Web 2.0 Weekly - May 4, 2010
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Web 2.0 Weekly - May 4, 2010

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April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number ...

April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals.

Deal round-up for April: The large deal highlights for the month include:

Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.
DST acquired ICQ, the instant messaging company, for $187.5 mm.
Warner Bros. acquired gaming company, Turbine, for $160 mm.
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.

Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.

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Web 2.0 Weekly - May 4, 2010 Presentation Transcript

  • 1. Web 2.0 Weekly “Apple+Siri=Mobile Search Madness” May 4, 2010 David Shore, CFA, MBA 416.860.6784 dshore@mackieresearch.com 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 Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved www.mackieresearch.com
  • 2. Key Developments (past week) Deals (M&A, Finance) – Apple Delves into Content, DST at It Again Siri (mobile personal assistant app developer) was acquired by Apple for a rumoured $225 mm – initiating a flurry of prognosticating over what this means for Apple – potentially building a mobile search business around its market leading mobile devices? DST, the Russian diversified Web and telecom concern, acquired instant messaging company, ICQ, for $187.5 mm. Tremor Media (online Hollywood media source) raised $40 mm in late-stage financing. Crowdsourced retail competitor to Groupon, LivingSocial, raised $14 mm – this following on the heels of Groupon’s $135 mm injection from DST. Financial Results/Guidance Open Text Corp. (NasdaqGS:OTEX) reported Q3/F10 revenue of $212.8 mm (vs. $192.0 mm in Q3/F09) and Adjusted EPS of $0.70 (vs. consensus: $0.74 and Q3/F09 of $0.59). Management noted its comfort with current Q4/F10 consensus estimates, which pegs Q4/F10 revenue expectations at $246-$278 mm. Sohu.com (NasdaqGS:SOHU) reported Q1/F10 revenue of $129.5 mm vs. $115.7 mm a year ago (+12% Y/Y), with $0.86/share non-GAAP EPS compared with $1.13/share in the same period last year. 2 www.mackieresearch.com
  • 3. Public Company Data 3 www.mackieresearch.com
  • 4. Aggregate Public Data Web 2.0 Public Companies Total Median Max Min # Companies 99 - - - Market Cap (US$ mm) 83,388.0 78.4 38,745.0 1.4 Revenue (US$ mm) 22,599.1 60.2 3,057.7 0.0 1 Year revenue growth 4.2% 857.0% -91.4% EBITDA as % of revenue - 13.4% 67.7% -75.0% Net cash (US$ mm) 8,523.1 1.8 1,754.4 -732.7 TEV/Revenue - 2.0x 46.4x 0.0x TEV/EBITDA - 9.0x 49.6x 0.1x P/E - 17.4x 96.9x 0.0x Relative to 52 week high -32.7% 1.9% -98.5% Source: CapitalIQ 4 www.mackieresearch.com
  • 5. 5 0 5 10 15 20 25 30 Gaming 27 Social Networking 16 Media 10 7 Diversified 6 Marketing 5 Mobile Source: CapitalIQ 3 Infrastructure 3 SMS/Voice 3 Enterprise 3 Advertising 2 Internet Retail 2 Virtual World By Sector 2 Dating 2 Music 1 Vertical Communities 1 Collaboration 1 Podcasting 1 Learning 1 Video 1 Search 1 Payment 1 Financial Services Public Company Distribution 0 5 10 15 20 25 30 35 40 45 United States Canada China South Korea Japan Taiwan Germany Australia United Kingdom Hong Kong Poland Russia By Country Finland Sweden Malaysia India Italy Switzerland Israel www.mackieresearch.com
  • 6. Valuation Dashboard – 1 Week Market Cap EV/Revenue Flat Flat 12% 3% Rising 24% Falling Rising 46% 51% Falling 64% EV/EBITDA P/E Flat Flat 2% 0% Falling 41% Falling Rising 47% 51% Rising 59% 6 www.mackieresearch.com
  • 7. 7 Source: CapitalIQ Multiple (x) 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x # companies 3/16/2009 3/23/2009 3/30/2009 4/6/2009 4/13/2009 4/20/2009 4/27/2009 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 6/22/2009 6/29/2009 Median EV/Revenue 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 Median 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 Long-term average 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 recovering, but 2/22/2010 below LT Average Revenue multiples 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 383738394039403940424344444645444647484949485253545858585963636362636367676767706969647170707471747476787777777979808280 www.mackieresearch.com
