RealNetworks, Inc. (RNWK)
The Company is a creator of digital media services and software.
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Stock is trading at its Tangible Book value current. Balance sheet looks solid with tons of cash. While It has losing money (I don't remember the last time this company reported a possible EPS), it should be able to take on several more quarters of losses before it has to shut the door.
My biggest concern for Real Network is... it is losing its market share (which was small to begin with) to its competitors, and goes with it is the steady revenue stream. While it is spending 20% of its revenue on R&D, it has not come out with a product that Wow comsumers for a very long time. It needs to have a breakthrough in the media technology, or something that take the competitors by surprise - like Apple did with iPhone.
It needs to improve the bottomline before the stock could perform well again. This is going to be an uphill battle for the management turn things around. Network media market is saturated and maturing, so growth potential becomes limited. Shareholders are going to have to suffer for a long time.
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isn't doing much now but will shine in the second half
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I think that this company is a loser in the long term because they are terrible at everything they do. Well, maybe that's harsh, but they are certainly not a leader in anything that they do.
Their streaming media player has been outclassed by a website based on flash (Youtube). I don't see realmedia files anywhere anymore.
Their music store is not the cheapest, most portable, or the one offering the biggest selection. A face among the crowd with no edge except it's association with MTV. (Is that really so great? Does it beat association with iPods? An establised online retailer, or a music label?)
Their foray into Open Source was met with strong resistance from the targeted community.
If they keep up like this, I don't think that they will outperform the market.
Combined revenue from all of their business lines may keep them afloat, (diversifying faster than they can completely fail at one thing) but without a catalyst there's no possibility they will take off.
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http://www.pcworld.com/printable/article/id,125772/printable.html
old news, but still, beat only by america online. even windows me placed better! as far as im concerned realplayer is textbook adware.
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wow. Is this company still around?? how irrelevant can they be and yet still make money?
What is it? A dying media format owned by a dying company. It is merely a question of time before it becomes a distant memory.
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http://shadunskymethod.blogspot.com/2007/04/realnetworks-inc-rnwk.html
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Horrible products, no competitive advantage. There is a reason the current PE ratio is so low: they are not going anywhere.
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An awful company. Real Player is annoying and easily surpassed by all the other media players. Don't get caught in a value trap with this one.
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They invented one thing ten years ago and have followed it with crap. This company is treading water.
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BOND: So, Goldfinger! Do you expect this purveyor of a digital media standard in competition with Apple, the manufacturer of the iPod, and Microsoft, the manufacturer of Windows, to flourish and enjoy returns beating the S&P 500 over time?
GOLDFINGER: No, Mr. Bond! I expect them to die!

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