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Technology Stocks : On2.com (ONT-AMEX) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (386)	3/15/2000 8:38:00 PM
From: vampire	Read Replies (2) \| Respond to of 553

What are your "fundamental" or long term thoughts about this company?

To: Zeev Hed who wrote (386)	3/15/2000 8:53:00 PM
From: KM	Respond to of 553

Zeev: I got in there too, was watching this stock. Any comments on this piece dated today? Date written: 03/15/2000 By: Lou Ambio On2.com (AMEX: ONT) is a leader in broadband content delivery over the Internet. Presently, the company is developing a network of Web channels exclusively for broadband-enabled consumers. The company has developed a type of video technology known as TrueMotion VP3. TrueMotion VP3 combines the classic elements of television with the interactivity of the Internet. Initially, On2.com will utilize this technology to deliver a wide range of high-quality entertainment and information to consumers in such popular areas as movies, games, music and travel. The company will continue to develop their technology to expand their web channels In the coming years and ONT also plans to will expand their business-to-business broadband offerings to fully exploit the potential of their proprietary TrueMotion VP3(TM) technology, eventually providing business-to-business solutions that will create the most exciting entertainment on the Internet. The problem is that everything associated with On2.com is incredibly forward looking. The Company's business model is focused exclusively on the broadband market, which is expected to reach nearly 28 million U.S. households by the end of 2003, but is minimal at this point. With a very small market for their web channels ONT was only able to generate revenues for the fourth quarter of $154,569 compared to $21,001 for the same period in 1998, while net losses grew immensely from $981,444, or $0.06 per share to $5,198,779, or $0.22 per share. IN fact, revenues for all of 1999 were a mere $178,112. The company's CEO continues to explain to investors that it is all in the development process, by stating, "We are confident that the assets we are building -- an innovative broadband-specific network delivering full-motion, full-screen, television-quality video over the Internet and the technology to deliver it -- will become progressively more valuable as demand for broadband technology and high-quality entertainment content continues to grow." However, investors are growing tired of it, as losses only continue to mount. There is a possibility that the sell-off is posting an opportunity for investors as ONT is sticking to their guns and continuing to develop their business. The company acquired MetaVisual Creations and modified and combined their visual compression technology with their own to accelerate the development of the On2Network. More recently, On2 acquired QuickBand Networks, a Los Angeles-based aggregator and retail distributor of broadband entertainment Content, which will expand ONT's technical production capabilities to more quickly enable third-party developers and content providers to utilize On2's technology. With what appears to be a strong business model in place investors are left to decide what will turn around the stock price, and unfortunately with only greater losses in the foreseeable future a buyout may be the only event that could send them higher. However, if you are looking for a long-term play, and can deal with some down days, On2 could turn out to be a big winner in the "new economy." Questions/comments for Lou, or to share your own thoughts/ideas, post on our On2's MESSAGE BOARD