  • 8. 8 Source: CapitalIQ Multiple (x ) # companies 0. 0x 5. 0x 10. 0x 15. 0x 20. 0x 25. 0x 3/16/2009 3/23/2009 3/30/2009 4/6/2009 4/13/2009 4/20/2009 4/27/2009 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 Median EV/EBITDA 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 Median 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 Long-term average 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 below LT average 2/15/2010 remain depressed 2/22/2010 EV/EBITDA multiples 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 20 19 21 22 23 23 22 22 22 24 23 25 23 24 24 26 27 27 26 25 25 26 28 29 28 31 32 33 35 37 37 37 38 37 39 40 37 37 37 41 40 40 40 42 41 42 42 42 43 43 46 48 48 50 50 50 50 49 48 47 www.mackieresearch.com
  • 9. 9 Source: CapitalIQ Multiple (x ) # companies 0. 0x 5. 0x 10. 0x 15. 0x 20. 0x 25. 0x 30. 0x 3/16/2009 3/23/2009 3/30/2009 Median P/E 4/6/2009 4/13/2009 4/20/2009 4/27/2009 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 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 Median 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 Long-term average 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 below LT average P/E multiples also 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 17 19 19 18 18 19 18 19 18 20 20 19 18 19 19 20 21 22 25 24 24 25 26 27 26 29 30 30 28 32 31 30 34 35 37 37 36 37 37 37 39 36 37 37 38 36 36 35 31 31 31 33 33 34 33 33 34 33 32 34 www.mackieresearch.com
  • 10. 10 - 5.0 10.0 15.0 20.0 25.0 # Companies 2 Infrastructure 3 SMS/Voice 7 Social Networking 1 Vertical Communities 2 Music 5 Diversified 1 Learning 4 Mobile 6 Marketing Gaming 21 1 Search 1 Podcasting EV/Revenue 9 Media 3 Advertising 1 Collaboration 1 Video 2 Internet Retail 3 Enterprise 2 Dating 1 Financial Services 1 Virtual World - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Average Valuation – By Sector # Companies 2 Mobile 2 Enterprise 5 Diversified 6 Media 2 Internet Retail Gaming 14 5 Social Networking 1 Collaboration EV/EBITDA 1 Financial Services 3 Marketing 1 Dating 1 Advertising Vertical 0 Communities www.mackieresearch.com
  • 11. 11 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 30. 0 35. 0 40. 0 45. 0 50. 0 C yberplex Inc . As k net AG Ngi G roup Inc. J umbuck E ntertainment L imited Source: CapitalIQ T ree.C om, Inc . R ealNetwork s Inc . G ameO n C o L td. O penwav e S ys tems Inc. U nis erv e C ommunic ations C orp. Ac toz S oft C o. , L td. G igaMedia L td. G lu Mobile, Inc. Northgate T ec hnologies L imited DADA S pA AO L, Inc. P oints International L td. IAC /InterAc tiveC orp. 0.10.10.3 0.40.40.40.4 0.50.50.50.50.6 0.70.70.70.70.80.8 Internet G roup S A C DC C orp. T he New Y ork T imes C ompany U nited O nline, Inc. T heS treet. com, Inc. C ornerWorld C orporation AQ Interac tive, Inc . O AO R B C Information S y s tems infoG R O UP , Inc. EV/Revenue Ranking H anbitS oft, Inc. G amania Digital E ntertainment C o. , L td. Hutchis on T elec ommunications H ong K ong Y D O nline C orp. S park Network s , Inc . NetDragon WebS oft, Inc . Y nk K orea Inc. 0.80.90.90.91.0 1.2 1.2 1.3 1.3 1.4 1.4 1.5 1.5 1.5 1.7 1.7 V alueC lick , Inc . 1.8 S hutterfly, Inc . UO MO Media, Inc S core Media Inc . S NAP Interactiv e, Inc. XING AG P NI Digital Media Inc. V elti P lc Modern T imes G roup Mtg AB NeuL ion Incorporated O riented Media G roup B erhad S ohu. c om Inc . Webz en Inc. G ungH o O nline E ntertainment, Inc. Myriad G roup AG O pen T ex t C orp. 2.02.0 2.12.22.2 2.32.32.42.4 2.52.6 2.72.72.7 F rogs ter Interactiv e P ictures AG is eemedia Inc . Wiz z ard S oftware C orporation NE O WIZ G ames C orporation S K C ommunications C o. , L td. 3.0 3.23.2 3.43.4 4.0 T aleo C orp. Lingo Media C orporation revenue multiple at 46.4x SpectrumDNA has highest DigitalP os t Interac tive, Inc . C hangy ou.c om L imited 4.9 5.0 5.1 5.4 K ings oft C orporation L imited Acc eleriz e New Media, Inc . WebMediaB rands Inc 5.6 5.7 5.7 Unilava C orporation 6.3 Mix i, Inc . 7.5 G ree, Inc . F luid Mus ic C anada, Inc . 9.1 H U G HE S T elematic s , Inc. T rans G aming, Inc . 11.211.5 C hines e G amer International 13.6 B eyond C ommerce, Inc . 14.3 G eoS entric O yj 15.4 MO K O .mobi L imited 18.2 P aid Inc . 19.2 T encent H oldings L td. 23.3 B right T hings plc 27.8 S pectrumDNA, Inc. 46.4 www.mackieresearch.com
