SPECIAL TARGET PROFILE
EMUS EMusic.com Network
Profiled 01-02-01 at $0.28
30 days Target of $0.75
90 days target of $1.25
180 days target of $2.75
After receiving increasing members mail on EMUS as an Under-valued High Potential Speculative Internet Play, Momentum Traders Network is profiling EMusic.com and its EMusic Network : IUMA | ROLLINGSTONE.COM | DOWNBEAT.COM as a Special Under-Value Alert...
Momentum Network believes that the EMusic Network is worth at least 1/2 of its current Book Value of $5.24 and that the stock price will begin to more accurately reflect this value in early 2001 as EMusics competition is pared down by current litigation and the demand for their content grows at a brisk pace as internet connection speeds continue to improve...
Speculative Potential includes possible legal settlements in favor of not only EMusic's patent infringements, but also increasing interest in EMusic's Acoustic FingerPrint Software as a foundation for an industry standard. Content and License agrrements are also source of speculation as Yahoo is often mentioned in Online Rumor Mills as potential distribution alliance partner for EMusic.
RollingStone.com One of the Web's Most visited Entertainment Sites.
EMUS
52-Week Low on 29-Dec-2000 $0.25
Recent Price $0.281
52-Week High on 14-Jan-2000 $11.00
Book Value (mrq) $5.24
Strategic Partners
Adaptec, AltaVista, America Online, Creative Labs, Crunch Music Ltd., Hewlett-Packard Co., Launch.com, Listen.com, MusicMatch, MyPlay.com, peermusic, RealNetworks, S3 Inc./Diamond Multimedia Systems, Samsung Electronics, Sensory Sciences, WiredPlanet, Yahoo!, ZDNet.
Risk Level High
Reward Level Very High
50 Day Moving Average $0.69
200 Day Moving Average $2.10
Institutional Ownership 16.90%
Insiders 36.03%
We anticipate EMUS to release another Record Revenue Report in Mid-January... Here are the Highlights of last quarters results.
-- Revenues of $4.6 million, a 23-percent increase over the preceding quarter;
-- An increase in music revenues to $1.5 million, a 195-percent increase from the preceding quarter;
-- A $3.1-million subscription partnership with Hewlett-Packard (revenue to be recognized over the next two quarters);
-- Cash-based operating costs that decreased by more than $5 million from prior quarter;
-- Cash reserves of $22.9 million at September 30, 2000;
-- Sold three-millionth downloadable song;
-- The unveiling of the Web's first subscription program for legitimate music downloads; and
-- Increased breadth and depth of artists, with more than 130,000 songs available from more than 600 independent labels.
"This quarter, we not only strengthened our business by increasing revenue and decreasing operating costs, but we added new opportunities for our customers to discover and experience music, including an inexpensive subscription program and quality recognized artists," said Gene Hoffman, EMusic's president and CEO. "And, we're continuing to fulfill our promise of legitimate downloadable music sales by compensating the artists and labels."
12/25/00---EMUS alerted as Members Mail Leader
12/28/00---EMUS technical indication of accumulation
12/29/00---EMUS volume 4x normal
01/02/01--EMUS featured as Company Spotlight at $0.28 cents.
MEMBERS:
If you believe any of the hype surrounding Internet music companies, the foundations of the current recording industry are crumbling, and a new world order is about to be ushered in. In other words, the Amazon or eBay of digital online music is out there somewhere, and someone is going to get really, really rich buying the stock.
Since it was founded in January 1998, EMusic (Nasdaq: EMUS) has established itself at the forefront of how music will be discovered, delivered and enjoyed in the next decade. In addition to having the Internet's largest catalog of downloadable MP3 music available for purchase, EMusic operates one of the most popular families of music-oriented Web sites -- including RollingStone.com, EMusic.com, DownBeat.com and IUMA. The company is based in Redwood City, California, with regional offices in Chicago, Los Angeles, New York and Nashville.
Music Download site Napster is getting an estimated 6 million visitors a day and is evidence of the exploding demand for digital music... As Napster litigation proceeds, most feel that the Legitimate Music Sites will gain attention and Customers...
