Web 2.0 Weekly - June 8, 2010: "Strong Week in Web 2.0 M&A"
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Transcript of Web 2.0 Weekly - June 8, 2010: "Strong Week in Web 2.0 M&A"
www.mackieresearch.com
Web 2.0 Weekly
“Strong Week in Web 2.0 M&A”
Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved
June 8, 2010
David Shore, CFA, MBA [email protected]
Damian Wojcichowsky, CFA 416.860.7652
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.
www.mackieresearch.com
www.mackieresearch.com2
Key Developments (past week)
Deals (M&A, Finance) – Acquisitions the Key Feature in the Landscape
� Google (Nasdaq:GOOG) acquired advertising analytics firm, Invite Media, for a rumoured US$70 mm.
� In the gaming sector, Challenge Games, the virtual goods funded game maker, was acquired by Zynga for US$20.5 mm.
� FetchBack, a post-customer interaction advertising platform, was acquired for US$40 mm by GSI Commerce.
� The largest financing in the week outside of acquisitions was US$40 mm raised by HauteLook, a Los Angeles-based luxury Internet retailer.
Financial Results/Guidance� Shanda Interactive (Nasdaq:SNDA), a Chinese diversified entertainment media
company, reported revenue decline of 16% Y/Y to RMB1,107 mm as the company’s gaming revenues registered a decline.
www.mackieresearch.com3
Public Company Data
www.mackieresearch.com4
Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min# Companies 102 - - -
Market Cap (US$ mm) 78,702.4 66.4 34,512.6 1.4
Revenue (US$ mm) 23,227.2 55.2 3,057.7 0.0
1 Year revenue growth 5.0% 8961.6% -100.0%
EBITDA as % of revenue - 13.3% 63.1% -63.7%
Net cash (US$ mm) 8,902.1 1.8 1,826.4 -670.8
TEV/Revenue - 2.0x 42.8x 0.0x
TEV/EBITDA - 8.5x 48.9x 0.0x
P/E - 16.7x 81.3x 0.0x
Relative to 52 week high -40.7% 0.0% -95.6%
Source: CapitalIQ
www.mackieresearch.com5
Public Company Distribution
27
16
10
76
5
3 3 3 32 2 2 2
1 1 1 1 1 1 1 1
0
5
10
15
20
25
30
Ga
min
g
So
cia
l N
etw
ork
ing
Me
dia
Div
ers
ifie
d
Ma
rketin
g
Mobile
Infr
astr
uctu
re
SM
S/V
oic
e
Ente
rpris
e
Ad
vert
isin
g
Inte
rnet
Reta
il
Vir
tual W
orl
d
Datin
g
Mu
sic
Ve
rtic
al C
om
munit
ies
Co
llab
ora
tio
n
Po
dca
stin
g
Lea
rnin
g
Vid
eo
Sea
rch
Pay
ment
Fin
ancia
l S
erv
ices
By Sector By Country
0
5
10
15
20
25
30
35
40
45
Unit
ed S
tate
s
Cana
da
Chin
a
So
uth
Kore
a
Japa
n
Ta
iwa
n
Ge
rma
ny
Au
str
alia
Un
ited
Kin
gdom
Hong K
ong
Po
land
Ru
ssia
Fin
lan
d
Sw
ed
en
Mala
ysia
India
Italy
Sw
itz
erla
nd
Isra
el
Source: CapitalIQ
www.mackieresearch.com6
Valuation Dashboard – 1 Week
Rising
35%
Falling
55%
Flat
10%
Rising
42%
Falling
56%
Flat
2%
Rising
43%
Falling
55%
Flat
2%
Market Cap
Rising
44%
Falling
53%
Flat
3%
EV/Revenue
EV/EBITDA P/E
www.mackieresearch.com7
Median EV/Revenue
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x4
/20
/20
09
4/2
7/2
00
95
/4/2
00
95
/11
/20
09
5/1
8/2
00
95
/25
/20
09
6/1
/20
09
6/8
/20
09
6/1
5/2
00
96
/22
/20
09
6/2
9/2
00
97
/6/2
00
97
/13
/20
09
7/2
0/2
00
97
/27
/20
09
8/3
/20
09
8/1
0/2
00
98
/17
/20
09
8/2
4/2
00
98
/31
/20
09
9/7
/20
09
9/1
4/2
00
99
/21
/20
09
9/2
8/2
00
91
0/5
/20
09
10
/12
/20
09
10
/19
/20
09
10
/26
/20
09
11
/2/2
00
91
1/9
/20
09
11
/16
/20
09
11
/23
/20
09
11
/30
/20
09
12
/7/2
00
91
2/1
4/2
00
91
2/2
1/2
00
91
2/2
8/2
00
91
/4/2
01
01
/11
/20
10
1/1
8/2
01
01
/25
/20
10
2/1
/20
10
2/8
/20
10
2/1
5/2
01
02
/22
/20
10
3/1
/20
10
3/8
/20
10
3/1
5/2
01
03
/22
/20
10
3/2
9/2
01
04
/5/2
01
04
/12
/20
10
4/1
9/2
01
04
/26
/20
10
5/3
/20
10
5/1
0/2
01
05
/17
/20
10
5/2
4/2
01
05
/31
/20
10
6/7
/20
10
393940414141414143454646474747484951515150545556616161626666666465667070707073727068717371777378777980818180828183858484
Mu
ltip
le (
x)
Median Long-term average