  • 12. 12 0.0 10.0 20.0 30.0 40.0 50.0 60.0 G ameO n C o L td. AO L , Inc . Source: CapitalIQ Ac toz S oft C o., L td. 1. 9 2.2 2. 4 United O nline, Inc . T he New Y ork T imes C ompany H utc his on T elec ommunications H ong K ong H oldings 4.5 5. 3 5.6 L td. V alueC lic k , Inc. S ohu.c om Inc. DADA S pA Y D O nline C orp. S park Network s , Inc. C DC C orp. 5. 9 6. 0 6. 6 6. 8 7.0 7. 2 infoG R O U P , Inc . EV/EBITDA Ranking G amania Digital E ntertainment C o., L td. C hangy ou.c om L imited XING AG NetDragon WebS oft, Inc. U nis erve C ommunic ations C orp. 7.5 7. 9 8.1 8. 1 8. 1 8. 9 P NI Digital Media Inc. T ree. C om, Inc. O pen T ex t C orp. IAC /InterAc tiveC orp. 9. 0 9.1 9. 7 9.8 V elti P lc G ungH o O nline E ntertainment, Inc . 11.1 12. 0 NE O WIZ G ames C orporation S c ore Media Inc. K ings oft C orporation L imited G ree, Inc. group at 49.6x S hutterfly , Inc. 12.6 12.9 12. 9 13.0 13. 7 Myriad Group leads the H anbitS oft, Inc . 14.5 Y nk K orea Inc . Modern T imes G roup Mtg AB 15. 9 16.6 O penwave S y s tems Inc . F rogs ter Interactive P ic tures AG 17. 5 18. 5 Mix i, Inc. 20. 9 C hines e G amer International 25. 2 T aleo C orp. 29.6 T heS treet.c om, Inc . 32. 4 T enc ent H oldings L td. 45.5 My riad G roup AG 49. 6 www.mackieresearch.com Excluding EV/EBITDA > 100x
  • 13. 13 0.0 20.0 40.0 60.0 80.0 100.0 120.0 Source: CapitalIQ J umbuck E ntertainment L imited 4.3 C y berplex Inc . 5.0 G igaMedia L td. 6.4 Y D O nline C orp. 8.2 P/E Ranking DADA S pA 9.7 U nited O nline, Inc. AO L , Inc. C hangy ou.c om L imited G ameO n C o L td. V alueC lick , Inc . 10.5 11.2 11.4 11.5 S ohu.c om Inc . 14.2 15. 4 T he New Y ork T imes C ompany Hutchis on T elec ommunic ations Hong K ong Holdings L td. K ings oft C orporation L imited C DC C orp. 17. 0 17. 7 18.6 18. 7 F rogs ter Interac tive P ic tures AG V elti P lc 21.3 22.7 G amania Digital E ntertainment C o., L td. NetDragon WebS oft, Inc . G ree, Inc . Actoz Soft has the 24.6 25.3 25. 8 highest P/E at 96.9x C hines e G amer International 32.5 NE O WIZ G ames C orporation 36. 9 O pen T ex t C orp. 42.4 Mix i, Inc . 55.9 T enc ent H oldings L td. 58.9 G ungH o O nline E ntertainment, Inc . 67.9 H anbitS oft, Inc. 76. 2 S hutterfly, Inc . 86.2 Ac toz S oft C o. , Ltd. 96. 9 www.mackieresearch.com
  • 14. 14 Source: CapitalIQ (U S $m) # companies - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 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 Total Market Capitalization - $80 BN 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 95 95 94 95 95 95 95 95 95 95 95 95 95 95 95 95 95 94 95 95 95 95 95 95 95 95 95 96 96 98 98 98 98 98 98 98 98 98 98 98 98 99 99 99 99 99 99 99 99 99 99 99 www.mackieresearch.com
  • 15. 15 - # Companies 5,000.0 10,000.0 15,000.0 20,000.0 25,000.0 30,000.0 35,000.0 40,000.0 45,000.0 50,000.0 7 Diversified Gaming 27 Media 10 Social Networking 16 1 Collaboration 6 Marketing 3 Enterprise 2 Internet Retail 1 Search 5 Mobile 3 Total Market Cap – By Sector SMS/Voice 1 Financial Services 2 Music 1 Video 2 Dating 2 Virtual World 3 Advertising over $17 bn in market cap 1 Vertical Communities 27 Gaming companies totaling 1 Payment 3 Infrastructure 1 Podcasting 1 Learning www.mackieresearch.com
