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This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer.For further disclosures, please see last page of this report.
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Key Developments (past week)Deals (M&A, Finance) – Online Luxury – Hot Sector in a Poorer World Booyah (virtual world operator) raised $20 mm in Series C financing. Social media brand and charity promoter, SocialVibe, raised an $11.7 mm financing
round. Activity in the online luxury retail space headed up this week with Brandsclub (Brazilian
luxury flash retailer) in a $17 mm funding and Gilt Groupe raising $35 mm.
Financial Results/Guidance Fluid Music (TSX:FMN, digital music distributor) reported Q1/F10 revenue of $15.9 mm
(vs. $1.3 mm in the same period last year) and EPS of ($0.06) vs. ($0.03) in Q1/F09. Points International (TSX:PTS, rewards program manager) reported strong revenue
growth – up 11% Y/Y to $23.5 mm, and break-even EPS. Excluding contribution last year from a discontinued relationship with a major customer (Delta Airlines), revenue growth was 205% Y/Y.
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Public Company Data
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Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min# Companies 100 - - -Market Cap (US$ mm) 82,162.9 67.9 36,142.4 1.2Revenue (US$ mm) 23,048.3 59.8 3,057.7 0.01 Year revenue growth 5.3% 857.0% -91.4%EBITDA as % of revenue - 13.4% 67.7% -75.0%Net cash (US$ mm) 9,044.1 2.1 1,827.7 -670.8TEV/Revenue - 1.9x 41.8x 0.1xTEV/EBITDA - 8.4x 36.6x 0.8xP/E - 16.0x 83.4x 0.0xRelative to 52 week high -37.8% 0.0% -97.6%
Capital Market Activity Ranking – by Sector, last three months
Advertising has most deals in last 3 months
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Top 5 Sectors (2008-present)
$ Raised # Deals
0.0
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700.0
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(US
$ m
m)
Social Networks Gaming Advertising Virtual World Video
0
5
10
15
20
25
30
Jan-
08
Feb-
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(# D
eals
)
Social Networks Advertising Gaming Virtual World Video
Top 5 sectors average $155m & 14 deals per month (aggregate)
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Upcoming Events/Earnings
Source: CapitalIQ
Company Date Time Quarter Conf Call DetailsGiant Interactive Group, Inc. (NYSE:GA) 17-May-10 9:00 PM (EST) Q1/10 1-866-804-6921Wizzard Softw are Corporation (AMEX:WZE) 18-May-10 1:00 PM (EST) Q1/10 1-877-407-8033Netease.com Inc. (NasdaqGS:NTES) 19-May-10 9:00 PM (EST) Q1/10 877-941-2069
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Public Company ListingC ompany Name Tic ker E xc hange
Trading C urrenc y HQ
C urrent P rice
US $ Market C ap (mm) E mployees
Accelerize New Media , Inc. AC LZ OT C B B US D United S tates 1 16.6 10 Actoz S oft C o. , L td. A052790 K OS E K R W S outh K orea 11,100 84.8 NA AOL, Inc. AOL NY S E US D United S tates 24 2,554.9 6,700 AQ Interactive, Inc. 3838 T S E J P Y J apan 122,500 72.3 NA As knet AG XT R A:A5A XT R A E UR G ermany 4 22.3 NA B eyond C ommerce, Inc. B Y OC OT C B B US D United S tates 0 4.3 NA B right T hings plc AIM:B G T AIM G B P United K ingdom 0 6.4 9 B roadW ebAs ia Inc. B W B A OT C P K US D United S tates 0 1.7 46 C DC C orp. C HIN.A Nas daqG S US D Hong K ong 2 244.2 NA C hangyou.com L imited C Y OU Nas daqG S US D C hina 29 1,489.8 1,308 C hines e G amer International G T S M:3083 G T S M T W D T aiwan 344 925.3 NA C ornerW orld C orporation C W R L OT C B B US D United S tates 0 1.9 16 C yberplex Inc. T S X:C X T S X C AD C anada 1 46.1 NA DADA S pA C M:DA C M E UR Ita ly 3 67.0 NA Dena C o. L td. T S E :2432 T S E J P Y J apan 792,000 4,079.9 NA Digita lP os t Interactive, Inc. DG LP OT C B B US D United S tates 0 4.5 6 Digita lT own, Inc. DG T W OT C B B US D United S tates 2 48.0 3 Dolphin Digita l Media , Inc. DP DM OT C B B US D United S tates 0 17.0 NA E n2G o Internationa l, Inc. E T G I OT C B B US D