web 2.0 weekly - aug. 10, 2010: "consolidation by google"

www.mackieresearch.com

Web 2.0 Weekly

“Consolidation by Google”

Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved

August 10, 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) – Consolidation by Google

� Google confirmed or announced two acquisitions during the week, including Jambool ($70 mm) involved in virtual goods monetization processes, and widget market, Slide($182 mm).

� In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer, Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.

� The largest financing (aside from the aforementioned M&A activity) involved “the Chinese Youtube,” Tudou, raising $50 mm in Series E funds.

Financial Results/Guidance/Partnerships/Product� Geo-location search app maker, Multiplied Media (TSXV:MMC), made two product and

distribution announcements – (1) the gasoline station search function on Poynt (the company’s GPS location-based search app) was extended to the iPhone and iPod Touch versions, and (2) the company (through subsidiary, UnoMobi) extended its email-to-SMS service for legacy phones to over 20 million Globe Telecom subscribers in the Philippines.


Public Company Data


Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min# Companies 102 - - -

Market Cap (US$ mm) 86,452.0 49.4 36,187.5 0.0

Revenue (US$ mm) 28,694.2 43.9 6,877.0 0.0

1 Year revenue growth 1.9% 8961.6% -100.0%

EBITDA as % of revenue - 8.8% 63.2% -99.5%

Net cash (US$ mm) 17,385.8 2.9 6,672.5 -670.2

TEV/Revenue - 1.7x 37.6x 0.1x

TEV/EBITDA - 8.5x 38.4x 0.4x

P/E - 16.5x 92.6x 0.0x

Relative to 52 week high -41.4% -1.0% -93.5%

Source: CapitalIQ


Public Company Distribution

By Sector By Country

Source: CapitalIQ

28

16

109

65

3 3 3 32 2 2 2

1 1 1 1 1 1 1 1

0

5

10

15

20

25

30

Gam

ing

Socia

l N

etw

ork

ing

Media

Div

ers

ifie

d

Mobile

Mark

eting

Infr

astr

uctu

re

SM

S/V

oic

e

Ente

rprise

Advert

isin

g

Inte

rnet

Reta

il

Virtu

al W

orld

Dating

Music

Vert

ical C

om

munitie

s

Searc

h

Podcasting

Learn

ing

Vid

eo

Colla

bora

tion

Paym

ent

Fin

ancia

l S

erv

ices

0

5

10

15

20

25

30

35

40

45

United S

tate

s

Canada

Chin

a

South

Kore

a

Japan

Taiw

an

Hong K

ong

Germ

any

Pola

nd

Austr

alia

United K

ingdom

Italy

Fin

land

Sw

eden

India

Russia

Mala

ysia

Sw

itzerland


Valuation Dashboard – 1 Week

Rising

56%

Falling

33%

Flat

11%

Rising

39%

Falling

57%

Flat

4%

Rising

52%

Falling

48%

Flat

0%

Market Cap

Rising

48%Falling

52%

Flat

0%

EV/Revenue

EV/EBITDA P/E


Median EV/Revenue

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x6

/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

6/1

4/2

01

06

/21

/20

10

6/2

8/2

01

07

/5/2

01

07

/12

/20

10

7/1

9/2

01

07

/26

/20

10

8/2

/20

10

8/9

/20

10

383940394040404244454546464647495151515054565661616164666667646566707071707369706672727075747777787980797980798382828484

Mu

ltip

le (

x)

Median Long-term average

# companies

Source: CapitalIQ

Revenue multiples down slightly, still

well below LT average


Median EV/EBITDA

0. 0x

5. 0x

10. 0x

15. 0x

20. 0x

25. 0x

30. 0x

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

4/26/2010

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

6/28/2010

7/5/2010

7/12/2010

7/19/2010

7/26/2010

8/2/2010

8/9/2010

20 21 22 22 2121 2223 2224 22 23 2425 26 26 25 2424 2627 30 29 3234 3437 40 37 3838 3840 4238 38 40 4241 4042 41 41 4243 44 43 44 4749 4851 51 50 4948 4746 4849

Multiple (x)


# companies

Source: CapitalIQ

EV/EBITDA multiples up this week, still below LT average


Median P/E

0. 0x

5. 0x

10. 0x

15. 0x

20. 0x

25. 0x

30. 0x

35. 0x

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

4/26/2010

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

6/28/2010

7/5/2010

7/12/2010

7/19/2010

7/26/2010

8/2/2010

8/9/2010

19 18 18 19 1819 1920 2018 18 19 1919 20 23 24 2423 2525 28 26 3030 3132 33 33 3335 3739 3838 39 39 4041 3739 39 40 3737 35 33 33 3235 3536 35 35 3536 3235 3434

Multiple (x)


