user. Thus there is no fear of cloning of CDs.
All in all, I think noe is the strategis time to get into PTET, before Sept rolls around and all the hype begins. As always, do your own DD.
DessertRat out. |