# companies
Source: CapitalIQ
Revenue multiples down fourth
consecutive week
www.mackieresearch.com8
Median EV/EBITDA
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
4/2
0/2
009
4/2
7/2
009
5/4
/2009
5/1
1/2
009
5/1
8/2
009
5/2
5/2
009
6/1
/2009
6/8
/2009
6/1
5/2
009
6/2
2/2
009
6/2
9/2
009
7/6
/2009
7/1
3/2
009
7/2
0/2
009
7/2
7/2
009
8/3
/2009
8/1
0/2
009
8/1
7/2
009
8/2
4/2
009
8/3
1/2
009
9/7
/2009
9/1
4/2
009
9/2
1/2
009
9/2
8/2
009
10/5
/2009
10/1
2/2
009
10/1
9/2
009
10/2
6/2
009
11/2
/2009
11/9
/2009
11/1
6/2
009
11/2
3/2
009
11/3
0/2
009
12/7
/2009
12/1
4/2
009
12/2
1/2
009
12/2
8/2
009
1/4
/2010
1/1
1/2
010
1/1
8/2
010
1/2
5/2
010
2/1
/2010
2/8
/2010
2/1
5/2
010
2/2
2/2
010
3/1
/2010
3/8
/2010
3/1
5/2
010
3/2
2/2
010
3/2
9/2
010
4/5
/2010
4/1
2/2
010
4/1
9/2
010
4/2
6/2
010
5/3
/2010
5/1
0/2
010
5/1
7/2
010
5/2
4/2
010
5/3
1/2
010
6/7
/2010
2021 2223 23 2222 2224 2326 2324 2426 27 2726 2525 2628 3030 34 3535 3740 3839 3939 4142 39 3941 4342 4143 4443 44 4444 4545 4850 5053 5353 51 5249 5051
Multip
le (
x)
Median Long-term average
# companies
Source: CapitalIQ
EV/EBITDA multiples remain depressed below LT average
www.mackieresearch.com9
Median P/E
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
4/2
0/2
009
4/2
7/2
009
5/4
/2009
5/1
1/2
009
5/1
8/2
009
5/2
5/2
009
6/1
/2009
6/8
/2009
6/1
5/2
009
6/2
2/2
009
6/2
9/2
009
7/6
/2009
7/1
3/2
009
7/2
0/2
009
7/2
7/2
009
8/3
/2009
8/1
0/2
009
8/1
7/2
009
8/2
4/2
009
8/3
1/2
009
9/7
/2009
9/1
4/2
009
9/2
1/2
009
9/2
8/2
009
10/5
/2009
10/1
2/2
009
10/1
9/2
009
10/2
6/2
009
11/2
/2009
11/9
/2009
11/1
6/2
009
11/2
3/2
009
11/3
0/2
009
12/7
/2009
12/1
4/2
009
12/2
1/2
009
12/2
8/2
009
1/4
/2010
1/1
1/2
010
1/1
8/2
010
1/2
5/2
010
2/1
/2010
2/8
/2010
2/1
5/2
010
2/2
2/2
010
3/1
/2010
3/8
/2010
3/1
5/2
010
3/2
2/2
010
3/2
9/2
010
4/5
/2010
4/1
2/2
010
4/1
9/2
010
4/2
6/2
010
5/3
/2010
5/1
0/2
010
5/1
7/2
010
5/2
4/2
010
5/3
1/2
010
6/7
/2010
1919 1818 19 1819 1820 2020 1819 1920 21 2425 2424 2526 2827 31 3232 3234 3435 3638 4040 39 4041 4142 3840 4041 38 3835 3333 3235 3536 3535 37 3432 3635
Multip
le (
x)
Median Long-term average
# companies
Source: CapitalIQ
P/E multiples also below LT average
www.mackieresearch.com10
Average Valuation – by Sector
-
5.0
10.0
15.0
20.0
25.0
Infr
astr
uctu
re
Music
Socia
l N
etw
ork
ing
Le
arn
ing
Div
ers
ifie
d
Vert
ical
Com
mun
itie
s
Mobile
SM
S/V
oic
e
Mark
eti
ng
Gam
ing
Se
arc
h
Colla
bora
tion
Media
Advert
isin
g
Podc
asti
ng
Vid
eo
Inte
rnet
Re
tail
Ente
rpri
se
Dati
ng
Fin
anc
ial S
erv
ice
s
Virtu
al
Wo
rld
2 2 7 1 5 1 4 3 6 21 1 1 9 3 1 1 2 3 2 1 1# Companies
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Mobile
Ente
rpri
se
Div
ers
ifie
d
Inte
rnet
Re
tail
Media
Colla
bora
tion
Socia
l N
etw
ork
ing
Gam
ing
Mark
eti
ng
Dati
ng
Advert
isin
g
1 2 5 2 6 1 5 14 3 1 1# Companies
EV/Revenue EV/EBITDA
www.mackieresearch.com11
EV/Revenue Ranking
0.20.20.20.30.30.30.40.60.60.60.60.6 0.70.70.70.80.80.80.80.8 1.0 1.0 1.0 1.1 1.2 1.3 1.3 1.4 1.4 1.4 1.5 1.5 1.7 1.7 1.8 1.9 2.02.0 2.12.12.12.22.22.22.22.62.62.82.93.03.0 3.13.33.33.53.9 4.14.74.9 5.25.6
7.5 7.9
9.79.910.010.411.811.912.0
12.7
18.1
31.432.7
42.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
RealN
etw
ork
s Inc.
Gam
eO
n C
o L
td.
Cyberp
lex Inc.
Acto
z S
oft C
o., L
td.
Openw
ave S
yste
ms Inc.
Jum
buck E
nte
rtain
ment Lim
ited
Tre
e.C
om
, In
c.
Gig
aM
edia
Ltd
.G
lu M
obile
, In
c.
Nort
hgate
Technolo
gie
s L
imite
dP
oin
ts Inte
rnatio
nal L
td.
DA
DA
SpA
Unis
erv
e C
om
munic
atio
ns C
orp
.A
OL, In
c.
CD
C C
orp
.U
nite
d O
nlin
e, In
c.
IAC
/Inte
rActiv
eC
orp
.T
he N
ew
York
Tim
es C
om
pany
TheS
treet.com
, In
c.
NetD
ragon W
ebS
oft, In
c.
