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To: Dale Baker who wrote (4439)	4/17/1999 8:22:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

Business Week on RNWK. With yesterday's higher low, I think RNWK may have stabilized here for now. A split announcement should be the next trigger for a major rise. Can RealNetworks Keep Its Starring Role? Despite a stumble on Apr. 14, its stock is soaring, and many analysts think the Web multimedia company is just beginning to click Now that RealNetworks (RNWK) has become one of the darlings of the Internet world, it's worth remembering that only last summer it looked as though the tiny company was about to be slayed by Goliath. Founder and Chairman Rob Glaser had dared to testify against mighty Microsoft (MSFT) before a Senate committee, claiming Microsoft's competing multimedia player tampered with the functioning of RealNetwork's RealPlayer. By Sept. 1, RealNetworks was trading as low as 15 1/4. And three months later, Microsoft announced that it was selling its minority stake in RealNetworks. Put in that context, the stock's 17% slide from $229 to 189 1/2 on Apr. 14 isn't much to complain about. In the past eight months, investors' concerns that Microsoft would obliterate RealNetworks have receded as they came to realize just how huge the market for audio and video on the Net really is. RealNetworks began 1999 trading at around $38, and by the end of March had more than tripled, to $122. Then it really took off. Investors pushed it past $200 on Apr. 7, on excitement over Yahoo!'s (YHOO) purchase of a RealNetwork customer, Broadcast.com (BCST). They were guessing that the deal will fuel demand for streaming media (audio or video that's delivered across the Net in real time rather than having to be downloaded to be played) and eventually prompt a bigger player, such as America Online (AOL), to buy RealNetworks. Glaser has repeatedly stated his intention to keep his company independent, and some analysts believe he would be foolish to sell out at this early stage. NO CONCERN. With barely a pause, RealNetwork's shares shot up to an intraday high of $263 3/4 on Apr. 13 (before closing at $229) thanks to two new deals that could give it a leading role in developing the market for downloading music over the Internet. Profit-taking is likely the culprit for the stock's Apr. 14 slip, which didn't concern analysts who have grown used to large swings. "Of course the valuation is very high," says Alexander C. Cheung, portfolio manager of Monument Internet Fund, which has RealNetworks as a core holding. "Given the run of the past few months, a little bit of a correction is not out of the question. I'm not worried about three- to six-month price swings," he adds. "I'm looking at the next three to five years." -------------------------------------------------------------------------------- RealNetworks "is the "ubiquitous, de facto standard audio/video player on the desktop" -------------------------------------------------------------------------------- Cheung, like other RealNetworks fans, believes the company will play a leading role in bringing audio and video to the Net now that broadband access is becoming more common. Currently, only a small fraction of Web sites use multimedia. But eventually it will be on nearly every site, analysts say. "Audio will become even more important than it is now as a competitive tool to differentiate one site from another as the rollout of broadband continues," says Alan Harris, co-portfolio manager of the Munder NetNet fund. Analysts estimate that RealNetworks has an 85% market share in streaming media players. It is the "ubiquitous, de facto standard audio/video player on the desktop," says Rob Martin, an analyst with Friedman, Billings, Ramsey & Co. Its software has an installed base of 58 million registered users, and more than 175,000 people download its free RealPlayer off the Internet everyday. SECURE MUSIC SALES. That's just the streaming media side. On Apr. 12 and 13, RealNetworks announced deals for technology that make it possible to download and store music files -- a market Lehman Brothers estmates