# companies

Source: CapitalIQ

P/E multiples tick up (for 3rd week) but still below

LT average


Average EV/Revenue – by Sector

32.4

9.4 8.97.9

5.0 4.7 4.2 3.8 3.7 3.63.0 2.8 2.5 2.5 2.3 2.1 1.9 1.7 1.5 1.4

0.5

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0V

irtu

al W

orld

Socia

l N

etw

ork

ing

Infr

astr

uctu

re

Learn

ing

Mobile

Music

Div

ers

ifie

d

Mark

eting

Gam

ing

Searc

h

Vert

ical C

om

munitie

s

Podcasting

Colla

bora

tion

SM

S/V

oic

e

Media

Advert

isin

g

Inte

rnet

Reta

il

Ente

rprise

Dating

Vid

eo

Fin

ancia

l S

erv

ices

2 9 2 1 4 2 6 5 21 1 1 1 1 3 9 3 2 3 2 1 1# Companies


Average EV/EBITDA – by Sector

38.4

16.8

14.813.2

12.3 11.8 11.29.9

9.1

7.0 6.8

4.3

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Searc

h

Ente

rprise

Mobile

Div

ers

ifie

d

Media

Gam

ing

Inte

rnet

Reta

il

Socia

l N

etw

ork

ing

Colla

bora

tion

Mark

eting

Dating

Advert

isin

g

1 2 3 5 6 13 2 6 1 2 1 1# Companies


Average P/E – by Sector

92.6

54.6

39.937.6

23.020.6

16.0 15.013.3

7.4

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Internet

Retail

Enterprise Collaboration Diversified Social

Networking

Marketing Media Advertising Gaming Virtual World

2 3 1 9 16 5 10 3 28 2# Companies


38

3232

19

17 17

1514

10 10 99 8 8

7

5 5 5 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Accredited Members Holding Corporation

Worlds.com Inc.

SocialGO PLC

Tencent Holdings Ltd.

MOKO.mobi Limited

SpectrumDNA, Inc.

GeoSentric Oyj

Paid Inc.

Beyond Commerce, Inc.

Gree, Inc.

Chinese Gamer International

DigitalPost Interactive, Inc.

TransGaming, Inc.

Lingo Media Corporation

Mood Media Corporation

Accelerize New Media, Inc.

Dena Co. Ltd.

HUGHES Telematics, Inc.

Frogster Interactive Pictures AG

Changyou.com Limited

Mixi, Inc.

Taleo Corp.

SK Communications Co., Ltd.

Kingsoft Corporation Limited

WebMediaBrands Inc

Wizzard Software Corporation

Motricity, Inc.

Sohu.com Inc.

Open Text Corp.

Modern Times Group Mtg AB

ePro Ltd.

Velti Plc

XING AG

NEOWIZ Games Corporation

Myriad Group AG

Score Media Inc.

PNI Digital Media Inc.

UOMO Media, Inc

Shutterfly, Inc.

Platforma Mediowa Point Group S.A.

HanbitSoft, Inc.

ValueClick, Inc.

Hutchison Telecommunications Hong Kong Holdings Ltd.

GungHo Online Entertainment, Inc.

SNAP Interactive, Inc.

NeuLion Incorporated

Spark Networks, Inc.

iseemedia Inc.

Unilava Corporation

Gamania Digital Entertainment Co., Ltd.

YD Online Corp.

NetDragon WebSoft, Inc.

Ynk Korea Inc.

Webzen Inc.

OAO RBC Information Systems

AQ Interactive, Inc.

Oriented Media Group Berhad

Internet Group SA

TheStreet.com, Inc.

Points International Ltd.

IAC/InterActiveCorp.

Northgate Technologies Limited

The New York Times Company

AOL, Inc.

DADA SpA

Uniserve Communications Corp.

United Online, Inc.

CDC Corp.

Glu Mobile, Inc.

Tree.Com, Inc.

GigaMedia Ltd.

Cyberplex Inc.

Actoz Soft Co., Ltd.

Openwave Systems Inc.

Jumbuck Entertainment Limited

RealNetworks Inc.

Asknet AG

GameOn Co Ltd.

LookSmart, Ltd.

Thwapr, Inc.

EV/Revenue Ranking

Source: CapitalIQ

Accredited Members Holding Co. has highest revenue multiple at 38x


38.437.536.4

32.0

28.226.7

20.018.4

16.716.616.114.614.5

12.6

10.0 9.8 9.6 9.6 9.1 9.0 8.6 8.5 8.3 7.8 7.8 7.6 7.5 7.3 7.3 6.8 6.7 6.7 6.5 6.2 6.1 5.54.4 4.3 3.7

2.41.6

0.6 0.4 0.00.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

SK Communications Co., Ltd.

HanbitSoft, Inc.


TheStreet.com, Inc.

Taleo Corp.


Myriad Group AG


Mixi, Inc.

Gree, Inc.

Modern Times Group Mtg AB

Shutterfly, Inc.

AQ Interactive, Inc.

Score Media Inc.

IAC/InterActiveCorp.

YD Online Corp.

Dena Co. Ltd.

Openwave Systems Inc.

Open Text Corp.

DADA SpA

Velti Plc

XING AG


PNI Digital Media Inc.




GungHo Online Entertainment, Inc.


Spark Networks, Inc.



LookSmart, Ltd.

Sohu.com Inc.

ValueClick, Inc.

CDC Corp.


Cyberplex Inc.

United Online, Inc.

AOL, Inc.

Actoz Soft Co., Ltd.


GameOn Co Ltd.

Thwapr, Inc.

