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Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (662)	10/29/1999 4:15:00 PM
From: jay silberman	Respond to of 6516

multexinvestor.com Some fairly nice comments; e.g., "Gemstar is a rocket ship. Gemstar is re-defining how people are going to interact with their televisions, which is a 7 hour per day habit in a lot of households. Now that the company has bought TV Guide, the game is over. There is only one winner. The potential for Gemstar to sell advertising, and to collect transaction fees for interactive television e-commerce is off the charts."

To: DownSouth who wrote (662)	11/3/1999 11:05:00 AM
From: FLSTF97	Respond to of 6516

DownSouth Sorry for the delayed answer, I've been on the road. I do not suggest that the Guides results are either over or understated. I think they are correct. My point is that in the last year to 18 months they made acquisitions which resulted in adding significant goodwill to the books. This in turn creates significant depreciation and amortization that I always view as a real cost. If the resulting earnings of the combined entity do not offset the increased D&A expense I tend to think they overpaid. I am especially concerned since most of this is for what I consider to be a decreasing market for them. The recently announced cooperation of trying to switch the C band subscribers to the newer equipment, may help prolong the revenue stream on at least this purchase. Bottom line is that in this specific case one needs to look beyond EBITDA. Fatboy