The Play Of The Day
08:13 AM EST 09-07-99
Good Morning Stock Fans!
Today's Play of The Day is: ACTV (NASDAQ:IATV)
The commercialization of ACTV's (NASDAQ:IATV) interactive technologies will reach the market this year. ACTV's "Individualized Television" and "Individualized Advertising" technology is stated to be downlinked by TV Guide, Inc. (NASDAQ) on October 15th. After a period of testing, ACTV will launch an enhanced sports channel in The Fox Sports Southwest market. TV Guide Interactive will begin targeted advertising on its programming guide portal which serves 2.3 million digital subscribers and the Liberty Media/ACTV joint venture can offer Individualized TV enhanced pay-per-view national events, to 4.0 million digital subscribers. Comparatively, Wink's technology is only offered through 40,000 advanced analog set top converters with additional activation in several markets scheduled for mid-2000. Broad availability must wait for next generation digital set top boxes to be deployed.
Additionally, Viacom's (NYSE:VIA) The Box Music Channel with over 20 million subscribers will launch jointly with ACTV a synchronized Hyper-TV(TM) Internet site in this year's fourth quarter. Liberate Technologies has developed platform software featuring the delivery of Internet content to "information appliances" including the TV set top. Although Liberate generated $17.3MM in FY 1999 revenues, commercial deployment is currently limited to smaller European cable operators.
Wink Communications (NASDAQ:WINK) offers a "back end" solution while ACTV is a complimentary "front end" content oriented technology. Further, ACTV's upcoming commercial launches will reach a far larger audience than that reached by others. Yet ACTV's market capitalization of $490MM is at a significant discount when compared with Wink's $1.2B. versus its industry peers. With that in mind it looks very much like (NASDAQ:IATV) is considerably undervalued to the like of recent IPO (NASDAQ:WINK). With that in mind (NASDAQ:IATV) is what many invesotors would see currently as "cheap" in price. However on the contary (NASDAQ:IATV) future returns into the end of 1999 look to be anything but cheap!
Looking at how (NASDAQ:IATV) has traded of late a number of investors have already noticed what a bargain shares of (NASDAQ:IATV) are currently as investors pushed up shares of (NASDAQ:IATV) last Friday, September 3, 1999 on volume of 554,000 over 62,000 more then it 30 day average.
With the increase in shares of (NASDAQ:IATV) this past Friday, September 3, 1999 I am looking for (NASDAQ:IATV) to open today a little bit higher then its close of $12.43750 as it trades up with the rest of the market. However then I see (NASDAQ:IATV) pulling back into a perfect area to purchase today. The technology that (NASDAQ:IATV) is bringing to the public in October 1999 is the type of technology that has the ability to double the current value of (NASDAQ:IATV) over the next 2 months or so.
Buy Area: $11.8750- $12.1250
Sell Stop: $10.93750
TARGET: $ 20.00 plus (2 months)
LOOK SMART (NASDAQ:LOOK)
I have watched and traded shares of LOOK SMART (NASDAQ:LOOK) since it went public on 08-19-99. I have also seen the news that (NASDAQ:LOOK) has been ranked 7 out of 10 in it ranking of all Web Directories. Stock Fans! With such a new public issue being featured as a top Web Property already you can bet that when (NASDAQ:LOOK) "Quiet Period" ends in the next 10 to 15 days or so there will be significant coverage by Wall Streets top Brokers. With that in mind I am looking for even a bigger run up on shares of (NASDAQ:LOOK) over the next 10-15 trading days. Stayed tunes on this one as I continue to gather more information to back up this BONUS PLAY even more.
Buy Area: $25.1250-$26.8750
Sell Stop: $22.3750
TARGET: $35.00 Plus (3 weeks)
STOCKS TO WATCH:
One of my many DIE-HARD Stock Fans! was watching this one last Friday, September 3 ,1999 as it exploded up over $4.00 to a new high on NO NEWS. I will join him today and alert of you that this one could have more in store as its VOLUME was over 4 times greater on the move.
LIVE TRADING ROOM UPDATE:
Stock Fans! I was busy buying up shares of Mortgage.com (NASDAQ:MDCM) and US Interactive (NASDAQ:USIT) all last week. Today as many of you told me you were following my lead we all look to be rewarded as their "quiet periods" have ended and the stocks now as of today will begin enjoying upgrades.
Have a great day!
More to come...