EV/EBITDA Ranking

Excluding EV/EBITDA > 100xSource: CapitalIQ

SK Communications leads the group at 38.4x


97.2 96.3

62.8

56.3

47.4 47.0

40.2

33.5 33.530.3 30.2

25.9 24.620.7 20.6

17.0 17.0 16.5 15.1 14.9 14.3 13.810.8 9.9 9.1 8.2 7.7

5.1 3.5 2.7 2.0 1.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

ePro Ltd.

Shutterfly, Inc.

Points International Ltd.

Mixi, Inc.


CDC Corp.

Open Text Corp.

Gree, Inc.





Velti Plc

Dena Co. Ltd.



DADA SpA


ValueClick, Inc.

Sohu.com Inc.

Cyberplex Inc.


AOL, Inc.


United Online, Inc.

GameOn Co Ltd.

Ngi Group Inc.



Netease.com Inc.

Shanda Interactive Entertainment Ltd.

Giant Interactive Group, Inc.

P/E Ranking

Source: CapitalIQ

ePro has the highest P/E at 97.2x


Total Market Capitalization

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

4/26/2010

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

6/28/2010

7/5/2010

7/12/2010

7/19/2010

7/26/2010

96 96 96 96 96 96 96 96 96 96 97 97 97 97 97 97 97 98 98 98 98 98 98 98 98 98 98 98 98 99100100100100100100100100100100100100101101101101102102102101102102

(US$m)

# companies

Source: CapitalIQ

Total market cap at $86.5 bn with 103 companies

now represented in our Web 2.0

index


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

Mobile

Colla

bora

tion

Ente

rprise

Mark

eting

Inte

rnet

Reta

il

Searc

h

SM

S/V

oic

e

Fin

ancia

l S

erv

ices

Dating

Music

Advert

isin

g

Virtu

al W

orld

Vid

eo

Vert

ical C

om

munitie

s

Paym

ent

Podcasting

Infr

astr

uctu

re

Learn

ing

9 28 10 16 6 1 3 5 2 1 3 1 2 2 3 2 1 1 1 1 3 1# Companies

Nine Diversified companies totaling $40 bn in market cap


Market Cap Ranking

0

1,000

2,000

3,000

4,000

5,000

6,000

Tencent H

old

ings L

td.

Fro

gste

r In

tera

ctiv

e P

ictu

res A

GN

ete

ase.c

om

Inc.

Dena C

o. Ltd

.IA

C/Inte

rActiv

eC

orp

.S

handa Inte

ractiv

e E

nte

rtain

ment Ltd

.A

OL, In

c.

Open T

ext C

orp

.G

eoS

entr

ic O

yj

Sohu.c

om

Inc.

Gia

nt In

tera

ctiv

e G

roup, In

c.

Changyou.c

om

Lim

ited

Perf

ect W

orld C

o., L

td.

The N

ew

York

Tim

es C

om

pany

GungH

o O

nlin

e E

nte

rtain

ment, Inc.

Tale

o C

orp

.V

alu

eC

lick, In

c.

Chin

ese G

am

er

Inte

rnatio

nal

NE

OW

IZ G

am

es C

orp

ora

tion

Shutterf

ly, In

c.

SK

Com

munic

atio

ns C

o., L

td.

Unite

d O

nlin

e, In

c.

RealN

etw

ork

s Inc.

Hutc

his

on T

ele

com

munic

atio

ns H

ong

Motr

icity

, In

c.

Velti

Plc

NetD

ragon W

ebS

oft, In

c.

Gre

e, In

c.

Myriad G

roup A

GC

DC

Corp

.G

am

ania

Dig

ital E

nte

rtain

ment C

o., L

td.

XIN

G A

GM

OK

O.m

obi L

imite

dO

AO

RB

C Info

rmatio

n S

yste

ms

Openw

ave S

yste

ms Inc.

The9 L

imite

dG

igaM

edia

Ltd

.A

Q Inte

ractiv

e, In

c.

Poin

ts Inte

rnatio

nal L

td.

Webzen Inc.

TheS

treet.com

, In

c.

DA

DA

SpA

Thw

apr,

Inc.

Paid

Inc.

Acto

z S

oft C

o., L

td.

Tre

e.C

om

, In

c.

Score

Media

Inc.

HU

GH

ES

Tele

matic

s, In

c.

Spark

Netw

ork

s, In

c.

Mood M

edia

Corp

ora

tion

Pla

tform

a M

edio

wa P

oin

t G

roup S

.A.

PN

I D

igita

l Media

Inc.

NeuLio

n Incorp

ora

ted

YD

Onlin

e C

orp

.C

yberp

lex Inc.

Ngi G

roup Inc.

Quepasa C

orp

.G

ravity

Co., L

tdT

ransG

am

ing, In

c.

Glu

Mobile

, In

c.

Dig

italT

ow

n, In

c.

eP

ro L

td.

WebM

edia

Bra

nds Inc

LookS

mart

, Ltd

.M

ulti

plie

d M

edia

Corp

ora

tion

Socia

lwis

e, In

c.

Asknet A

GA

ccre

dite

d M

em

bers

Hold

ing

Ynk K

ore

a Inc.

Yip

py, In

c.

NeX

plo

re C

orp

ora

tion

Accele

rize N

ew

Media

, In

c.

Nort

hgate

Technolo

gie

s L

imite

dM

oggle

, In

cW

izzard

Softw

are

Corp

ora

tion

iseem

edia

Inc.

Dolp

hin

Dig

ital M

edia

, In

c.