Inte
rnet G
roup S
AC
orn
erW
orld C
orp
ora
tion
OA
O R
BC
Info
rmatio
n S
yste
ms
AQ
Inte
ractiv
e, In
c.
HanbitS
oft, In
c.
info
GR
OU
P, In
c.
Hutc
his
on T
ele
com
munic
atio
ns H
ong K
ong
SN
AP
Inte
ractiv
e, In
c.
Oriente
d M
edia
Gro
up B
erh
ad
NeuLio
n Incorp
ora
ted
Gam
ania
Dig
ital E
nte
rtain
ment C
o., L
td.
Spark
Netw
ork
s, In
c.
Shutterf
ly, In
c.
Valu
eC
lick, In
c.
GungH
o O
nlin
e E
nte
rtain
ment, Inc.
Pla
tform
a M
edio
wa P
oin
t G
roup S
.A.
Score
Media
Inc.
UO
MO
Media
, In
cP
NI D
igita
l Media
Inc.
Sohu.c
om
Inc.
Modern
Tim
es G
roup M
tg A
BV
elti
Plc
Webzen Inc.
XIN
G A
GN
EO
WIZ
Gam
es C
orp
ora
tion
Open T
ext C
orp
.F
rogste
r In
tera
ctiv
e P
ictu
res A
GW
izzard
Softw
are
Corp
ora
tion
iseem
edia
Inc.
Unila
va C
orp
ora
tion
eP
ro L
td.
Myriad G
roup A
GK
ingsoft C
orp
ora
tion L
imite
dT
ale
o C
orp
.M
ixi,
Inc.
SK
Com
munic
atio
ns C
o., L
td.
Changyou.c
om
Lim
ited
WebM
edia
Bra
nds Inc
Flu
id M
usic
Canada, In
c.
Accele
rize N
ew
Media
, In
c.
HU
GH
ES
Tele
matic
s, In
c.
Dig
italP
ost In
tera
ctiv
e, In
c.
Tra
nsG
am
ing, In
c.
Dena C
o. Ltd
.G
ree, In
c.
Lin
go M
edia
Corp
ora
tion
Chin
ese G
am
er
Inte
rnatio
nal
GeoS
entr
ic O
yj
Beyond C
om
merc
e, In
c.
MO
KO
.mobi L
imite
dP
aid
Inc.
Tencent H
old
ings L
td.
Bright T
hin
gs p
lcS
pectr
um
DN
A, In
c.
Worlds.c
om
Inc.
Source: CapitalIQ
SpectrumDNA has highest revenue multiple at 42.8x
www.mackieresearch.com12
EV/EBITDA Ranking
2.1 3.1 3.8 4.4 4.9 4.9 5.4 6.1 6.2 6.5 6.7 6.9 7.3 7.5 7.7 7.8 7.9 8.4 8.5 8.7 8.8 9.3 9.5 10.611.312.7 12.813.2 13.814.6 15.016.2 17.3
20.422.5
24.7
34.8
41.3
46.348.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
AO
L, In
c.
Cyberp
lex Inc.
Unite
d O
nlin
e, In
c.
NetD
ragon W
ebS
oft, In
c.
The N
ew
York
Tim
es C
om
pany
Sohu.c
om
Inc.
Hutc
his
on T
ele
com
munic
atio
ns H
ong K
ong H
old
ings
Ltd
.
CD
C C
orp
.
Valu
eC
lick, In
c.
Changyou.c
om
Lim
ited
info
GR
OU
P, In
c.
Unis
erv
e C
om
munic
atio
ns C
orp
.
GungH
o O
nlin
e E
nte
rtain
ment, Inc.
Spark
Netw
ork
s, In
c.
DA
DA
SpA
Kin
gsoft C
orp
ora
tion L
imite
d
NE
OW
IZ G
am
es C
orp
ora
tion
PN
I D
igita
l Media
Inc.
Velti
Plc
XIN
G A
G
Gam
ania
Dig
ital E
nte
rtain
ment C
o., L
td.
Open T
ext C
orp
.
IAC
/Inte
rActiv
eC
orp
.
Pla
tform
a M
edio
wa P
oin
t G
roup S
.A.
Openw
ave S
yste
ms Inc.
Score
Media
Inc.
Shutterf
ly, In
c.
HanbitS
oft, In
c.
TheS
treet.com
, In
c.
Mix
i, In
c.
Modern
Tim
es G
roup M
tg A
B
Fro
gste
r In
tera
ctiv
e P
ictu
res A
G
Gre
e, In
c.
Chin
ese G
am
er
Inte
rnatio
nal
Dena C
o. Ltd
.
Tale
o C
orp
.
Tencent H
old
ings L
td.
SK
Com
munic
atio
ns C
o., L
td.
Poin
ts Inte
rnatio
nal L
td.
Tre
e.C
om
, In
c.
Excluding EV/EBITDA > 100xSource: CapitalIQ
Tree.com leads the group at 48.9x
www.mackieresearch.com13
P/E Ranking
4.1
9.2 9.3 9.5 10.5 11.3 12.9 13.2 13.5 14.0 14.516.7 18.6 18.7 20.4
26.7 27.231.6
33.7
40.745.5 45.8 46.1 46.8 48.0
51.4
70.673.4
81.3
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Unis
erv
e C
om
munic
atio
ns C
orp
.
Unite
d O
nlin
e, In
c.
Gam
eO
n C
o L
td.
Changyou.c
om
Lim
ited
AO
L, In
c.
DA
DA
SpA
Cyberp
lex Inc.
Kin
gsoft C
orp
ora
tion L
imite
d
Sohu.c
om
Inc.
The N
ew
York
Tim
es C
om
pany
Valu
eC
lick, In
c.
Hutc
his
on T
ele
com
munic
atio
ns H
ong K
ong H
old
ings
Ltd
.
NE
OW
IZ G
am
es C
orp
ora
tion
Fro
gste
r In
tera
ctiv
e P
ictu
res A
G
NetD
ragon W
ebS
oft, In
c.