Literally dozens of companies have been founded to capitalize on the Internet music revolution, as the industry shifts from a world where recorded music is packaged and sold in retail outlets to one where music is digitized and zapped to your computer, your car, or your PalmPilot.
The hype surrounding MP3, the most popular format for playing digital music, drove MP3.com's stock above $100 on the day of its July trading debut; it closed the day at $3.59...Similarly, Musicmaker closed on its first day at $24 but now trades at $3.12. And EMusic.com, a site that sells music files you can download to your PC, has swung wildly between a high of $35 and low of $5. It's now at $0.28.
EMUS 2X normal volume on Thursday...EMUS 4X normal volume on Friday...EMUS under a dollar appears to be a tremendous opportunity to those interested in High Risk/ High Reward...
As many of you are aware, We are receiving increasing Member Mails on EMUS as a potential big gainer in the Under a Buck sector... Rumors include a potential marketing alliance with Yahoo, and a potential Windfall from lawsuits against MPPP...
EMusic, MP3.com, and the Napster music download service are similar in some respects: All are Internet-era, online music pure-plays. But their "peer-to-peer" disputes highlight the complex battle lines being drawn. Where MP3.com has taken some pains to emphasize differences between it and the more overtly renegade Napster service, both firms found themselves sued on essentially the same grounds by some of the world's largest media companies.
EMusic last month said it would take steps to prevent the distribution of its music over the Napster service. The company's internally developed software uses "acoustic fingerprinting'' to continually identify songs available on Napster that infringe the rights of EMusic's artist and label partners.
The company said it got nowhere in earlier discussions with Napster about a consumer-friendly way of dealing with the matter. EMusic's new software will identify Napster users trading its music, whose names will be provided to Napster, which has agreed to block those accounts.
A fairly brute-force method, EMusic's acoustic fingerprinting may indeed accomplish its goal, as perhaps will the company's suit against the embattled MP3.com. It will also prove to be a make-shift effort until more comprehensive, insightful solutions are found to transform problems that will not go away into business models and practices that work for everybody, consumers included.
EMUS also has potential for broad acceptance of their Acoustic FingerPrint software, which some believe will become the basis for an Industry Standard in tracking/ Payment technology...
EMUS also has potential for further expansion of their rapidly growing content catalog...several major recording labels are rumored to be considering EMUS as their legal online distributor...
EMUS expected to be discussed on CNBC the first week of January 2001 as litigation proceeds...
MUSIC SITES
legal
Emusic.com Of the few sites that offers real MP3's, from realartists, at reasonable prices with no strings attached. (It's a bit heavy on the oldies.)
MP3.com Despite losing battles with the record industry, this isstill the premiere site for MP3 files and technical info.Thousands of tunes are free for downloading, mostly from unknowns.
MusicMaker.com If you don't have a CD-writer, MusicMaker willbuild a custom CD for two bucks a track. Its selection is limited, but if you're into oldies, folk, blues, or classiccountry, you'll find plenty.
Imix.com In addition to making CD mixes from a limited selectionof artists (again, heavy on the oldies), Imix will create acustom DVD of music videos.
less legal
Napster.com Download Napster's software and join millions ofmusic fans who have turned the Internet into a giant disk drivefull of "free" MP3 files.
Gnutella This anarchist's dream lets everybody share everythingon the Internet, including MP3 files and videos. It's likely tosucceed Napster because it has no central server and nothing forthe lawyers to attack. There's no central Gnutella site, either,but a good place to start is ZDNet's Gnutella Guide atmusic.zdnet.com/features/gnutella.
Scour.com This slick, successful search system is already underattack by the movie industry, but there are still plenty of MP3'sand videos available.
Imesh.com A popular file sharing system that stands to grow ifNapster goes down for the count, even if its long-term legal prospects are iffy.
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EMUS on NEWSWATCH for month of Jan 2001...
EMusic.com Inc. Last: 9/32 Change: unch Volume: 1,507,400
www.emusic.com
www.rollingstone.com
www.iuma.com
www.downbeat.com
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