at $30 billion. First, it announced a partnership with IBM to develop software that will allow the secure sale of music by artists backed by major recording labels. The second announcement, a $75 million stock deal to acquire Xing Technology, a leading developer of popular MP3 software, gives RealNetworks a piece of the market among musicians who distribute their music over the Net without copyright protection. RealNetworks, which had sales of only $65 million and a loss of $16 million in 1998, is in the early stages of turning its huge user base and important brand name into revenues, say analysts. It currently gets income from licensing agreements for its software, from the sale of servers that produce multimedia content, from upgrades from the free RealPlayer software to RealPlayer Plus, and from other fees. Analysts expect it to find new revenue streams that will feed off its huge installed base. For instance, they expect it to expand its audio and video Web portal, sell broadcast-hosting services to companies, and reap transaction fees from the sale of music. -------------------------------------------------------------------------------- The deal with IBM prompted one analyst to raise his price target to $300 a share -------------------------------------------------------------------------------- "At its core, RealNetworks hasn't even begun to scratch the surface of the potential market for streaming media technology," says Jae Kim, an analyst with media research firm Paul Kagan Associates. After the IBM announcement, Martin raised his price target to $300 from $200 a share. "Real's ability to generate advertising and commerce revenue represents a greater opportunity than our forecasts suggest," he wrote on Apr. 12. So, what happened to the ogre of Redmond? "Microsoft is always going to be a threat," says Michael Wallace, an analyst with Warburg Dillon Read, who seems a bit bored with the question. Microsoft has been gaining market share, says Martin, although it isn't taking share away from RealPlayer, since people are using both players. Analysts seem O.K. with the idea that RealNetworks could lose some share to Microsoft as well as to other competitors, such as AT&T's (T) a2b music and Liquid Audio. "Ultimately, this market is far too big, the potential is far too great, for any one company, no matter who it is, to win entirely," says Kim. REAL CHALLENGE. Not all investors agree. RealNetworks isn't a holding in the Munder NetNet fund because of the competitive threat from Microsoft, says Harris. But he concedes: "The growth in audio over the Internet could outweigh the Microsoft risk." John Robb, a principal at Gomez Advisers, says the threat, more than Microsoft, is that RealNetworks won't be able to realize all the potential it has now. "I think they are challenged more by themselves, by what they can do as an organization, than by an outside competitor." Of course, the other big risk for RealNetworks' shareholders, as well as for holders of other Internet leaders, is that the volatile stocks could one day slide as steeply as they've run up if market conditions change. RealNetworks will report first-quarter results on Apr. 20 and is expected to show a loss of about three cents a share. Even if the company exceeds estimates, Internet stocks have a tendency to decline once earnings are out. RealNetworks may be a risky holding for the next few months. But if it can maintain its key role in building next-generation broadband sites, its next three to five years could be a really big show. Amey Stone is an associate editor of Business Week Online businessweek.com

To: Dale Baker who wrote (4439)	4/17/1999 10:47:00 AM
From: EyeDrMike	Respond to of 118717

