Here is an article from the insiderwire newsletter.
Keeping the faith and in for the long haul.
The Internet is not going away~
********************************************
Monthly Mover for the month beginning Tuesday, September 1, 1998
Macromedia, Inc. (NASDAQ: MACR)
MACR Snapshot:
Macromedia is a market leader in the multimedia tools industry. Macromedia develops and markets multimedia developments
tools, as well as client viewers, for the Macintosh and IBM platforms. Macromedia has made a significant contribution to the
development of Internet based content and delivery. Their Director and Flash products allow developers and content
producers to create dynamic, eye-catching presentations. To view the content, users must download and install the plugin,
but we're sure they won't be disappointed. These plugins, along with the developed content, transform the Internet from a
static, blinking image, bitmapped graphic world to a full-screen, vector graphiced, audio enhanced, dancing universe that gives
the viewer a fuller multimedia experience.
The technology integrated into their Flash product is steadily transforming the Internet. The Internet has benefitted greatly
from the addition of a vector graphic based format, and many product developers have recognized this and have integrated
the technology into their own products. Real Network's RealPlayer has integrated Flash technology into their most recent
versions of their RealPlayer product line. A new product out, developed by Zing (http://www.zing.com) primarily uses the
Flash technology to deliver intermittant ads, pictures, jokes, and insults to otherwise, would be world wide waiters. These
brief flashes are presented in full-screen and some contain small segments of audio. The flash technology of Macromedia
allows all of this to be delivered without quality loss, and at acceptable download speeds due to the small file sizes.
Macromedia's showcase site (http://www.shockrave.com) displays and exhibits the hottest sites developed using the
Macromedia product line. Online games (ie. Larry Loosejocks, Sega's Sonic) to music synthesizers are all created using
Macromedia's products, and can be viewed at their site. Macromedia's Director product is not only for the Internet, it is one
of the leading development tools for presentations and multimedia development. Many CD presentations and games are
developed using Director.
As the Internet develops and becomes more populated, more and more developers will recognize the power of
Macromedia's product line and begin using their tools. Flash will be a standard. Along with standard often comes a giant step
toward achieving significant market share. As standard as Microsoft is to the desktop, in our opinion, Macromedia could
become the same for Internet multimedia. For those looking for fundamentals, our research indicates that the Company is
happily sitting on over 94 million in cash as of the previous quarter and looking to add more. Macromedia has managed to
surprise the street the last three quarters and is expected to earn another $.07 a share in the coming quarter. In addition, it
appears analysts also expect the Company to grow 767% this year and another 51% next year. Not quite the company we
would attempt to short. Speaking of short, with over 28 million shares in the float, recent short interest reports less than a
million shares have been borrowed betting on Macromedia to turn further South than recent trading prices are reflecting. We
don't think so. What about you?
Disclaimer
The insiderwire is an independent financial forum committed to providing timely and factual profiles on selected companies.
Companies are chosen on the basis of various research methods and potential within their industry which, in the opinion of the
insiderwire, provide investors with possible potential while minimizing, wherever possible, the downside risk. All statements
and expressions are the opinions of the insiderwire and are not recommendations nor an offer or solicitation to buy or sell any
securities mentioned. All statements and expressions made by the insiderwire are derived from material supplied by the
company and may include outside sources and interviews conducted by the insiderwire. While we believe all sources of
information to be factual and reliable, we in no way represent or guarantee the accuracy thereof, nor the statements made
herein. We will not be held liable for any losses suffered by investors in reliance on information posted on this website (see
"Readers Should Perform Their Own Investigation" below).
The insiderwire has not been compensated for this month's "Monthly Mover". However, the insiderwire or the insiderwire's
affiliates and/or family may have positions in stock of the company reviewed in this publication and may increase or decrease
these positions at any time.
The insiderwire is not a registered investment advisor, registered broker, registered dealer, or financial planner. THE
INSIDERWIRE IS NOT A REGULATED ENTITY. |