  • 16. 16 0 1,000 2,000 3,000 4,000 5,000 6,000 UOMO Media, Inc BroadWebAsia Inc. CornerWorld Corporation Uniserve Communications Corp. Source: CapitalIQ Mobile Data Corp. Beyond Commerce, Inc. En2Go International, Inc. DigitalPost Interactive, Inc. Bright Things plc Kent International Holdings Inc. Worlds.com Inc. Real Value Estates, Inc. Oriented Media Group Berhad Kiwibox.Com, Inc. SpectrumDNA, Inc. Lingo Media Corporation iseemedia Inc. Sahara Media Holdings, Inc. SNAP Interactive, Inc. IAS Energy, Inc. MOKO.mobi Limited VOIS, Inc. Jumbuck Entertainment Limited Internet Group SA Northgate Technologies Limited Wizzard Software Corporation Accelerize New Media, Inc. Dolphin Digital Media, Inc. Ynk Korea Inc. Asknet AG NeXplore Corporation Socialwise, Inc. Market Cap Ranking LookSmart, Ltd. Cyberplex Inc. Multiplied Media Corporation TransGaming, Inc. Unilava Corporation WebMediaBrands Inc Glu Mobile, Inc. GeoSentric Oyj DigitalTown, Inc. Gravity Co., Ltd Frogster Interactive Pictures AG PNI Digital Media Inc. Quepasa Corp. Moggle, Inc Score Media Inc. Spark Networks, Inc. Ngi Group Inc. NeuLion Incorporated YD Online Corp. Points International Ltd. HanbitSoft, Inc. DADA SpA Paid Inc. Tree.Com, Inc. Fluid Music Canada, Inc. AQ Interactive, Inc. GameOn Co Ltd. Actoz Soft Co., Ltd. TheStreet.com, Inc. Webzen Inc. GigaMedia Ltd. The9 Limited Myriad Group AG XING AG Velti Plc Openwave Systems Inc. OAO RBC Information Systems Gamania Digital Entertainment CDC Corp. dominates group NetDragon WebSoft, Inc. HUGHES Telematics, Inc. GungHo Online Entertainment, infoGROUP, Inc. RealNetworks Inc. Tencent’s $39 bn market cap Shutterfly, Inc. SK Communications Co., Ltd. United Online, Inc. NEOWIZ Games Corporation ValueClick, Inc. Kingsoft Corporation Limited Mixi, Inc. Chinese Gamer International Taleo Corp. Hutchison Telecommunications The New York Times Company Changyou.com Limited Perfect World Co., Ltd. Giant Interactive Group, Inc. Sohu.com Inc. AOL, Inc. Open Text Corp. Gree, Inc. IAC/InterActiveCorp. Shanda Interactive Modern Times Group Mtg AB Netease.com Inc. Tencent Holdings Ltd. www.mackieresearch.com
  • 17. Price Performance – 1 week • Negative momentum with 62% of stocks falling or flat over past week Price Momentum (following on last week’s 61% decliner figure). Rising 28% Falling 62% Flat 10% 17 www.mackieresearch.com
  • 18. Average Price Performance – 1 Week, By Sector 30.0% 25.0% Infrastructure shows biggest gains 20.0% 17.0% 14.0% 13.7% 15.0% 12.4% 9.7% 10.0% 6.3% 3.9% 5.0% 0.0% -5.0% -1.8% -2.6% -2.8% -2.9% -4.1% -4.3% -4.7% -5.7% -6.0% -6.5% -6.5% -10.0% -7.7% -10.9% -15.0% -12.9%-13.2% -20.0% Internet Retail Infrastructure Virtual World Networking Collaboration Financial Payment Communities Advertising Learning Music Search Marketing Dating Diversified Gaming Mobile Podcasting Enterprise Services SMS/Voice Media Video Social Vertical # companies Source: CapitalIQ 18 www.mackieresearch.com
  • 19. 19 -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% BWBA IASC.A TSXV:USS VOIS AOL Source: CapitalIQ UOMO OPWV DPDM GLUU TSXV:LM OTEX NXPC FRG TSX:CX GRVY MYRN UNLA XTRA:A5A NYT TSE:3632 CHIN.A WSE:IGR NTES CM:DA AIM:BGT KIWB TSX:PTS SCLW SOHU WZE TREE A052790 MKB SFLY UNTD DB:M0C 3765 CYOU 590057 A052770 TSXV:TNG ACLZ NCTY TLEO GA TSCM PWRD Price Performance – 1 Week IACI A023770 GIGM ASX:JMB TSX:FMN O1BC HUTC 777 2121 RNWK A047080 KNTH IUSA MTG B RVLU SHHD ETGI CWRL DGTW GEO1V TSXV:PN 700 DGLP IEE 3888 3812 6180 KOSE:A069080 SNDA VEL GTSM:3083 PAYD RBCI LOV STVI VCLK A095660 SPXA TSXV:MMC OMEDIA 2497 TSX:SCR TSX:NLN BYOC A066270 WEBM SEHK:215 3838 QPSA WDDD LOOK MBYL www.mackieresearch.com
  • 20. 20 0% 20% 40% 60% 80% 100% 120% 140% 0% 500% 1000% 1500% 2000% 2500% 3000% OAO RBC Beyond Information Commerce, Inc. Systems Quepasa Corp. LookSmart, Ltd. Source: CapitalIQ SNAP DigitalTown, Inc. Interactive, Inc. SK AQ Interactive, Communications Inc. Co., Ltd. SK Communications Quepasa Corp. Co., Ltd. 6 Month 1 Month Uniserve Communications Glu Mobile, Inc. Corp. Oriented Media AQ Interactive, Group Berhad Inc. Ngi Group Inc. IAS Energy, Inc. Velti Plc GeoSentric Oyj Points Kiwibox.Com, International Ltd. Inc. Price Performance (Top 10) 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% 4000% 4500% 5000% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% 4000% OAO RBC OAO RBC Information Information Systems Systems Beyond Quepasa Corp. Commerce, Inc. TransGaming, Unilava Inc. Corporation AQ Interactive, IAS Energy, Inc. Inc. Fluid Music Ngi Group Canada, Inc. Inc. 1 Year 3 Month DigitalPost AQ Interactive, Interactive, Inc. Inc. Quepasa VOIS, Inc. Corp. Uniserve SNAP Communications Interactive, Corp. Inc. LookSmart, Velti Plc Ltd. Tencent Shutterfly, Holdings Ltd. Inc. www.mackieresearch.com