I also sold 1/2 my position at 29 yesterday, to limit exposure, but believe this one has the potential to see higher valuations. <<But there was a lot of that going on. At least some nasty chart gaps were filled, like MSGI.>> Many charts had back and fill going on. Nothing goes straight up, and this correction is very healthy going forward. This internet age is in its infancy, and nothing better then getting in on the ground floor, especially on these big dips. Pulled this off another thread, nice list: INTERNET "THE GUTS" Broadcast (Nasdaq:BCST), CNET (Nasdaq:CNET), Cisco Systems (Nasdaq:CSCO), Harmonic Light (Nasdaq:HLIT), Intel (Nasdaq:INTC), Globix (Nasdaq:GBIX), Lucent (NYSE:LU), Microsoft (Nasdaq:MSFT), Northern Telecom (NYSE:NT), Novell (Nasdaq:NOVL), Macromedia (Nasdaq:MACR), Realnetworks (Nasdaq:RNWK), Sun Microsystems (Nasdaq:SUNW). My addition: PCNTF - PACIFIC INTERNET PORTALS AOL (NYSE:AOL), Go2Net (Nasdaq:GNET), Lycos (Nasdaq:LCOS), Infoseek Corp (Nasdaq:SEEK), Sportsline, USA (Nasdaq:SPLN), Broadcast.com (Nasdaq:BCST), TheGlobe.com (Nasdaq:TGLO), Excite (Nasdaq:XCIT), Yahoo (Nasdaq:YHOO). WEB COMMUNITIES GeoCities (Nasdaq:GCTY), Ivillage (Nasdaq:IVIL), XOOM.com (Nasdaq:XMCM) NEWS AGGREGATORS Infospace (Nasdaq:INSP), Newsedge (Nasdaq:NEWZ) E-MALLS Cybershop (Nasdaq:CYSP), IMALL (Nasdaq:IMAL) RETAIL-INTERNET Auto by Tel (Nasdaq:ABTL), Audio Highway (Nasdaq:AHWY), Amazon (Nasdaq:AMZN), AutoWeb (Nasdaq:AWEB), Beyond.com (Nasdaq:BYND), CD-Now (Nasdaq:CDNW), Cyberian Outpost (Nasdaq:COOL), Computer Literacy (Nasdaq:CMPL), Cheap Tickets (Nasdaq:CTIX), Digital River (Nasdaq:DRIV), Egghead.com (Nasdaq:EGGS), Getty Images (Nasdaq:GETY), Intimate Brands (NYSE:IBI), Audio Book Club (NYSE:KLB), Navarre (Nasdaq:NAVR), N2K (Nasdaq:NYKI), Onsale (Nasdaq:ONSL), Preview Travel (Nasdaq:PTVL), Peapod (Nasdaq:PPOD), Ticketmaster B (Nasdaq:TMCS). AUCTIONS Sotheby's Holdings (NYSE:BID), EBay (Nasdaq:EBAY), UBID (Nasdasq:UBID). BUSINESS TO BUSINESS Cybercash (Nasdaq:CYCH), Earthweb (Nasdaq:EWBX), Rowe (Nasdaq:ROWE), VerticalNet (Nasdaq:VERT). FINANCIAL SERVICES Ameritrade (Nasdaq:AMTD), CMGI Inc. (Nasdaq:CMGI), E-Trade (Nasdaq:EGRP), Market Guide (Nasdaq:MARG), Multex (Nasdaq:MLTX), Marketwatch.com (Nasdaq:MKTW), Netbank Inc. (Nasdaq:NTBK), Secur Dynamics (Nasdaq:SDTI), Winfield Capital (Nasdaq:WCAP). ADVERTISING RELATED Double-Click (Nasdaq:DCLK), Netgravity (Nasdaq:NETG), 24/7 Media (Nasdaq:TFSM). my addition: MMPT - MODEM MEDIA.POPPE TYSON COMPUTER & PERIPHERALS Apple Computer (Nasdaq:AAPL), Compaq (NYSE:CPQ), DELL (Nasdaq:DELL), Gateway (NYSE:GTW), Micron Electronics (Nasdaq:MUEI), Data-Race (Nasdaq:RACE). WIRELESS INTERNET ASM Lithography Holding (Nasdaq:ASML), Broadcom (Nasdaq:BCRM), PMC-Sierra (Nasdaq:PMCS), PRI Automation (Nasdaq:PRIA), RF Microdevices (Nasdaq:RFMD), Uniphase (Nasdaq:UNPH). MISC. INTERNET @Home (Nasdaq:ATHM), CD Radio (Nasdaq:CDRD), DataRace (Nasdaq: RACE), Healtheon (Nasdaq:HLTH), Network Solutions (Nasdaq:NSOL), UOL Publishing (Nasdaq:UOLP), Ziff-Davis (NYSE:ZD).

To: Dale Baker who wrote (4439)	4/17/1999 10:49:00 AM
From: EyeDrMike	Read Replies (1) \| Respond to of 118717

about PCNTF: Pacific Internet Pte Ltd Overview \| News \| Officers & Employees \| Location & Subsidiaries \| Products/Operations \| Competitors & Industry \| Financials \| Search OVERVIEW -------------------------------------------------------------------------------- Available only for Business Licensees. (Copyright limitations.) Requires Adobe Acrobat Reader. The only thing Pacific Internet is fishing for in the Asia/Pacific region is gold. Owner of Pacific Internet Corporation (PIC), the leading Internet service provider (ISP) on the island city-state of Singapore, Pacific Internet also trolls for clients in Hong Kong and the Philippines. The company owns interests in other ISPs -- 50.1% of Hong Kong Supernet and 40% of Pacific Internet Philippines (PIP) -- and a 15% stake in 1-Net Singapore (owner of Singapore's high-speed nationwide network). Its services include dial-up and dedicated access, e-mail, personal Web sites, news links, and remote account access. Singapore subscribers can also receive brief e-mail messages on pagers and mobile phones; businesses are offered Internet consulting services, Web site hosting and co-location, virtual private networks (using the Internet as a dedicated network), and a spot in an online mall. Pacific Internet has more than 200,000 subscribers. About 60% of its shares are owned by SembVentures, a unit of Sembawang Corporation, and 20% by Singapore International Media's SIM Ventures. Sembawang