En2G

o Inte

rnatio

nal,

Inc.

VO

IS, In

c.

Dig

italP

ost In

tera

ctiv

e, In

c.

Socia

lGO

PLC

Kent In

tern

atio

nal H

old

ings Inc.

SN

AP

Inte

ractiv

e, In

c.

Unila

va C

orp

ora

tion

Jum

buck E

nte

rtain

ment Lim

ited

Modern

Tim

es G

roup M

tg A

BW

orlds.c

om

Inc.

Beyond C

om

merc

e, In

c.

IAS

Energ

y, In

c.

Spectr

um

DN

A, In

c.

Unis

erv

e C

om

munic

atio

ns C

orp

.K

iwib

ox.C

om

, In

c.

Oriente

d M

edia

Gro

up B

erh

ad

Mobile

Data

Corp

.In

tern

et G

roup S

AU

OM

O M

edia

, In

cLiv

eW

orld Inc.

Lin

go M

edia

Corp

ora

tion

Kin

gsoft C

orp

ora

tion L

imite

dG

am

eO

n C

o L

td.

HanbitS

oft, In

c.

Source: CapitalIQ

Tencent’s $36.2 bn market cap dominates group


Price Performance – 1 Week

Price Momentum• Distinctly negative price momentum,

with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).

• The market has generally seen more decliners than risers over the past two months with an average of two to three down weeks per up week.

Rising

35%

Flat

16%

Falling

49%


Average Price Performance – 1 Week, by Sector

22.9%

19.7%

15.3%13.2%

9.2%

4.4%

0.8% 0.4% 0.0% 0.0%

-0.4% -0.9% -0.9% -1.1% -1.1% -1.6%-2.7% -3.1%

-4.4%

-7.3% -7.8%-9.9%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Vir

tua

l W

orl

d

Div

ers

ifie

d

Ma

rke

tin

g

Infr

astr

uctu

re

Po

dca

stin

g

Pa

ym

en

t

So

cia

l

Ne

two

rkin

g

Me

dia

Se

arc

h

Da

tin

g

Ga

min

g

Co

lla

bo

ratio

n

Mo

bile

Mu

sic

En

terp

rise

Fin

an

cia

l

Se

rvic

es

Ve

rtic

al

Co

mm

un

itie

s

Inte

rne

t R

eta

il

Vid

eo

Ad

ve

rtis

ing

Le

arn

ing

SM

S/V

oic

e

Source: CapitalIQ

Virtual World sector shows highest weekly returns


Price Performance – 1 Week

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

YIP

IK

IWB

WS

E:IG

RU

NL

AU

NT

DA

CL

ZIE

EO

ME

DIA

OP

WV

QP

SA

RN

WK

TS

XV

:MM

CT

SX

V:L

MT

SE

:36

32

21

21

61

80

KO

SE

:A0

69

08

0N

YT

VC

LK

SE

HK

:80

86

GL

UU

SF

LY

TS

CM

GIG

M3

88

8T

SX

:NL

NG

TS

M:3

08

3M

OT

R3

76

5A

02

37

70

77

73

81

2W

EB

MT

SX

:MM

CH

IN.A

CM

:DA

TR

EE

TS

XV

:TN

GT

SX

:PT

ST

SX

V:P

NA

04

70

80

CY

OU

TS

E:2

43

2M

TG

BO

TE

X2

49

7O

1B

C

LO

OK

GA

LO

VD

PD

MD

B:M

0C

SP

XA

ST

VI

KN

TH

TS

X:S

CR

A0

66

27

0A

SX

:JM

BT

SX

V:U

SS

GE

O1

VU

OM

OW

SE

:PG

MD

GT

WA

CC

MN

XP

CH

UT

CT

LE

ON

CT

YIA

SC

.AIA

CI

A0

52

77

0A

05

27

90

70

0A

09

56

60

NT

ES

38

38

DG

LP

FR

GT

SX

:CX

XT

RA

:A5

AS

ND

AS

CL

WG

RV

YR

BC

IP

WR

DS

OH

UA

OL

VO

ISM

YR

NW

ZE

BY

OC

AIM

:SG

OV

EL

TH

WI

MK

BS

EH

K:2

15

59

00

57

WD

DD

PA

YD

LV

WD

MB

YL

ET

GI

Source: CapitalIQ


Price Performance (Top 10)

1 Month

0%

50%

100%

150%

200%

250%

300%

En

2G

o

Inte

rna

tion

al,

Inc.

Mo

bile

Da

ta C

orp

.

Ge

oS

en

tric

Oyj

MO

KO

.mo

bi

Lim

ited

Th

e9

Lim

ite

d

So

hu

.co

m I

nc.

Hu

tch

iso

n

Te

leco

mm

un

ica

tio

n

s H

on

g K

on

g

Ho

ldin

gs

Ltd

.

Ne

tea

se

.co

m I

nc.

SN

AP

In

tera

ctiv

e,

Inc.

Tra

nsG

am

ing

, In

c.

3 Month

0%20%40%60%80%

100%120%140%160%

Mobile

Data

Corp

.

En2G

o I

nte

rnational,

Inc. V

elti P

lc

Fro

gste

r In

tera

ctive

Pic

ture

s A

G

Hutc

his

on

Tele

com

munic

ations

Hong K

ong H

old

ings

Ltd

.

