Comments From The Stock Masters 3/19/2007

RealNetworks, Inc. worth looking at
With the market doing so well today, let’s take a look at a company that isn’t doing so hot. RealNetworks, Inc. (RNWK) has taken a beating in the last 3 months falling 28% in share price. Shares are trading around $7.77, which is 20 cents from their 52-week low. The Masters are further inclined to mention RNWK after they were Upgraded last week by Goldman Sachs and the response was a quick rally followed by shares falling right back down. Goldman Sachs analyst Anthony Noto upgraded RealNetworks to "Neutral" from "Sell". He does not see a significant downside to the stock following its weakness over the past few months. Noto went on to say:
"Our fundamental view that the company operates in a competitive environment and could see decelerating growth in many of its product lines remains unchanged."
Noto believes these concerns are already priced into the stock with it trading at such low prices. He then said:
"We also believe that the company could be increasingly interested in buying back shares at current levels, which would provide near-term support."
RNWK brought home $395M in revenue last year and $145M in net income – thus they are profitable America. Besides their consumer products and services such as Rhapsody, RealPlayer, and Real Music Store RNWK has its Helix Initiative and the Helix Servers going for them. RealNetworks is more than just their RealPlayer and could be worth a look while it is trading at its current levels.

With crap sales of the PS3, Sony (SNE) could be the perfect short candidate. So in over six years, the WORST month the PS2 had in America is 87,000 more units than the PS3 unit sales in February. The PS3 sales were barely 60% of the worst PS2 monthly sales. Sony is in trouble (read more) .

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