and SIM are controlled by Temasek Holdings, Singapore's government-owned holding company. Pacific Internet was incorporated in 1995 as Sembawang Media. Through a joint venture with ST Computer Systems & Services and SIM Ventures, Sembawang Media established PIC. The next year, Sembawang Media increased its ownership of PIC from 50% to 75% and bought about 50% of Sembawang PacMann, Hong Kong Supernet's parent. In 1997 the firm began to offer Internet services in the Philippines. A year later the Singapore government lifted its restrictions on the number of Internet competitors allowed in the region. After transferring all of its Internet-related interests (except PIC) to shareholder SembVentures, Sembawang Media changed its name to Pacific Internet. Pacific Internet then bought back 50% of Hong Kong Supernet and 40% of Primeworld Digital Systems, the operator of PIP. The company also signed an agreement with Singapore firm Thakral Brothers to offer Internet services in India. Pacific Internet went public in 1999. NEWS & COMMENTARY -------------------------------------------------------------------------------- Hoover's Selected Stories Internet Services Provider Revamps (South China Morning Post, March 15, 1999) Supernet Stake For Sale (South China Morning Post, February 15, 1999) Company Press Releases Current News for Pacific Internet Archived News about Pacific Internet More News OFFICERS & EMPLOYEES -------------------------------------------------------------------------------- Executive Chairman: Chan Wing Leong, age 42 CEO: Nicholas M. T. Lee, age 42 SVP Special Projects: Quek Keng Ngak, age 43 Deputy General Manager: Lim Hock Koon, age 37 Director Finance: Chiam Heng Huat, age 33 Director Sales and Marketing: Debbie S. H. Woon, age 39 Director Product Management: Chiew Min Phay, age 41 General Manager Mediaworks: Mark Anthony Hobson, age 34 General Manager Hong Kon Supernet: Eric W. L. Kong, age 47 Deputy Director Engineering: Elaine P. M. Lai, age 39 Deputy Director Human Resources and Administration: Doreen P. H. Loh, age 35 Deputy Director Customer Service: Neo Tong, age 32 Auditors: Ernst & Young LLP 1997 Employees: 439 (Company Job Openings) LOCATION & SUBSIDIARIES -------------------------------------------------------------------------------- Headquarters: 89 Science Park Dr., #04/09-12, The Rutherford, Singapore Science Park, 118261 Singapore Phone: +65-872-0322 Web Site: pacific.net.sg Web sites for subsidiaries/divisions/affiliates: Hong Kong Supernet Pacific Internet has offices in Singapore, Hong Kong, and the Philippines. PRODUCTS/OPERATIONS -------------------------------------------------------------------------------- 1997 Sales % of total Dial-up access 65 Leased line access 14 Value-added services 3 Other 18 Total 100 Products and Services: Access Services Basic dial-up Business dial-up Connectivity CyberGuard Family account High-speed ADSL (asymmetric digital subscriber line) Leased line Network ISDN (integrated services digital network) Personal ISDN Premier access Small office Student dial-up Internet Software IE 4 Netscape 4 WinMass Value-Added Services E-mail paging EmailSMS (allows reading of e-mail on handphone) PersonaFax (receives faxes in e-mail) Roaming (local Internet access worldwide) WebFax (sends faxes in e-mail) Web Solutions Server co-location System integration Web advertising Web design Web hosting Patents COMPETITORS & INDUSTRY INFORMATION -------------------------------------------------------------------------------- Hong Kong Star Internet Hong Kong Telecom IPhil Communications Mosaic Communications Philippine Long Distance PSINet Singapore Press Singapore Technologies Engineering Singapore Telecommunications Sky Internet Links go to Hoover's Company Profiles, or to Hoover's Company Capsules if no Profile is available. Hoover's Snapshot: Internet/Online Industry FINANCIALS -------------------------------------------------------------------------------- Nasdaq: PCNTF Fiscal year-end: December 1997 Revenue ($ mil.): 34.3 1-Yr. Revenue Growth: 67.1% 1997 Net Income ($ mil.): (6.8) Investor Resources \| Current Quote \| Chart \| Order Annual Rep