Velti
Plc
Chin
ese G
am
er
Inte
rnatio
nal
Gam
ania
Dig
ital E
nte
rtain
ment C
o., L
td.
Gre
e, In
c.
Open T
ext C
orp
.
Mix
i, In
c.
CD
C C
orp
.
Tencent H
old
ings L
td.
info
GR
OU
P, In
c.
Poin
ts Inte
rnatio
nal L
td.
Dena C
o. Ltd
.
HanbitS
oft, In
c.
Acto
z S
oft C
o., L
td.
Shutterf
ly, In
c.
Source: CapitalIQ
Shutterfly has the highest P/E at 81.3x
www.mackieresearch.com14
Total Market Capitalization
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
6/1
5/2
009
6/2
2/2
009
6/2
9/2
009
7/6
/2009
7/1
3/2
009
7/2
0/2
009
7/2
7/2
009
8/3
/2009
8/1
0/2
009
8/1
7/2
009
8/2
4/2
009
8/3
1/2
009
9/7
/2009
9/1
4/2
009
9/2
1/2
009
9/2
8/2
009
10/5
/2009
10/1
2/2
009
10/1
9/2
009
10/2
6/2
009
11/2
/2009
11/9
/2009
11/1
6/2
009
11/2
3/2
009
11/3
0/2
009
12/7
/2009
12/1
4/2
009
12/2
1/2
009
12/2
8/2
009
1/4
/2010
1/1
1/2
010
1/1
8/2
010
1/2
5/2
010
2/1
/2010
2/8
/2010
2/1
5/2
010
2/2
2/2
010
3/1
/2010
3/8
/2010
3/1
5/2
010
3/2
2/2
010
3/2
9/2
010
4/5
/2010
4/1
2/2
010
4/1
9/2
010
4/2
6/2
010
5/3
/2010
5/1
0/2
010
5/1
7/2
010
5/2
4/2
010
5/3
1/2
010
6/7
/2010
98 98 98 98 98 98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99100100101101101101101101101101101101101101102102102102102102102102102102102102102102102102
(US
$m
)
# companies
Source: CapitalIQ
Total market cap above $80 bn
www.mackieresearch.com15
Total Market Cap – by Sector
-
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0
45,000.0D
ivers
ifie
d
Gam
ing
Media
Socia
l N
etw
ork
ing
Colla
bora
tion
Mark
eting
Ente
rprise
Searc
h
Inte
rnet
Reta
il
Mobile
SM
S/V
oic
e
Music
Dating
Fin
ancia
l S
erv
ices
Advert
isin
g
Virtu
al W
orld
Vid
eo
Vert
ical C
om
munitie
s
Paym
ent
Infr
astr
uctu
re
Learn
ing
Podcasting
8 28 10 17 1 6 3 1 2 5 3 2 2 1 3 2 1 1 1 3 1 1# Companies
Eight Diversified companies totaling over $37.5 bn in market cap
www.mackieresearch.com16
Market Cap Ranking
0
1,000
2,000
3,000
4,000
5,000
6,000
UO
MO
Media
, In
cB
roadW
ebA
sia
Inc.
Corn
erW
orld C
orp
ora
tion
Mobile
Data
Corp
.U
nis
erv
e C
om
munic
atio
ns C
orp
.IA
S E
nerg
y, In
c.
Oriente
d M
edia
Gro
up B
erh
ad
Spectr
um
DN
A, In
c.
En2G
o Inte
rnatio
nal,
Inc.
Kiw
ibox.C
om
, In
c.
SN
AP
Inte
ractiv
e, In
c.
Bright T
hin
gs p
lcR
eal V
alu
e E
sta
tes, In
c.
MO
KO
.mobi L
imite
dB
eyond C
om
merc
e, In
c.
Worlds.c
om
Inc.
Dig
italP
ost In
tera
ctiv
e, In
c.
Kent In
tern
atio
nal H
old
ings Inc.
iseem
edia
Inc.
Inte
rnet G
roup S
AJum
buck E
nte
rtain
ment Lim
ited
Nort
hgate
Technolo
gie
s L
imite
dD
olp
hin
Dig
ital M
edia
, In
c.
Wiz
zard
Softw
are
Corp
ora
tion
Sahara
Media
Hold
ings, In
c.
Lin
go M
edia
Corp
ora
tion
Accele
rize N
ew
Media
, In
c.
Asknet A
GV
OIS
, In
c.
NeX
plo
re C
orp
ora
tion
Unila
va C
orp
ora
tion
Socia
lwis
e, In
c.
LookS
mart
, Ltd
.M
ulti
plie
d M
edia
Corp
ora
tion
GeoS
entr
ic O
yj
Tra
nsG
am
ing, In
c.
Cyberp
lex Inc.
Dig
italT
ow
n, In
c.
WebM
edia
Bra
nds Inc
Glu
Mobile
, In
c.
eP
ro L
td.
Moggle
, In
cN
euLio
n Incorp
ora
ted
Ngi G
roup Inc.
Pla
tform
a M
edio
wa P
oin
t G
roup S
.A.
Fro
gste
r In
tera
ctiv
e P
ictu
res A
GP
NI D
igita
l Media
Inc.
Quepasa C
orp
.G
ravity
Co., L
tdS
core
Media
Inc.
DA
DA
SpA
Paid
Inc.
HanbitS
oft, In
c.
Tre
e.C
om
, In
c.
Spark
Netw
ork
s, In
c.
Poin
ts Inte
rnatio
nal L
td.
Acto
z S
oft C
o., L
td.
Gam
eO
n C
o L
td.
TheS
treet.com
, In
c.
HU
GH
ES
Tele
matic
s, In
c.
AQ
Inte
ractiv
e, In
c.
The9 L
imite
dF
luid
Music
Canada, In
c.
Webzen Inc.
Gig
aM
edia
Ltd
.O
penw
ave S
yste
ms Inc.
