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Technology Stocks : Audio and Radio on the Internet- NAVR -- Ignore unavailable to you. Want to Upgrade?

To: country bob who wrote (20313)	7/15/1999 8:55:00 PM
From: Matt Davis	Read Replies (2) \| Respond to of 27722

One positive post from Yahoo Board: To: Lying shorts, the facts reveal by: OrleansCreole22 (32/F/New Orleans) 61206 of 61207 A history very different from the ugly picture often painted on this board. Navarre came public in 1993 at a split-adjusted $3 and traded at $5 prior to its 1996 acquisition of NetRadio. That Spring, Navarre shot up as high as $18. The business was consistently profitable until a slowdown in music sales and losses from the NetRadio operation sent the company into a year-long skid of unprofitability. But like all solid companies, NAVR returned to profitability in its fiscal third quarter ended Dec. 1997, thanks to continued growth in its computer software business and a rebound in its music business. Signing new labels distinguishes NAVR from other minor players in the music industry because, NAVR not only distributes prerecorded music, software and CD-ROMs to a retailers such as Tower Records and the Good Guys, but it also works with a number of independent music labels, so the NetRadio webcasting venture offers a way to give artists on these independent labels greater exposure, and naturally the potential for online sales. So far, NetRadio has been an expensive tool for promotion, resulting in a $1.5 million drag on pre-tax net income for the first nine months of FY97. Even so, the company managed to break back into profitability in Q3 '97, earning 8 cents per share. Sales last year topped $200 million, so it's not as if the company is all hype and no action. Navarre's core business is music and software distribution, and the Internet part merely plays a supporting role. NAVR is unlike the purely internet, illiquid, microcap, equities with often obsure connections to online commerce which have inspired speculative frenzies, such as K-TEL (Nasdaq:KTEL - news) which shot up more than 500% after announcing plans to take its music retailing business online, Platinum Entertainment (Nasdaq:PTET - news), Image Entertainment (Nasdaq:DISK - news) , 7th Level (Nasdaq:SEVL - news) , and Market Guide (Nasdaq:MARG - news). It's important to distinguish between the mania behind the aformentioned stocks and the rally in top-tier online players. While there is plenty of debate over valuations for these companies as well, most of them have quickly growing revenues and the stocks are very liquid. In contrast, the micro-mania is exploiting stocks with market capitalizations of less than $100 million, float (shares available for trading) of just a few million shares and pre-frenzy daily volume of just a few thousand shares in most cases. These tiny stocks are easily influenced by speculators. Indeed, NAVR's return to profitability and recent distribution deals with several record labels offers new hope for the future. Internet stocks are inherently volitile according to most analists. The appeal of NAVR, however, is that it is not an internet stock. You are investing in a real company with tangible assets and almost no debt, and at the same time you are investing in a company whose holdings in a hot internet player, that is NETRADIO. The shorts can bash NAVR day and night but you can't change the stock's history of being a sound and profitable company.