  • 21. 21 -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% -100.0% -90.0% -80.0% -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% Northgate Lingo Media Technologies Corporation Limited Lingo Media Source: CapitalIQ Glu Mobile, Inc. Corporation NeXplore Dolphin Digital Corporation Media, Inc. Openwave DADA SpA Systems Inc. Wizzard UOMO Media, Software Inc Corporation 1 Week 6 Month Cyberplex Inc. AOL, Inc. CornerWorld VOIS, Inc. Corporation En2Go Uniserve International, Communications Inc. Corp. UOMO Media, IAS Energy, Inc. Inc BroadWebAsia BroadWebAsia Inc. Inc. -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% Price Performance (Bottom 10) -120.0% -100.0% -80.0% -60.0% -40.0% -20.0% 0.0% Mobile Data DADA SpA Corp. Lingo Media SpectrumDNA, Corporation Inc. Wizzard Oriented Media Software Group Berhad Corporation Cyberplex Inc. Cyberplex Inc. CornerWorld iseemedia Inc. Corporation 1 Year 1 Month En2Go UOMO Media, International, Inc Inc. UOMO Media, Mobile Data Inc Corp. Sahara Media BroadWebAsia Holdings, Inc. Inc. Beyond En2Go Commerce, International, Inc. Inc. BroadWebAsia CornerWorld Inc. Corporation www.mackieresearch.com
  • 22. Capital Market Activity (Financing, M&A) 22 www.mackieresearch.com
  • 23. 23 (US$m) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Financing Momentum Oct-06 Dec-06 Total (LTM) Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Average Size (LTM) Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 transactions by large DST Aug-09 Sharp rise driven Oct-09 Dec-09 Feb-10 Apr-10 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 (US$m) www.mackieresearch.com
  • 24. Financing Activity – Current Month Month C om pany Nam e C ountr y S e ctor Ange l/S e e d De bt financ ing PIPE S e rie s A S e r ie s B S e r ie s C S e rie s D Gr and T otal Apr -10 Digital S k y T e c hnologie s R us s ia Divers if ied 300.0 300.0 Gr oupon US A S ocial Commerce 135.0 135.0 T r e m or Me dia US A V ideo 40.0 40. 0 V idyo US A V ideo 25.0 25. 0 L e ndingC lub US A Fina ncial S erv ices 24.5 24. 5 Mok aFive US A Enterpris e 21.0 21. 0 Diape r s .com US A Internet R etail 20.0 20. 0 Black Ar row US A A dv ertis ing 20.0 20. 0 Xobni US A S ocial Netw orks 16.2 16. 2 Zong US A Mobile Payment 15.0 15. 0 Box.ne t US A Colla bora tion 15.0 15. 0 Pr os pe r .c om US A Fina ncial S erv ices 14.6 14. 6 L ivingS oc ial US A S ocial Netw orks 14.0 14. 0 Kne w ton US A Online Lea rning 12.5 12. 5 Br ightc ove US A V ideo 12.0 12. 0 Edge C as t C DN US A Media 10.0 10. 0 T ynt Canada Inf ras tructure 8.0 8.0 PubMatic US A A dv ertis ing 7.5 7.5 Ove r tone US A A naly tic s 7.0 7.0 Mojiva US A Mobile A d 7.0 7.0 S e arc handis e C om m e r ce US A A dv ertis ing 7.0 7.0 Ope nS k y US A S ocial Commerce 6.0 6.0 S titc he r US A Media 6.0 6.0 C r am s te r US A V ertica l Communities 6.0 6.0 quirk y US A S ocial Netw orks 6.0 6.0 58.com China Cla s s if ied 5.8 5.8 Ne tw ork e d Ins ights US A A naly tic s 5.0 5.0 T um blr US A S ocial Netw orks 5.0 5.0 T e llApar t US A A naly tic s 4.8 4.8 Wildfir e US A A dv ertis ing 4.0 4.0 Daily Gr om m e t US A S ocial Commerce 3.4 3.4 gdgt US A V ertica l Communities 3.2 3.2 T w e e tPhoto US A Micromedia 2.6 2.6 As s is tly US A Enterpris e 2.2 2.2 T he Wrap.c om US A Media 2.0 2.0 Wibiya Is rael B log 2.0 2.0 Acade m ia.e du US A S ocial Netw orks 1.6 1.6 S pr e dfas t US A A naly tic s 1.6 1.6 Klout US A A naly tic s 1.5 1.5 Fr e s hPlane t US A G aming 1.5 1.5 DIYS EO US A S ea rc h 1.0 1.0 Ne arV e r s e US A Location-ba s ed S NS 1.0 1.0 Zoom S afe r US A Mobile 1.0 1.0 Kontage nt US A A naly tic s 1.0 1.0 As s ur e d L abor US A S ocial Netw orks 1.0 1.0 C ur re ns e e US A Fina ncial S erv ices 0.8 0.8 MyL ik e s US A A dv ertis ing 0.6 0.6 Plyce Fra nce Location-ba s ed S NS 0.4 0.4 Apr -10 T otal 5.0 20.0 300.0 47.2 56.8 312.7 66.6 808.2 24 www.mackieresearch.com
