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To: Bruce Brown who wrote (24219)	5/5/2000 5:05:00 AM
From: Bruce Brown	Respond to of 54805

RE: Gemstar... This arrived in my mailbox this morning from Robertson Stephens (along with about 15 I LOVE YOU messages which my Mac spit out in the trash): ===== GEMSTAR: PROFITABLE, PROVEN, PATENT-PROTECTED, IN OUR VIEW Gemstar is down 60% from its recent high of $107, we believe partially due to confusion regarding the pending TV Guide (TVGIA $30-1/16) merger, which we expect to close in late May or early June, and a weak stock market. Gemstar shares traded at a 52-week high of $107-7/16 and a 52-week low of $24-5/8, while the S&P 500 traded at 52-week high of 1552.87 and a 52-week low of 1233.66. We are slightly cautious about fiscal Q4 results, given the potential for confusion regarding accounting classification of revenue, though we are quite confident of underlying business trends. We believe there is the potential for significant good news ahead, including the closing of the merger, the launch of AOL TV and the introduction of estimates for the combined GMST/TVGIA. In addition, we believe the emerging eBook business could be very large. We have created a preliminary framework for valuing the combined entity, reflecting a range of business possibilities that depends largely on growth in ad and eBook revenue. Based on our calculations, this results in a wide range for the stock from $33 to $133, signaling our sense of its upside potential. Even in this difficult environment for growth stocks, we find the risk/reward profile of this emerging media company compelling. ===== BB