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

To: LindyBill who wrote (2005)	5/17/1999 8:01:00 AM
From: NY Stew	Read Replies (3) \| Respond to of 54805

LindyBill, What is the best guess,(not your hope) on the Lawsuits? TV Guide is a powerhouse to go against. Let's face it, a lot of this may end up as politics. My best guess is that the overall equation favors Gemstar. The failed JV and hostile takeover are better indicators in my view than all the litigation spin combined. United Video offered Gemstar 49% of ad revs with a per unit royalty fee in the JV effort. The sticking point came in the 'divorce clause' where United Video wanted IPR to certain technology if the JV should breakup down the road. Gemstar would not surrender such rights to its IP. Assuming they fend off the lawsuits for a couple of years, and continue to grow, what are you estimating next's years earnings at? Gemstar has been sued by United Video and SFA. They have charges pending against TVGIA, TCI, GIC (say T), SFA and Pioneer. I really have not considered F2000 earnings much beyond being confident that they will exceed current estimates. Distribution is key now as the base needs to reach the "several" million threshold so the revenues will serve as 'proof of concept' to Gemstar's strategy. It is my opinion that the company should be valued on earnings 3-4 years out and if the market in its wisdom chooses to do so we may see significant valuation increases ahead. This company is in an emerging Gorilla industry and I am pleased to see that it has been given due consideration here. Regards Stew