United S tates 0 4.8 NA F luid Mus ic C anada , Inc. T S X:F MN T S X C AD United S tates 2 112.4 NA F rogs ter Interactive P ictures AG F R G XT R A E UR G ermany 19 59.6 NA G amania Digita l E nterta inment C o. , L td. 6180 G T S M T W D T aiwan 52 253.8 NA G ameOn C o Ltd. 3812 T S E J P Y J apan 87,000 94.0 NA G eoS entric Oyj G E O1V HLS E E UR F inland 0 44.2 120 G iant Interactive G roup, Inc. G A NY S E US D C hina 7 1,644.4 NA G igaMedia L td. G IG M Nas daqG S US D T aiwan 2 134.7 751 G lu Mobile, Inc. G LUU Nas daqG M US D United S tates 1 40.4 479 G ravity C o. , L td G R V Y Nas daqG M US D S outh K orea 2 51.4 469 G ree, Inc. T S E :3632 T S E J P Y J apan 5,590 2,743.0 NA G ungHo Online E nterta inment, Inc. 3765 OS E J P Y J apan 230,000 286.3 NA HanbitS oft, Inc. A047080 K OS E K R W S outh K orea 3,935 74.7 NA HUG HE S T elematics , Inc. HUT C OT C B B US D United S tates 3 85.2 276 Hutchis on T elecommunications Hong K ong HS E HK :215 S E HK HK D Hong K ong 2 987.4 1,732 IAC /InterActiveC orp. IAC I Nas daqG S US D United S tates 23 2,561.5 3,200 IAS E nergy, Inc. IAS C .A OT C P K US D C anada 0 11.3 NA infoG R OUP , Inc. IUS A Nas daqG S US D United S tates 8 461.9 3,146 Internet G roup S A W S E : IG R W S E P LN P oland 1 9.5 NA
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Public Company Listing cont.C ompany Name Tic ker E xc hange
Trading C urrenc y HQ
C urrent P ric e
US $ Market C ap (mm) E mployees
is eemedia Inc. IE E T S XV C AD C anada 0.11 7.0 79 J umbuck E nterta inment L imited AS X: J MB AS X AUD Aus tra lia 0.24 10.0 NA K ent International Holdings Inc. K NT H O T C P K US D United S tates 1.80 6.4 NA K ings oft C orporation L imited 3888 S E HK HK D C hina 5.54 773.6 6 K iwibox.C om, Inc. K IW B O T C B B US D United S tates 0.01 4.9 NA L ingo Media C orporation T S XV :L M T S XV C AD C anada 0.69 8.3 65 LookS mart, L td. LOOK Nas daqG M US D United S tates 1.80 30.9 NA Mixi, Inc. 2121 T S E J P Y J apan 457,000.00 766.4 NA Mobile Data C orp. MB Y L O T C B B US D United S tates 0.05 1.2 2,936 Modern T imes G roup Mtg AB MT G B O M S E K S weden 415.10 3,513.0 2 Moggle, Inc DB :M0C DB E UR United S tates 1.00 57.5 NA MO K O.mobi L imited MK B AS X AUD Aus tra lia 0.08 8.3 NA Multiplied Media C orporation T S XV :MMC T S XV C AD C anada 0.15 36.1 405 Myriad G roup AG MY R N S W X C HF S witzerland 4.14 176.8 NA NE OW IZ G ames C orporation A095660 K OS E K R W S outh K orea 36,750.00 672.0 NA NetDragon W ebS oft, Inc. 777 S E HK HK D C hina 3.79 256.8 NA Neteas e.com Inc. NT E S Nas daqG S US D C hina 32.15 4,164.1 224 NeuLion Incorporated T S X:NLN T S X C AD C anada 0.50 56.2 NA NeXplore C orporation NXP C O T C P K US D United S tates 0.45 25.1 NA Ngi G roup Inc. 2497 T S E J P Y J apan 38,750.00 52.1 160 Northgate T echnologies L imited 590057 B S E INR India 17.00 13.0 2,523 OAO R B C Information S ys tems R B C I MIC E X R UB R us s ia 39.51 174.4 3,700 Open T ext C orp. OT E X Nas daqG S US D C anada 45.22 2,567.6 590 Openwave S ys tems Inc. OP W V Nas daqG S US D United S tates 2.35 197.1 NA Oriented Media G roup B erhad OME DIA K LS E MY R Malays ia 0.10 4.2 20 P aid Inc. P AY D O T C B B US D United S tates 0.35 93.6 NA P erfect W orld C o. , L td. P W R D Nas daqG S US D C hina 24.71 1,231.2 NA P NI Digita l Media Inc. T S XV :P N T S XV C AD C anada 1.70 55.5 91 P oints Internationa l L td. T S X:P T S T S X C AD C anada 0.54 77.9 71 Quepas a C orp. QP S A O T C B B US D United S tates 4.95 64.2 NA R ea l V a lue E s tates , Inc. R V L U O T C B B US D Is rael 1.03 6.6 1,754 R ea lNetworks Inc. R NW K Nas daqG S US D United S tates 3.94 532.9 NA S ahara Media Holdings , Inc. S HHD O T C B B US D United S tates 0.16 5.4 220 S core Media Inc. T S X:S C R T S X C AD C anada 0.81 63.3 NA S handa Interactive E nterta inment Ltd. S NDA Nas daqG S US D C hina 42.43 2,853.6 519 S hutterfly, Inc. S F L Y Nas daqG S US D United S tates 22.65 608.3 NA
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Public Company Listing cont.