Myriad G

roup A

G

Nete

ase.c

om

Inc.

Gre

e,

Inc.

HanbitS

oft

, In

c.

IAC

/Inte

rActiveC

orp

.

6 Month

0%

20%

40%

60%

80%

100%

120%

eP

ro L

td.

Beyond C

om

merc

e,

Inc.

Hutc

his

on

Tele

com

munic

ations

Hong K

ong H

old

ings

Ltd

.

AQ

Inte

ractive,

Inc.

LookS

mart

, Ltd

.

Velti P

lc

Gre

e,

Inc.

SK

Com

munic

ations

Co.,

Ltd

.

Fro

gste

r In

tera

ctive

Pic

ture

s A

G

Poin

ts I

nte

rnational

Ltd

.1 Year

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

OA

O R

BC

Info

rma

tion

Syst

em

s

eP

ro L

td.

Yip

py,

In

c.

AQ

In

tera

ctiv

e,

Inc. Ve

lti P

lc

Qu

ep

asa

Co

rp.

Un

ise

rve

Co

mm

un

ica

tion

s

Co

rp.

De

na

Co

. L

td.

Tra

nsG

am

ing

,

Inc.

Sco

re M

ed

ia I

nc.

Source: CapitalIQ


Price Performance (Bottom 10)

1 Week

-40.0%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

Quep

asa

Corp

.

Openw

ave

Sy

ste

ms Inc

.

ise

em

edia

Inc

.

Oriente

d

Media

Gro

up

Berh

ad

Ac

cele

riz

e

New

Me

dia

,

Inc.

Unite

d O

nlin

e,

Inc

.

Unila

va

Corp

ora

tion

Inte

rnet

Gro

up

SA

Kiw

ibox.C

om

,

Inc

.

Yip

py,

Inc

.

1 Month

-80.0%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

Kiw

ibox.C

om

,

Inc.

UO

MO

Media

,

Inc

HU

GH

ES

Tele

ma

tics

,

Inc

.

Liv

eW

orld

Inc

.

Unila

va

Corp

ora

tion

Beyo

nd

Co

mm

erc

e,

Inc

.

Sp

ectr

um

DN

A,

Inc.

ise

em

edia

Inc

.

VO

IS,

Inc

.

Yip

py,

Inc

.

6 Month

-80.0%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

UO

MO

Media

,

Inc

Dolp

hin

Dig

ital

Med

ia, In

c.

En2

Go

Inte

rnatio

nal,

Inc.

isee

media

Inc

.

Lin

go M

edia

Corp

ora

tion

Kiw

ibox

.Com

,

Inc.

VO

IS, In

c.

Unila

va

Corp

ora

tion

Sp

ectr

um

DN

A,

Inc

.

Yip

py,

Inc.

1 Year

-100.0%-90.0%-80.0%-70.0%-60.0%-50.0%-40.0%-30.0%-20.0%-10.0%

0.0%

Wiz

zard

Softw

are

Corp

ora

tion

Inte

rnet G

roup

SA

NeuLio

n

Incorp

ora

ted

Cyberp

lex Inc.

Moggle

, In

c

Dolp

hin

Dig

ital

Media

, In

c.

IAS

Energ

y,

Inc.

Spectr

um

DN

A,

Inc.

Beyond

Com

merc

e,

Inc.

UO

MO

Media

,

Inc

Source: CapitalIQ


Capital Market Activity (Financing, M&A)


Capital Market Activity – Current Month

Transactions - Current Month (US$ m)Fin. Amount (Million) Type of financing

Month Company Name Country S ector Acquis ition Angel/S eed Series A S eries B S eries C Series D S eries E NA Grand Total

Aug-10 S lide US A W idget 182.0 182.0

Tuenti S pain S ocia l Networks 99.0 99.0

J ambool US A V irtua l G oods 70.0 70.0

Tudou China V ideo 50. 0 50.0

Investopedia US A Media 42.0 42.0

Unoh J apan Gaming 29.0 29.0

AdMeld Inc . US A Advertis ing 15.0 15.0

eXelate US A Advertis ing 15.0 15.0

YouSendIt US A Collaboration 15.0 15.0

Payfone US A Mobile P ayment 11.0 11.0

UltiZen China G aming 8.0 8. 0

Redbeacon US A C las s ified 7. 4 7. 4

zulily US A S ocia l C ommerce 6. 0 6. 0

My Damn Channel US A Media 4. 4 4. 4

WeShop US A S ocia l C ommerce 4. 3 4. 3

PlayON! S ports US A V ideo 2. 8 2. 8

SupersonicAds UK Advertis ing 2. 0 2. 0

S tatusNet C anada Microblog 1. 3 1. 3

Rapportive US A S ocia l Networks 1.0 1. 0

BringMeTheNews US A Aggregation 1.0 1. 0

Embed.ly US A W idget 0. 3 0. 3

Aug-10 Total 422.0 1.0 15.2 39.2 23.0 15.0 50.0 1.0 566.4


Capital Market Activity – Current Month, by Sector

Other

56%

Widget

23%

Social

Networks

12%

Virtual Goods

9%

$ Raised # Deals

Other

50%

Widget

20%

Social

Networks

20%

Virtual Goods

10%


8.3

6.5

9.6

12.1

7.2

10.1

5.6

13.4

5.5

8.1

16.7

9.0

6.3

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1000.0

Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

(US

$m

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

(US

$m

)

