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


To: AnnaInVA who wrote (1499)12/6/1998 10:10:00 AM
From: Ashley800  Respond to of 27722
 
<<I don't think NetRadio itself will be the moneymaker, but
CDPoint will.>>

Ok, let's say CDPoint makes tons of money...that in turn helps NetRadio, but how is that going to help NAVR more than little?

Not sure if the this is 100% but this is my belief:
Stocks trade on earnings, the portion of Netradio that NAVR will own after the IPO will be listed as an asset on NAVR's books. If Netradio through CDPoint, or through advertising or some other means starts to earn $$, that will raise the asset value, but does nothing to the earnings of NAVR.

What are the earnings forecast for NAVR? Smith Barney told me 40¢ next year, then 25¢ the year after that w/ one analyst covering.

Basically what I'd like to know is why everyone thinks that if the spinoff company makes money, why does that affect the parent company stock price?

Are there any examples of IPO's whose stocks went up and the parent company followed? Mall is headed back to where it was before the UBID spinoff ($17), and USAI is where it was before the Ticketmaster spinoff.

Additionally, won't the shorts load up on NAVR (if it ever did get a rally) as a backdoor way of shorting Netradio?



To: AnnaInVA who wrote (1499)12/6/1998 1:39:00 PM
From: gammaray  Read Replies (1) | Respond to of 27722
 
Anna, it appears everybody is giving netradio 2 thumbs up. On the other hand navr seems to get no respect with 2 fingers up. that's because people are now looking for negatives and tend to forget psitives. I totally agree that Netradio/cdpoint etc will do great. This may be an over simplification and you touched on the first of two points.

1. Expenses for carrying netradio have affected navr bottom line. navr margins will increase as netradio pays their own way after ipo.

2. Netradio is going to sell a lot of music. Guess from what distributor that netradio cdpoint will buy their cd's?

So navr will gain sales as netradio grows and profit from those sales will be greater since netradio has left home.

Neil