C ompany Name Tic ker E xc hangeTrading
C urrenc y HQC urrent
P riceUS $ Market
C ap (mm) E mployees
S K C ommunications C o. , L td. A066270 K OS E K R W S outh K orea 18,550.00 675.5 15 S NAP Interactive, Inc. S T V I OT C B B US D United S tates 0.19 6.3 NA S ocia lwis e, Inc. S C LW OT C B B US D United S tates 0.53 26.5 3,997 S ohu.com Inc. S OHU Nas daqG S US D C hina 44.89 1,697.7 155 S park Networks , Inc. LOV AME X US D United S tates 3.34 68.8 NA S pectrumDNA, Inc. S P XA OT C B B US D United S tates 0.09 6.2 916 T a leo C orp. T LE O Nas daqG M US D United S tates 25.21 1,002.3 7,515 T encent Holdings L td. 700 S E HK HK D C hina 154.20 36,142.4 7,665 T he New Y ork T imes C ompany NY T NY S E US D United S tates 9.26 1,348.3 1,010 T he9 L imited NC T Y Nas daqG S US D C hina 4.84 123.5 274 T heS treet.com, Inc. T S C M Nas daqG M US D United S tates 3.26 102.9 28 T rans G aming, Inc. T S XV :T NG T S XV C AD C anada 0.69 39.5 700 T ree.C om, Inc. T R E E Nas daqG M US D United S tates 7.21 80.8 39 Unilava C orporation UNLA OT C B B US D United S tates 0.40 40.0 NA Unis erve C ommunications C orp. T S XV :US S T S XV C AD C anada 0.12 3.3 1,699 United Online, Inc. UNT D Nas daqG S US D United S tates 7.22 629.1 NA UOMO Media , Inc UOMO OT C B B US D C anada 0.03 2.2 1,086 V alueC lick , Inc. V C LK Nas daqG S US D United S tates 11.41 927.9 450 V elti P lc V E L AIM G B P United K ingdom 4.60 252.8 2 V OIS , Inc. V OIS OT C B B US D United S tates 0.01 8.0 83 W ebMediaB rands Inc W E B M Nas daqG S US D United S tates 1.00 37.4 NA W ebzen Inc. K OS E :A069080 K OS E K R W S outh K orea 12,550.00 129.0 80 W izzard S oftware C orporation W ZE AME X US D United S tates 0.25 14.5 NA W orlds .com Inc. W DDD OT C B B US D United S tates 0.08 4.6 NA XING AG O1B C XT R A E UR G ermany 27.03 171.8 NA Y D Online C orp. A052770 K OS E K R W S outh K orea 6,100.00 79.4 NA Y nk K orea Inc. A023770 K OS E K R W S outh K orea 2,800.00 19.4 -
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DisclaimerRELEVANT DISCLOSURES APPLICABLE TO: NONE1. None applicable.ANALYST CERTIFICATIONEach analyst of Mackie Research Capital Corporation whose name appears in this report
hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.Information about Mackie Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our web site at www.mackieresearch.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Mackie Research Capital Corporation assume any responsibility or liability. Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the expressed permission of Mackie Research Capital Corporation. (U.S. Institutional Clients — Research Capital U.S.A. Inc. (a wholly owned subsidiary of Mackie Research Capital Corporation) accepts responsibility for the contents of this report subject to the terms & limitations set out above. Firms orinstitutions receiving this report should effect transactions in securities discussed in the report through Research Capital U.S.A. Inc., a Broker-Dealer Registered with the United States Securities and Exchange Commission).
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