  • 25. Financing Activity – Current Month, By Sector # Deals $ Raised Travel Location-based 2% Diversified SNS 18% Music 3% Search 2% 2% Micromedia DiversifiedMobile Mobile Blog 2% Mobile AdClassified 2% 5% Collaboration 13% 2% 2% 3% 2% Gaming Infrastructure 6% 2% Vertical Communities Social Commerce 6% 5% Crowdsourced Online Learning Content 2% 2% Collaboration Mobile Payment Media 12% 2% 6% Internet Retail 2% Analytics Video 10% 8% Enterprise 3% Social Networks Widget 2% 10% Financial Services Other Advertising 5% 57% 8% 25 www.mackieresearch.com
  • 26. Financing Activity – Last Three Months 900.0 18.0 16.8 $508M ex-DST, averaging 800.0 $9.6M per deal 16.0 700.0 14.0 12.5 12.5 600.0 12.0 10.5 500.0 9.1 10.0 (US$m) (US$m) 8.9 8.2 400.0 8.0 6.4 5.8 300.0 5.5 5.5 5.4 6.0 4.6 200.0 4.0 100.0 2.0 0.0 0.0 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 *May-09 includes $200m FB investment Dec-09 includes $180m Zynga investment Total Average Apr-10 includes $300m DST investment 26 www.mackieresearch.com
  • 27. 27 (US$m) 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 # companies 1 Diversified 8 Mobile 9 Gaming Video 12 2 Collaboration 7 Media Crowdsourced 5 Content Social 4 Commerce Advertising 17 Social 13 Networks 8 Search Financial 8 Services 3 Internet Retail 8 Analytics 3 Mobile Ad 2 Widget Mobile 2 Payment 2 Enterprise 3 Music Vertical 7 Communities 2 Online Learning Location- 4 based SNS 3 Virtual World 2 Microblog Advertising has most deals in last 3 months 3 Infrastructure 3 Travel 1 SMS/Voice 2 Blog 1 Classified Online 1 Calendar 1 Micromedia Capital Market Activity Ranking – By Sector, Last Three Months 1 Online Dating 1 Aggregation www.mackieresearch.com
  • 28. Financing by Type (LTM) # Deals $ Raised Financing by T ype -L T M Financing by T ype - L T M (# deals ) S eries C (amount rais ed) 17.3% S eries E S eries D 4.7% 14. 8% A ngel/S eed S eries D 5. 4% 5. 6% Debt f inancing 1.3% S eries E 1. 0% PIPE 9. 7% S eries B 26. 5% A ngel/S eed S eries C 19. 8% 30. 9% S eries A 12. 1% Debt financing S eries A PIPE 2.8% 25. 4% 1. 5% S eries B 21. 1% 28 www.mackieresearch.com
  • 29. Financing by Geography (LTM) # Deals $ Raised Financing/M&A by Country - LTM (#) Financing/M&A by Country - LTM ($) UK 7.4% China Russia 3.9% 3.6% Canada 3.9% Israel Luxembourg 3.2% 23.8% Canada China 2.1% 3.0% UK ROW 2.8% 2.8% Israel 2.4% USA 80.3% ROW 7.5% USA 53.4% 29 www.mackieresearch.com
  • 30. Financing, By Type # Deals $ Raised Financing by Type Financing by Type (Number of Deals) (Amount raised) 120 1,000.0 900.0 880.0 100 98 95 6 800.0 161.0 9 87 704.3 7 700.0 679.6 78 80 3 618.1 94.2 70 587.9 40 600.0 227.3 7 Late Stage (D/E) 57.0 Late Stage (D/E) 42 (US$m) Mid-Stage (B/C) 183.9 488.2 Mid-Stage (B/C) 39 (#) 60 500.0 36 Early Stage (Angel/A) 450.4 Early Stage (Angel/A) 548.8 66.6 Total Total 76.5 400.0 43 401.0 3 342.2 42 2 38 268.8 40 301.3 407.6 35 3 33 32 300.0 19.0 3 30 301.1 29 28 18 2 2 24 230.8 27 - 2 2 13 24 24 24 205.0 201.2 207.4 210.1 219.5 219.1 202.1 369.5 23 2 52 193.7 184.6 313.4 15 12 17 1 12 200.0 10.3 179.9 47.0 10.0 166.6 4 44 20 2 191.1 161.0 31.0 32.0 52.5 18 3 9 41 48.2 27.0 19.8 133.1 20 13 2 39 12.0 - 20 2 9 111.7 15 99.8 13 14 10 74.6 208.2 123.8 111.5 125.8 163.4 118.4 9 21 23 22 100.0 100.0 110.0 184.5 82.6 121.2 170.2 17 18 18 19 16 15 80.2 133.1 123.3 12 13 91.2 7 7 7 8 8 74.4 79.2 76.6 60.5 6 45.6 47.7 54.6 39.0 17.5 54.3 55.5 46.3 48.2 52.2 28.8 - - Jan-09 Feb-09 Mar-09 Q1/09 May-09 Jun-09 Q2/09 Jul-09 Q3/09 Oct-09 Nov-09 Dec-09 Q4/09 Jan-10 Feb-10 Mar-10 Q1/10 Sep-09 Jan-09 Feb-09 Mar-09 Q1/09 Apr-09 May-09 Jun-09 Q2/09 Jul-09 Aug-09 Sep-09 Q3/09 Oct-09 Nov-09 Dec-09 Q4/09 Jan-10 Feb-10 Mar-10 Q1/10 Apr-10 Apr-09 Aug-09 Apr-10 30 www.mackieresearch.com