Total Average per Deal LTM Total Average*Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment

Jun-10 includes $147m Zynga investment

Financing Activity

A return to trend level financing activity after a

record July


0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

Gam

ing

Advert

isin

g

Searc

h

Div

ers

ified

Media

Wid

get

Socia

l Com

merc

e

Socia

l Netw

ork

s

Analy

tics

Ente

rprise

Virtu

al G

oods

Inte

rnet R

eta

il

Vid

eo

Colla

bora

tion

Blo

g

Mobile

Music

Locatio

n-b

ased S

NS

Infr

astr

uctu

re

SM

S/V

oic

e

Com

ment/R

eputa

tion

Mobile

Ad

Vis

ual C

om

merc

e

Mobile

Paym

ent

Fin

ancia

l Serv

ices

Virtu

al W

orld

Aggre

gatio

n

Vert

ical C

om

muniti

es

Cla

ssifi

ed

Onlin

e A

uctio

n

Tra

vel

Publis

hin

g

Mic

roblo

g

17 27 4 1 9 4 12 12 11 5 2 5 5 3 1 7 1 4 4 2 4 2 1 1 2 1 4 3 1 1 2 1 1

(US

$m

)

# companies

Capital Market Activity Ranking – by Sector, last three months

Gaming overtakes Advertising as the

biggest area of interest in the past three months

(17 deals, $1,142 mm)


Top 5 Sectors (2008-present)

$ Raised # Deals

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Jan-0

8

Feb-0

8

Mar-

08

Apr-

08

May-0

8

Jun-0

8

Jul-08

Aug-0

8

Sep-0

8

Oct-

08

Nov-0

8

Dec-0

8

Jan-0

9

Feb-0

9

Mar-

09

Apr-

09

May-0

9

Jun-0

9

Jul-09

Aug-0

9

Sep-0

9

Oct-

09

Nov-0

9

Dec-0

9

Jan-1

0

Feb-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

(US

$ m

m)

Social Networks Gaming Advertising Video Diversified

0

5

10

15

20

25

30

Jan-0

8

Feb-0

8

Mar-

08

Apr-

08

May-0

8

Jun-0

8

Jul-08

Aug-0

8

Sep-0

8

Oct-

08

Nov-0

8

Dec-0

8

Jan-0

9

Feb-0

9

Mar-

09

Apr-

09

May-0

9

Jun-0

9

Jul-09

Aug-0

9

Sep-0

9

Oct-

09

Nov-0

9

Dec-0

9

Jan-1

0

Feb-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

(# D

eals

)

Advertising Social Networks Gaming Virtual World Video

75% of financing comes from Top 5 sectorsTop 5 sectors average $175 mm & 16 deals per month (aggregate)


Top 10 (2010 YTD)

Financing Acquisitions

688.0

250.0

135.0

60.0 50.0 50.0 50.0 44.0 40.0 38.5

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Dig

ita

l S

ky

Te

ch

no

log

ies

Zyn

ga

Gro

up

on

Atla

ssia

n

Tu

do

u

Qiy

i

Gla

m M

ed

ia

Liv

ing

So

cia

l

Tre

mo

r M

ed

ia

Sq

ua

resp

ace

763.0

700.0

644.9

225.0

187.5 182.0161.5 160.0

142.0126.5

0

100

200

300

400

500

600

700

800

900

Pla

yd

om

ITA

So

ftw

are

info

GR

OU

P

Sir

i

ICQ

Slid

e

Exa

lea

d

Tu

rbin

e

Jig

sa

w

Allo

y

DST soars to top with almost $700 million in financing this year


Upcoming Events/Earnings

Source: CapitalIQ

Earnings CalendarCompany Date / Time Quarter Conf Call Details

Giant Interactive Group, Inc. (NYSE:GA) Aug-10, 2010 9:00 PM Q2/10 866-356-3093

CDC Corp. (NasdaqGS:CHIN.A) Aug-10, 2010 8:30 PM Q2/10 888-603-6873, passcode: 91985167

Points International Ltd. (TSX:PTS) Aug-10, 2010 5:00 PM Q2/10 877-941-8418

XING AG (XTRA:O1BC) Aug-11, 2010 4:00 AM Q2/10 49-0-6103-485-3002

Tencent Holdings Ltd. (SEHK:700) Aug-11, 2010 8:00 AM Q2/10 866-369-4113

PNI Digital Media Inc. (TSXV:PN) Aug-11, 2010 4:30 PM Q3/10 888-300-8196, passcode: 88463806

WebMediaBrands Inc (NasdaqGS:WEBM) Aug-11, 2010 5:00 PM Q2/10 866-288-9872, passcode: 713481

Spark Netw orks, Inc. (AMEX:LOV) Aug-12, 2010 4:30 PM Q2/10 888-215-6895, passcode: 4394412

Cyberplex Inc. (TSX:CX) Aug-12, 2010 4:30 PM Q2/10 888-892-3255

Perfect World Co., Ltd. (NasdaqGS:PWRD) Aug-17, 2010 7:00 AM Q2/10 866-519-4004, passcode: PWRD

