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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: pala who wrote (11870)	12/3/1999 3:13:00 PM
From: Eric Jacobson	Read Replies (3) \| Respond to of 54805

pala, I'm not sure what you mean. The Stephens report is from June 1999, which was six months ago. I'm not sure this qualifies as "very dated." Yes, there have been two significant events which have occurred since then - phase one of the GIC litigation was resolved in GMST's favor, and the TVGIA litigation was resolved through a buyout. Although the TVGIA agreement was somewhat of a surprise, the Stephens report assumed both of these issues would be resolved in GMST's favor. I'll agree there was initially and perhaps still is a mixed reaction to the TVGIA agreement - on the one hand it comes with some debt and the print version of TV Guide, however, it also virtually eliminates competition on the IPG market and does away with the uncertainty and costs of further litigation. Judging by the market reaction, it appears most agree this is a net positive. ...when we don't even know it's business plan Anybody who's read the Stephens report, the company's 10K, and the astute observations from G+K threadsters like NY Stew is pretty familiar with GMST's business plan. The only major outstanding issue with their business plan is understanding exactly will happen with the print version of TV Guide. Gemstars position is very like Rambus a year ago... Rambus has been discussed here and many concluded they were dependent upon INTC. GMST's position is very different. ...all possible good news is priced into Gemstar Many people were saying that about GMST 35 points ago. Many people thought GMST was unlikely to double when it was at 75, and yet we're more than half way there. BTW, according to the company's 10K, they had about $150,000 in advertising revenue in FY99. According to a recent The Street.com article, the company had $400k in advertising revenue in 1Q 2000 alone. While this is still a small amount of revenue - about 1% of the company's quarterly revenue - it represents a significant jump in ad revenues from quarter-to-quarter with minimal market penetration or advertisers.