  • 31. Top 10 Deals (2010 YTD) Financings Acquisitions 350.0 250 225.0 300.0 300.0 200 187.5 250.0 160.0 200.0 150 142.0 150.0 135.0 100.0 100 100.0 80.0 50.0 44.0 40.0 50.0 27.5 25.0 25.0 25.0 24.5 50 36.5 33.0 0.0 25.0 0.0 Technologies LendingClub Yelp Quantcast LivingSocial Groupon Tremor Media Vidyo Ngmoco Paymo Digital Sky 0 Siri ICQ Turbine Jigsaw Ankeena Mochi Aardvark StudioNow Saf-T-Net LabPixies Networks Media DST involved in 2 largest financing deals YTD and 2nd largest acquisition 31 www.mackieresearch.com
  • 32. Upcoming Events/Earnings Company Date Time Quarter Conf Call Details Glu Mobile, Inc. (NasdaqGM:GLUU) 4-May-10 1:30 PM (PST) Q1/10 877-311-0653, #70056318 TheStreet.com, Inc. (NasdaqGM:TSCM) 5-May-10 4:30 PM (EST) Q1/10 866-770-7129, p/w 13839355 LookSmart, Ltd. (NasdaqGM:LOOK) 5-May-10 5:00 PM (EST) Q1/10 1-877-407-4018 United Online, Inc. (NasdaqGS:UNTD) 5-May-10 2:30 PM (PST) Q1/10 888-510-1783, #3384050 RealNetw orks Inc. (NasdaqGS:RNWK) 6-May-10 5:00 PM (EST) Q1/10 800-857-5305 CDC Corp. (NasdaqGS:CHIN.A) 11-May-10 9:00 AM (EST) Q1/10 888-603-6873, #68538655 Source: CapitalIQ 32 www.mackieresearch.com
  • 33. Public Company Listing T rading C urre nt US $ Mark e t C om pany Nam e T ic k e r Exchange C urr e ncy HQ Price C ap (m m ) Em ploye e s A ccelerize New M edia, Inc. A CLZ OTCB B USD United States 1 16.4 10 A cto z So ft Co ., Ltd. A 052790 KOSE KRW So uth Ko rea 13,800 108.8 NA A OL, Inc. A OL NYSE USD United States 22 2,325.5 6,700 A Q Interactive, Inc. 3838 TSE JP Y Japan 172,400 99.1 NA A sknet A G XTRA :A 5A XTRA EUR Germany 4 23.8 NA B eyo nd Co mmerce, Inc. B YOC OTCB B USD United States 0 4.8 NA B right Things plc A IM :B GT A IM GB P United Kingdo m 0 6.1 9 B ro adWebA sia Inc. B WB A OTCP K USD United States 0 1.7 46 CDC Co rp. CHIN.A NasdaqGS USD Ho ng Ko ng 3 278.2 NA Changyo u.co m Limited CYOU NasdaqGS USD China 33 1,678.5 1,308 Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 385 1,037.8 NA Co rnerWo rld Co rpo ratio n CWRL OTCB B USD United States 0 1.9 16 Cyberplex Inc. TSX:CX TSX CA D Canada 1 37.2 NA DA DA SpA CM :DA CM EUR Italy 4 87.8 NA DigitalP o st Interactive, Inc. DGLP OTCB B USD United States 0 5.2 NA DigitalTo wn, Inc. DGTW OTCB B USD United States 2 48.0 3 Do lphin Digital M edia, Inc. DP DM OTCB B USD United States 0 17.6 NA En2Go Internatio nal, Inc. ETGI OTCB B USD United States 0 4.8 NA Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 99.1 NA Fro gster Interactive P ictures A G FRG XTRA EUR Germany 18 60.8 NA Gamania Digital Entertainment Co ., Ltd. 61 80 GTSM TWD Taiwan 52 251 .5 NA GameOn Co Ltd. 381 2 TSE JP Y Japan 98,600 100.8 NA Geo Sentric Oyj GEO1 V HLSE EUR Finland 0 47.3 NA Giant Interactive Gro up, Inc. GA NYSE USD China 8 1,737.4 NA GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 3 162.5 751 Glu M o bile, Inc. GLUU NasdaqGM USD United States 1 44.0 479 Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 2 55.6 469 Gree, Inc. TSE:3632 TSE JP Y Japan 5,210 2,492.0 NA GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 282,300 342.6 NA HanbitSo ft, Inc. A 047080 KOSE KRW So uth Ko rea 4,230 82.9 NA HUGHES Telematics, Inc. HUTC OTCB B USD United States 3 295.3 276 Hutchiso n Teleco mmunicatio ns Ho ng Ko ng Ho ldings Ltd. SEHK:21 5 SEHK HKD Ho ng Ko ng 2 1,066.7 NA IA C/InterA ctiveCo rp. IA CI NasdaqGS USD United States 23 2,534.1 3,200 IA S Energy, Inc. IA SC.A OTCP K USD Canada 0 9.2 NA info GROUP , Inc. IUSA NasdaqGS USD United States 8 465.0 3,146 Internet Gro up SA WSE:IGR WSE P LN P o land 1 12.3 NA 33 www.mackieresearch.com