Open Text Corp. (NasdaqGS:OTEX) Aug-18-2010 5:00 PM Q4/10 416-644-3414

NetDragon WebSoft, Inc. (SEHK:777) Aug-19-2010 8:00 AM Q2/10 866-831-5605, passcode: 34088977

Netease.com Inc. (NasdaqGS:NTES) Aug-19-2010 9:00 PM Q2/10 877-941-2068

The9 Limited (NasdaqGS:NCTY) Aug-24-2010 9:00 PM Q2/10 866-788-0538, passcode: 37936166

GigaMedia Ltd. (NasdaqGS:GIGM) Aug-26-2010 7:30 AM Q2/10 http://w w w .gigamedia.com


Public Company Listing

Company Name Ticker Exchange

Trading

Currency HQ

Current

Pr ice

US$ Market

Cap (mm) Employees

Accelerize New M edia, Inc. ACLZ OTCBB USD United States 0.48 15.0 10

Accredited M embers Holding Corporation ACCM OTCBB USD United States 0.65 19.0 8

Actoz Soft Co., Ltd. A052790 KOSE KRW South Korea 9,990 76.5 NA

AOL, Inc. AOL NYSE USD United States 22.61 2,413.5 6,700

AQ Interactive, Inc. 3838 TSE JPY Japan 163,400 103.8 NA

Asknet AG XTRA:A5A XTRA EUR Germany 3.17 21.2 NA

Beyond Commerce, Inc. BYOC OTCBB USD United States 0.06 4.0 16

CDC Corp. CHIN.A NasdaqGS USD Hong Kong 1.98 209.1 2,810

Changyou.com Limited CYOU NasdaqGS USD China 29.36 1,514.0 1,308

Chinese Gamer International GTSM :3083 GTSM TWD Taiwan 272.50 739.3 NA

Cyberplex Inc. TSX:CX TSX CAD Canada 0.64 45.3 NA

DADA SpA CM :DA CM EUR Italy 4.17 89.4 NA

Dena Co. Ltd. TSE:2432 TSE JPY Japan 2,389 3,965.6 NA

DigitalPost Interactive, Inc. DGLP OTCBB USD United States 0.05 8.2 6

DigitalTown, Inc. DGTW OTCBB USD United States 1.15 32.1 4

Dolphin Digital M edia, Inc. DPDM OTCBB USD United States 0.15 9.3 NA

En2Go International, Inc. ETGI OTCBB USD United States 0.38 9.1 NA

ePro Ltd. SEHK:8086 SEHK HKD Hong Kong 0.68 29.4 707

Frogster Interactive P ictures AG FRG XTRA EUR Germany 25.50 10,138.4 NA

Gamania Digital Entertainment Co., Ltd. 6180 GTSM TWD Taiwan 48.25 201.4 NA

GameOn Co Ltd. 3812 TSE JPY Japan 66,000 0.3 NA

GeoSentric Oyj GEO1V HLSE EUR Finland 0.03 2,033.2 130

Giant Interactive Group, Inc. GA NYSE USD China 6.76 1,535.8 1,575

GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2.04 112.9 NA

Glu M obile, Inc. GLUU NasdaqGM USD United States 1.19 36.7 479

Gravity Co., Ltd GRVY NasdaqGM USD South Korea 1.57 43.6 455

Gree, Inc. TSE:3632 TSE JPY Japan 6,580 237.4 NA

GungHo Online Entertainment, Inc. 3765 OSE JPY Japan 177,500 1,231.3 NA

HanbitSoft, Inc. A047080 KOSE KRW South Korea 4,820 0.1 NA

HUGHES Telematics, Inc. HUTC OTCBB USD United States 2.00 68.3 276

Hutchison Telecommunications Hong Kong Holdings Ltd.SEHK:215 SEHK HKD Hong Kong 2.20 338.4 1,732

IAC/InterActiveCorp. IACI NasdaqGS USD United States 25.11 2,626.4 3,200

IAS Energy, Inc. IASC.A OTCPK USD Canada 0.05 3.5 NA

Internet Group SA WSE:IGR WSE PLN Poland 0.72 1.7 NA

iseemedia Inc. IEE TSXV CAD Canada 0.07 9.5 NA

Jumbuck Entertainment Limited ASX:JM B ASX AUD Australia 0.20 6.2 79

Kent International Ho ldings Inc. KNTH OTCPK USD United States 1.90 6.8 NA


Public Company Listing cont.