OA
O R
BC
Info
rmatio
n S
yste
ms
Myriad G
roup A
GX
ING
AG
NetD
ragon W
ebS
oft, In
c.
CD
C C
orp
.G
ungH
o O
nlin
e E
nte
rtain
ment, Inc.
Velti
Plc
Gam
ania
Dig
ital E
nte
rtain
ment C
o.,
RealN
etw
ork
s Inc.
info
GR
OU
P, In
c.
Unite
d O
nlin
e, In
c.
Shutterf
ly, In
c.
Kin
gsoft C
orp
ora
tion L
imite
dM
ixi,
Inc.
SK
Com
munic
atio
ns C
o., L
td.
NE
OW
IZ G
am
es C
orp
ora
tion
Chin
ese G
am
er
Inte
rnatio
nal
Valu
eC
lick, In
c.
Tale
o C
orp
.H
utc
his
on T
ele
com
munic
atio
ns H
ong
Perf
ect W
orld C
o., L
td.
The N
ew
York
Tim
es C
om
pany
Changyou.c
om
Lim
ited
Sohu.c
om
Inc.
Gia
nt In
tera
ctiv
e G
roup, In
c.
AO
L, In
c.
Open T
ext C
orp
.IA
C/Inte
rActiv
eC
orp
.S
handa Inte
ractiv
e E
nte
rtain
ment Ltd
.M
odern
Tim
es G
roup M
tg A
BG
ree, In
c.
Nete
ase.c
om
Inc.
Dena C
o. Ltd
.T
encent H
old
ings L
td.
Source: CapitalIQ
Tencent’s $33 bn market cap dominates group
www.mackieresearch.com17
Price Performance – 1 Week
Rising
31%
Flat
10%
Falling
59%
Price Momentum• Negative momentum returns, with 59%
of stocks falling over the past week.
www.mackieresearch.com18
Average Price Performance – 1 Week, by Sector
26.3%
5.1% 4.3%2.7% 1.4%
0.0% 0.0%
-0.8% -1.1% -1.3% -1.6%-4.7% -5.5% -5.9% -6.5% -6.8% -7.5% -7.8%
-10.5%-11.6%-12.1%
-16.9%-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Datin
g
Vir
tua
l W
orl
d
Ve
rtic
al
Co
mm
un
itie
s
Sea
rch
Mu
sic
Pa
ym
en
t
Po
dca
stin
g
Ga
min
g
Vid
eo
Ad
vert
isin
g
Div
ers
ifie
d
Me
dia
En
terp
rise
Co
llab
ora
tion
Inte
rnet R
eta
il
So
cia
l
Ne
two
rkin
gF
ina
nci
al
Se
rvic
es
Ma
rketin
g
Mo
bile
Infr
astru
ctu
re
Le
arn
ing
SM
S/V
oic
e
Source: CapitalIQ
Five sectors showed positive returns
www.mackieresearch.com19
Price Performance – 1 Week
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
BW
BA
UN
LA
TS
XV
:US
SG
EO
1V
TS
XV
:MM
CP
AY
DM
BY
LD
PD
MS
HH
DB
YO
CS
PX
AL
OO
KT
SX
V:L
MIE
E2
12
1N
XP
CG
TS
M:3
08
3P
WR
DG
IGM
TS
XV
:TN
GN
YT
24
97
RN
WK
AC
LZ
XT
RA
:A5
AT
SX
V:P
NC
HIN
.AT
SC
MT
LE
OQ
PS
AA
09
56
60
TR
EE
VC
LK
DG
LP
61
80
OP
WV
MK
BU
NT
DF
RG
OT
EX
VO
ISN
CT
YS
FL
YIA
CI
KO
SE
:A0
69
08
0S
OH
UR
BC
IH
UT
CV
EL
38
88
59
00
57
WS
E:IG
RM
TG
B7
00
WS
E:P
GM
TS
X:N
LN
GL
UU
A0
47
08
0A
OL
IUS
AIA
SC
.AC
WR
LR
VL
US
CL
WE
TG
IT
SX
:CX
TS
X:P
TS
UO
MO
WZ
EK
IWB
NT
ES
A0
52
77
07
77
O1
BC
3
81
2G
A3
76
5C
M:D
AC
YO
UL
OV
MY
RN
SN
DA
A0
66
27
0T
SX
:FM
NA
05
27
90
SE
HK
:21
5D
GT
WT
SE
:24
32
WE
BM
GR
VY
OM
ED
IAA
02
37
70
DB
:M0
CS
EH
K:8
08
6T
SX
:SC
RK
NT
HT
SE
:36
32
AS
X:J
MB
38
38
WD
DD
AIM
:BG
TS
TV
I
Source: CapitalIQ
www.mackieresearch.com20
Price Performance (Top 10)
1 Month
0%
10%
20%
30%
40%
50%
60%
70%
Sa
ha
ra
Me
dia
Ho
ldin
gs,
Inc.
Ve
lti P
lc
eP
ro L
td.
Be
yon
d
Co
mm
erc
e,
Inc.
Mo
bile
Da
ta
Co
rp.
Gre
e,
Inc.
Wo
rld
s.co
m
Inc.
Va
lue
Clic
k,
Inc.
Bri
gh
t
Th
ing
s p
lc
Myri
ad
Gro
up
AG
3 Month
0%
50%
100%
150%
200%
250%
300%
350%
400%
Beyond
Com
merc
e,
Inc.
eP
ro L
td.
LookS
mart
, Ltd
.
SK
Com
munic
ations
Co.,
Ltd
.
Velti P
lc
Dig
italT
ow
n,
Inc.
Sahara
Media
Hold
ings,
Inc.
Dena C
o.
Ltd
.
Glu
Mobile
, In
c.
Gre
e,
Inc.
6 Month
0%
500%
1000%
1500%
2000%
2500%
OA
O R
BC
Info
rmation
Syste
ms
eP
ro L
td.
AQ
Inte
ractive,
Inc.
SN
AP
Inte
ractive,
Inc.
Beyond
Com
merc
e,
Inc.
Velti P
lc
Unis
erv
e
Com
munic
ations
Corp
.
Quepasa C
orp
.
SK
Com
munic
ations
Co.,
Ltd
.
Score
Media
Inc.
1 Year
0%
500%
1000%
1500%
2000%
2500%
3000%
OA
O R
BC
Info
rma
tion
Sys
tem
s
eP
ro L
td.
Qu
ep
asa
Co
rp.
Dig
italP
ost
Inte
ractiv
e,
Inc.
De
na
Co
. L
td.
Ve
lti P
lc
Flu
id M
usic
Ca
na
da
, In
c.
Tra
nsG
am
ing
,
Inc.
VO
IS,
Inc.
AQ
Inte
ractiv
e,
Inc.
Source: CapitalIQ
www.mackieresearch.com21
Price Performance (Bottom 10)
1 Week
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Beyo
nd
Com
merc
e,
Inc
.
Sa
hara
Me
dia
Hold
ing
s, In
c.
Dolp
hin
Dig
ital
Med
ia, In
c.
Mobile
Da
ta
Corp
.
Paid
Inc.
Multi
plie
d M
ed
ia
Corp
ora
tion
GeoS
entr
ic O
yj
Unis
erv
e
Com
munic
atio
ns
Co
rp.
Unila
va
Corp
ora
tion
Bro
adW
eb
Asia
Inc
.
1 Month
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
NeuL
ion
Inco
rpo
rate
d
Dolp
hin
Dig
ital
Me
dia
, In
c.
Mix
i, In
c.
Sp
ectr
um
DN
A,
Inc.
Gu
ngH
o O
nlin
e
En
tert
ain
ment,
Inc.
Ngi G
rou
p In
c.
Unila
va
Co
rpora
tion
Bro
adW
eb
Asia
Inc.
Corn
erW
orl
d
Corp
ora
tion
IAS
Ene
rgy
,
Inc
.
6 Month
-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Un
ilava
Co
rpora
tion
Ac
toz S
oft
Co
., L
td.
Cyb
erp
lex I
nc.
MO
KO
.mo
bi
Lim
ited
Mix
i, In
c.
Kiw
ibox.C
om
,
Inc.
Corn
erW
orld
Corp
ora
tion
En2G
o
Inte
rnatio
na
l,
Inc.
UO
MO
Me
dia
,
Inc
Bro
adW
eb
Asia
Inc
.1 Year
-120.0%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
Wiz
zard
Softw
are
Corp
ora
tion
Cyberp
lex Inc.
Spectr
um
DN
A,
Inc.
IAS
Energ
y,
Inc.
Corn
erW
orld
Corp
ora
tion
Sahara
Media
Hold
ings, In
c.
Beyond
Com
merc
e,
Inc.
En2G
o
Inte
rnatio
nal,
Inc.
UO
MO
Media
,
Inc
Bro
adW
ebA
sia
Inc.
Source: CapitalIQ
www.mackieresearch.com22
Capital Market Activity (Financing, M&A)
www.mackieresearch.com23
Financing Activity – Current MonthMonth Company Name Country Sector Acquisition Angel/Seed Debt financing Series A Series B Series C Series D NA Grand Total
Jun-10 Invite Media USA Analytics 70.0 70.0
FetchBack USA Advertising 40.0 40.0
HauteLook USA Internet Retail 31.0 31.0
Challenge Games USA Gaming 20.5 20.5
Marin Software USA Advertising 11.2 11.2
BookRenter USA Social Commerce 10.0 10.0
RockYou USA Widget 10.0 10.0
Transpera USA Mobile Ad 7.0 7.0
Kudzu Interactive USA Financial Services 7.0 7.0
Curse USA Social Networks 6.0 6.0
Metacafe USA Video 5.0 5.0
LucidMedia USA Advertising 4.5 4.5
Giiv USA Social Commerce 3.4 3.4
Trefis USA Analytics 3.2 3.2
Metamarkets USA Advertising 2.5 2.5
Snaptic USA Mobile 2.3 2.3
WOWIO USA Internet Retail 1.7 1.7
Dilithium Networks USA Video 1.5 1.5
Schoology USA Online Learning 1.3 1.3
SoGeo Netherlands Location-based SNS 0.8 0.8
Rummble UK Location-based SNS 0.8 0.8
Jun-10 Total 130.5 4.8 1.5 10.3 17.0 38.0 25.7 11.8 239.6
www.mackieresearch.com24
Financing Activity – Current Month, by Sector
Other
17%
Analytics
30%
Advertising
24%
Internet Retail
14%
Social
Commerce
6%Gaming
9%
$ Raised # Deals
Other
45%
Analytics
14%
Advertising
18%
Internet Retail
9%
Gaming
5%
Social
Commerce
9%
www.mackieresearch.com25
5.4
6.4
8.9
6.6
10.1
12.2
7.8
10.3
5.8
14.3
5.9 5.7
4.7
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1000.0
Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
(US
$m
)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
(US
$m
)
Total Average*Dec-09 includes $180m Zynga investment
Apr-10 includes $300m DST investment
Financing Activity
Strong start to June with ~40% of the roughly US$260 mm monthly total
deal value average already achieved
www.mackieresearch.com26
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Div
ers
ified
Gam
ing
Colla
bora
tion
Mobile
Media
Socia
l
Com
merc
eC
row
dsourc
ed
Conte
nt
Advert
isin
g
Vid
eo
Analy
tics
Inte
rnet R
eta
il
Socia
l
Netw
ork
sF
inancia
l
Serv
ices
Wid
get
Ente
rprise
Vert
ical
Com
muniti
es
Virtu
al W
orld
Infr