Company Name Ticke r Exchange

Trading

Currency HQ

Current

Price

US$ Market

Cap (mm ) Employees

Kingsoft Corporation Limited 3888 SEHK HKD China 4.38 0.4 2,735

Kiwibox.Com, Inc. KIWB OTCBB USD United States 0.01 3.0 6

Lingo M edia Corporation TSXV:LM TSXV CAD Canada 0.42 0.9 NA

LiveWorld Inc. LVWD OTCPK USD United States 0.03 0.9 NA

LookSmart, Ltd. LOOK NasdaqGM USD United States 1.53 26.3 65

M ixi, Inc. 2121 TSE JPY Japan 447,500 0.0 NA

M obile Data Corp. M BYL OTCBB USD United States 0.10 2.3 NA

M odern Times Group M tg AB M TG B OM SEK Sweden 459.50 5.6 2,936

M oggle, Inc DB:M 0C DB EUR United States 0.85 13.5 2

M OKO.mobi Limited M KB ASX AUD Australia 0.09 170.0 NA

M ood M edia Corporation TSX:M M TSX CAD Canada 1.76 63.6 NA

M otricity, Inc. M OTR NasdaqGM USD United States 7.87 315.2 353

M ultiplied M edia Corporation TSXV:M M C TSXV CAD Canada 0.10 25.9 NA

M yriad Group AG M YRN SWX CHF Switzerland 4.97 230.6 778

NEOWIZ Games Corporation A095660 KOSE KRW South Korea 37,600 683.8 NA

NetDragon WebSoft, Inc. 777 SEHK HKD China 3.66 248.1 2,901

Netease.com Inc. NTES NasdaqGS USD China 39.60 5,142.2 4,624

NeuLion Incorporated TSX:NLN TSX CAD Canada 0.43 48.9 224

NeXplore Corporation NXPC OTCPK USD United States 0.30 16.7 NA

Ngi Group Inc. 2497 TSE JPY Japan 31,050 45.1 NA

Northgate Techno logies Limited 590057 BSE INR India 18.60 14.0 NA

OAO RBC Information Systems RBCI M ICEX RUB Russia 36.00 162.8 2,523

Open Text Corp. OTEX NasdaqGS USD Canada 39.36 2,234.9 3,700

Openwave Systems Inc. OPWV NasdaqGS USD United States 1.82 152.6 NA

Oriented M edia Group Berhad OM EDIA KLSE M YR M alaysia 0.07 3.0 NA

Paid Inc. PAYD OTCBB USD United States 0.29 79.0 20

Perfect World Co., Ltd. PWRD NasdaqGS USD China 26.01 1,314.8 2,896

Platfo rma M ediowa Point Group S.A. WSE:PGM WSE PLN Poland 1.44 49.8 NA

PNI Digital M edia Inc. TSXV:PN TSXV CAD Canada 1.48 49.4 NA

Points International Ltd. TSX:PTS TSX CAD Canada 0.68 99.2 93

Quepasa Corp. QPSA OTCBB USD United States 3.45 44.7 71

RealNetworks Inc. RNWK NasdaqGS USD United States 2.88 389.5 1,754

Score M edia Inc. TSX:SCR TSX CAD Canada 0.91 72.1 230

Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 42.66 2,533.1 5,721

Shutterfly, Inc. SFLY NasdaqGS USD United States 23.97 653.7 519

SK Communications Co., Ltd. A066270 KOSE KRW South Korea 17,900 636.0 NA


Public Company Listing cont.

Company Name Ticker Exchange

Trading

Currency HQ

Current

Price

US$ Market

Cap (mm) Employees

SNAP Interactive, Inc. STVI OTCBB USD United States 0.20 6.6 15

SocialGO PLC AIM :SGO AIM GBP United Kingdom 0.01 7.2 9

Socialwise, Inc. SCLW OTCBB USD United States 0.47 23.5 NA

Sohu.com Inc. SOHU NasdaqGS USD China 50.56 1,912.8 3,997

Spark Networks, Inc. LOV AM EX USD United States 3.25 66.9 155

SpectrumDNA, Inc. SPXA OTCBB USD United States 0.05 3.5 8

Taleo Corp. TLEO NasdaqGM USD United States 25.62 1,018.7 916

Tencent Holdings Ltd. 700 SEHK HKD China 153.70 36,187.5 7,845

The New York Times Company NYT NYSE USD United States 8.71 1,270.7 7,665

The9 Limited NCTY NasdaqGS USD China 5.42 138.3 1,010

TheStreet.com, Inc. TSCM NasdaqGM USD United States 2.94 93.0 274

Thwapr, Inc. THWI OTCBB USD United States 5.00 82.9 NA

TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.64 37.1 28

Tree.Com, Inc. TREE NasdaqGM USD United States 6.81 73.8 700

Unilava Corporation UNLA OTCBB USD United States 0.06 6.2 40

Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.11 3.1 NA

United Online, Inc. UNTD NasdaqGS USD United States 5.50 480.0 1,699

UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.3 NA

ValueClick, Inc. VCLK NasdaqGS USD United States 10.60 862.0 1,086

Velti P lc VEL AIM GBP United Kingdom 4.70 281.2 459

VOIS, Inc. VOIS OTCBB USD United States 0.00 8.2 2

WebM ediaBrands Inc WEBM NasdaqGS USD United States 0.71 26.6 83

Webzen Inc. KOSE:A069080 KOSE KRW South Korea 9,400.00 96.1 326

Wizzard Software Corporation WZE AM EX USD United States 0.20 13.2 80

Worlds.com Inc. WDDD OTCBB USD United States 0.09 5.0 1

XING AG O1BC XTRA EUR Germany 28.80 196.7 293

YD Online Corp. A052770 KOSE KRW South Korea 3,590.00 46.5 NA

Yippy, Inc. YIPI OTCBB USD United States 0.80 18.2 NA

Ynk Korea Inc. A023770 KOSE KRW South Korea 2,700.00 18.6 NA

YouBlast Global, Inc. YBLT OTCBB USD United States 0.39 13.4 6


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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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