astr
uctu
re
Mobile
Paym
ent
Mobile
Ad
Onlin
e
Learn
ing
Music
Virtu
al G
oods
Aggre
gatio
n
Searc
h
Cla
ssifi
ed
Locatio
n-
based S
NS
Mic
roblo
g
Mic
rom
edia
Blo
g
Tra
vel
1 11 5 9 6 8 2 14 8 12 5 8 5 2 4 8 4 3 1 2 2 2 1 1 3 1 4 1 1 1 2
(US
$m
)
# companies
Capital Market Activity Ranking – by Sector, last three months
Gaming the biggest area of interest in the past quarter
www.mackieresearch.com27
Top 5 Sectors (2008-present)
$ Raised # Deals
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
Ja
n-0
8
Fe
b-0
8
Mar-
08
Ap
r-08
May-0
8
Ju
n-0
8
Jul-
08
Aug-0
8
Sep-0
8
Oc
t-08
No
v-0
8
Dec-0
8
Ja
n-0
9
Fe
b-0
9
Mar-
09
Ap
r-09
May-0
9
Ju
n-0
9
Jul-
09
Aug-0
9
Sep-0
9
Oc
t-09
No
v-0
9
Dec-0
9
Ja
n-1
0
Fe
b-1
0
Mar-
10
Ap
r-10
May-1
0
Ju
n-1
0
(US
$ m
m)
Social Networks Gaming Advertising Video Virtual World
0
5
10
15
20
25
30
Ja
n-0
8
Fe
b-0
8
Mar-
08
Ap
r-08
May-0
8
Ju
n-0
8
Jul-
08
Aug-0
8
Sep-0
8
Oc
t-08
No
v-0
8
Dec-0
8
Ja
n-0
9
Fe
b-0
9
Mar-
09
Ap
r-09
May-0
9
Ju
n-0
9
Jul-
09
Aug-0
9
Sep-0
9
Oc
t-09
No
v-0
9
Dec-0
9
Ja
n-1
0
Fe
b-1
0
Mar-
10
Ap
r-10
May-1
0
Ju
n-1
0
(# D
eals
)
Social Networks Advertising Gaming Virtual World Video
Top 5 sectors average $162 mm & 15 deals per month (aggregate)
www.mackieresearch.com28
Upcoming Events/Earnings
Source: CapitalIQ
Company Date Time Quarter Conf Call Details
NetDragon WebSoft, Inc. (SEHK:777) 11-Jun-10 8:00 AM (EST) Q1/10 1-866-770-7129
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Public Company ListingCompany Name Ticker Exchange
Trading
Currency HQ
Current
Price
US$ Market
Cap (mm) Employees
Accelerize New M edia, Inc. ACLZ OTCBB USD United States 1 15.6 10
Actoz Soft Co., Ltd. A052790 KOSE KRW South Korea 10,450 77.2 NA
AOL, Inc. AOL NYSE USD United States 21 2,199.5 6,700
AQ Interactive, Inc. 3838 TSE JPY Japan 167,000 98.9 NA
Asknet AG XTRA:A5A XTRA EUR Germany 3 19.9 NA
Beyond Commerce, Inc. BYOC OTCBB USD United States 0 6.6 16
Bright Things plc AIM :BGT AIM GBP United Kingdom 0 6.4 9
BroadWebAsia Inc. BWBA OTCPK USD United States 0 1.7 46
CDC Corp. CHIN.A NasdaqGS USD Hong Kong 2 229.1 NA
Changyou.com Limited CYOU NasdaqGS USD China 27 1,399.0 1,308
Chinese Gamer International GTSM :3083 GTSM TWD Taiwan 298 790.7 NA
CornerWorld Corporation CWRL OTCBB USD United States 0 1.9 16
Cyberplex Inc. TSX:CX TSX CAD Canada 1 35.8 NA
DADA SpA CM :DA CM EUR Italy 3 66.5 NA
Dena Co. Ltd. TSE:2432 TSE JPY Japan 2,856 4,436.5 NA
DigitalPost Interactive, Inc. DGLP OTCBB USD United States 0 6.9 6
DigitalTown, Inc. DGTW OTCBB USD United States 1 37.1 3
Dolphin Digital M edia, Inc. DPDM OTCBB USD United States 0 12.4 NA
En2Go International, Inc. ETGI OTCBB USD United States 0 4.8 NA
ePro Ltd. SEHK:8086 SEHK HKD Hong Kong 1 39.3 NA
Fluid M usic Canada, Inc. TSX:FM N TSX CAD United States 2 111.0 NA
Frogster Interactive P ictures AG FRG XTRA EUR Germany 16 48.6 NA
Gamania Digital Entertainment Co., Ltd. 6180 GTSM TWD Taiwan 54 263.1 NA
GameOn Co Ltd. 3812 TSE JPY Japan 79,600 86.4 NA
GeoSentric Oyj GEO1V HLSE EUR Finland 0 32.4 120
Giant Interactive Group, Inc. GA NYSE USD China 7 1,623.6 NA
GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2 121.6 NA
Glu M obile, Inc. GLUU NasdaqGM USD United States 1 38.3 479
Gravity Co., Ltd GRVY NasdaqGM USD South Korea 2 53.6 469
Gree, Inc. TSE:3632 TSE JPY Japan 6,820 3,361.0 NA
GungHo Online Entertainment, Inc. 3765 OSE JPY Japan 195,500 244.4 NA
HanbitSoft, Inc. A047080 KOSE KRW South Korea 3,920 71.5 NA
HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 97.8 276
Hutchison Telecommunications Hong Kong Holdings Ltd.SEHK:215 SEHK HKD Hong Kong 2 1,000.9 1,732
IAC/InterActiveCorp. IACI NasdaqGS USD United States 23 2,498.3 3,200
IAS Energy, Inc. IASC.A OTCPK USD Canada 0 3.5 NA
infoGROUP, Inc. IUSA NasdaqGS USD United States 8 458.5 3,146
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Public Company Listing cont.
Company Name Ticker Exchange
Trading
Currency HQ
Current
Price
US$ Market
Cap (mm) Employees
iseemedia Inc. IEE TSXV CAD Canada 0.11 7.3 79
Jumbuck Entertainment Limited ASX:JM B ASX AUD Australia 0.23 9.1 NA
Kent International Ho ldings Inc. KNTH OTCPK USD United States 1.95 6.9 2,735
Kingsoft Corporation Limited 3888 SEHK HKD China 4.27 597.6 6
Kiwibox.Com, Inc. KIWB OTCBB USD United States 0.01 5.0 NA
Lingo M edia Corporation TSXV:LM TSXV CAD Canada 0.51 14.2 65
LookSmart, Ltd. LOOK NasdaqGM USD United States 1.52 26.1 NA
M ixi, Inc. 2121 TSE JPY Japan 383,500.00 645.8 NA
M obile Data Corp. M BYL OTCBB USD United States 0.08 1.9 2,936
M odern Times Group M tg AB M TG B OM SEK Sweden 403.60 3,329.4 2
M oggle, Inc DB:M 0C DB EUR United States 0.85 47.7 NA
M OKO.mobi Limited M KB ASX AUD Australia 0.07 6.6 NA
M ultiplied M edia Corporation TSXV:M M C TSXV CAD Canada 0.12 27.3 405
M yriad Group AG M YRN SWX CHF Switzerland 4.30 179.9 NA
NEOWIZ Games Corporation A095660 KOSE KRW South Korea 40,000.00 702.3 2,901
NetDragon WebSoft, Inc. 777 SEHK HKD China 3.38 228.2 NA
Netease.com Inc. NTES NasdaqGS USD China 30.38 3,934.8 224
NeuLion Incorporated TSX:NLN TSX CAD Canada 0.43 47.7 NA
NeXplore Corporation NXPC OTCPK USD United States 0.37 20.6 NA
Ngi Group Inc. 2497 TSE JPY Japan 35,500.00 48.0 160
Northgate Technologies Limited 590057 BSE INR India 15.45 11.5 2,523
OAO RBC Information Systems RBCI M ICEX RUB Russia 39.10 168.0 3,700
Open Text Corp. OTEX NasdaqGS USD Canada 40.08 2,275.7 590
Openwave Systems Inc. OPWV NasdaqGS USD United States 2.00 167.7 NA
Oriented M edia Group Berhad OM EDIA KLSE M YR M alaysia 0.10 4.1 20
Paid Inc. PAYD OTCBB USD United States 0.26 70.5 NA
Perfect World Co., Ltd. PWRD NasdaqGS USD China 23.35 1,168.9 NA
Platfo rma M ediowa Point Group S.A. WSE:PGM WSE PLN Poland 1.63 48.5 91
PNI Digital M edia Inc. TSXV:PN TSXV CAD Canada 1.60 51.6 91
Points International Ltd. TSX:PTS TSX CAD Canada 0.52 74.0 71
Quepasa Corp. QPSA OTCBB USD United States 4.00 51.8 NA
Real Value Estates, Inc. RVLU OTCBB USD United States 1.03 6.6 1,754
RealNetworks Inc. RNWK NasdaqGS USD United States 3.27 442.3 6
Sahara M edia Holdings, Inc. SHHD OTCBB USD United States 0.40 13.9 230
Score M edia Inc. TSX:SCR TSX CAD Canada 0.86 66.4 NA
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Public Company Listing cont.
Company Name Ticker Exchange
Trading
Currency HQ
Current
Price
US$ Market
Cap (mm) Employees
SK Communications Co., Ltd. A066270 KOSE KRW South Korea 18,800.00 660.8 15
SNAP Interactive, Inc. STVI OTCBB USD United States 0.18 5.9 NA
Socialwise, Inc. SCLW OTCBB USD United States 0.52 26.0 3,997
Sohu.com Inc. SOHU NasdaqGS USD China 42.49 1,606.9 155
Spark Networks, Inc. LOV AM EX USD United States 3.56 73.3 8
SpectrumDNA, Inc. SPXA OTCBB USD United States 0.07 4.8 916
Taleo Corp. TLEO NasdaqGM USD United States 23.02 915.3 7,845
Tencent Holdings Ltd. 700 SEHK HKD China 146.90 34,512.6 7,665
The New York Times Company NYT NYSE USD United States 8.36 1,217.2 1,010
The9 Limited NCTY NasdaqGS USD China 4.21 107.4 274
TheStreet.com, Inc. TSCM NasdaqGM USD United States 2.86 90.2 28
TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.62 35.0 700
Tree.Com, Inc. TREE NasdaqGM USD United States 6.49 72.7 39
Unilava Corporation UNLA OTCBB USD United States 0.22 22.0 NA
Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.09 2.4 1,699
United Online, Inc. UNTD NasdaqGS USD United States 6.39 556.8 NA
UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.4 1,086
ValueClick, Inc. VCLK NasdaqGS USD United States 10.76 875.1 NA
Velti P lc VEL AIM GBP United Kingdom 4.64 252.8 2
VOIS, Inc. VOIS OTCBB USD United States 0.01 20.6 83
WebM ediaBrands Inc WEBM NasdaqGS USD United States 1.00 37.4 NA
Webzen Inc. KOSE:A069080 KOSE KRW South Korea 12,200.00 120.4 80
Wizzard Software Corporation WZE AM EX USD United States 0.20 13.2 1
Worlds.com Inc. WDDD OTCBB USD United States 0.12 6.9 NA
XING AG O1BC XTRA EUR Germany 29.29 181.5 NA
YD Online Corp. A052770 KOSE KRW South Korea 4,540.00 56.7 NA
Ynk Korea Inc. A023770 KOSE KRW South Korea 2,890.00 19.2 -
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Disclaimer
RELEVANT DISCLOSURES APPLICABLE TO: NONE
1. None applicable.
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Each 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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