  • 34. Public Company Listing cont. T rading C urre nt US $ Mark e t C om pany Nam e T ick e r Exchange C urre ncy HQ Price C ap (m m ) Em ploye e s iseemedia Inc. IEE TSXV CA D Canada 0.1 2 8.3 79 Jumbuck Entertainment Limited A SX:JM B A SX A UD A ustralia 0.25 1 .1 1 NA Kent Internatio nal Ho ldings Inc. KNTH OTCP K USD United States 1.80 6.4 NA Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 6.26 878.1 NA Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0.01 6.9 NA Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0.59 7.3 65 Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1.59 27.3 NA M ixi, Inc. 2121 TSE JP Y Japan 601,000.00 982.6 NA M o bile Data Co rp. M B YL OTCB B USD United States 0.1 1 2.6 2,936 M o dern Times Gro up M tg A B M TG B OM SEK Sweden 450.1 0 4,073.0 2 M o ggle, Inc DB :M 0C DB EUR United States 14.1 70.2 NA M OKO.mo bi Limited M KB A SX A UD A ustralia 0.09 9.9 NA M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0.1 8 40.5 405 M yriad Gro up A G M YRN SWX CHF Switzerland 3.70 165.3 NA NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 40,150.00 757.3 2,901 NetDrago n WebSo ft, Inc. 777 SEHK HKD China 4.1 9 285.3 NA Netease.co m Inc. NTES NasdaqGS USD China 34.40 4,455.5 224 NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0.68 78.4 NA NeXplo re Co rpo ratio n NXP C OTCP K USD United States 0.44 24.5 NA Ngi Gro up Inc. 2497 TSE JP Y Japan 57,800.00 75.7 160 No rthgate Techno lo gies Limited 590057 B SE INR India 17.95 14.1 2,523 OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 46.08 21 2.3 3,41 1 Open Text Co rp. OTEX NasdaqGS USD Canada 41 .81 2,374.0 590 Openwave Systems Inc. OP WV NasdaqGS USD United States 2.31 193.5 NA Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0.1 7 6.9 20 P aid Inc. P A YD OTCB B USD United States 0.34 91 .4 NA P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 34.07 1,697.6 NA P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1.80 60.9 91 P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 0.56 82.8 71 Quepasa Co rp. QP SA OTCB B USD United States 5.39 69.9 NA Real Value Estates, Inc. RVLU OTCB B USD Israel 1.03 6.6 1,754 RealNetwo rks Inc. RNWK NasdaqGS USD United States 4.41 596.0 NA Sahara M edia Ho ldings, Inc. SHHD OTCB B USD United States 0.25 8.4 220 Sco re M edia Inc. TSX:SCR TSX CA D Canada 0.88 70.6 NA Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 45.25 3,043.3 51 9 Shutterfly, Inc. SFLY NasdaqGS USD United States 23.42 627.6 NA 34 www.mackieresearch.com
  • 35. Public Company Listing cont. T rading C urre nt US $ Mark e t C om pany Nam e T ick e r Exchange C urre nc y HQ Pric e C ap (m m ) Em ploye e s SK Co mmunicatio ns Co ., Ltd. A 066270 KOSE KRW So uth Ko rea 18,550.00 695.1 15 SNA P Interactive, Inc. STVI OTCB B USD United States 0.26 8.6 NA So cialwise, Inc. SCLW OTCB B USD United States 0.56 27.2 3,997 So hu.co m Inc. SOHU NasdaqGS USD China 48.49 1 .3 ,831 1 55 Spark Netwo rks, Inc. LOV A M EX USD United States 3.55 73.1 NA SpectrumDNA , Inc. SP XA OTCB B USD United States 0.1 0 6.9 91 6 Taleo Co rp. TLEO NasdaqGM USD United States 26.48 1,050.1 7,51 5 Tencent Ho ldings Ltd. 700 SEHK HKD China 164.40 38,745.0 7,665 The New Yo rk Times Co mpany NYT NYSE USD United States 1 7 0.1 1,480.2 NA The9 Limited NCTY NasdaqGS USD China 6.42 163.8 274 TheStreet.co m, Inc. TSCM NasdaqGM USD United States 3.80 1 9.9 1 28 TransGaming, Inc. TSXV:TNG TSXV CA D Canada 0.72 40.6 700 Tree.Co m, Inc. TREE NasdaqGM USD United States 8.63 95.0 39 Unilava Co rpo ratio n UNLA OTCB B USD United States 0.42 42.0 NA Uniserve Co mmunicatio ns Co rp. TSXV:USS TSXV CA D Canada 0.11 2.6 1,699 United Online, Inc. UNTD NasdaqGS USD United States 8.11 702.0 NA UOM O M edia, Inc UOM O OTCB B USD Canada 0.02 1.4 1,086 ValueClick, Inc. VCLK NasdaqGS USD United States 10.51 854.7 450 Velti P lc VEL A IM GB P United Kingdo m 3.38 193.2 2 VOIS, Inc. VOIS OTCB B USD United States 0.01 10.0 83 WebM ediaB rands Inc WEB M NasdaqGS USD United States 16 .1 43.5 NA Webzen Inc. KOSE:A 069080 KOSE KRW So uth Ko rea 1 50.00 2,1 128.8 80 Wizzard So ftware Co rpo ratio n WZE A M EX USD United States 0.24 15.6 NA Wo rlds.co m Inc. WDDD OTCB B USD United States 0.1 2 6.4 NA XING A G O1 C B XTRA EUR Germany 26.90 182.9 NA YD Online Co rp. A 052770 KOSE KRW So uth Ko rea 6,1 0.00 1 82.0 NA Ynk Ko rea Inc. A 023770 KOSE KRW So uth Ko rea 3,120.00 22.3 - 35 www.mackieresearch.com
  • 36. Disclaimer RELEVANT DISCLOSURES APPLICABLE TO: NONE 1. None applicable. ANALYST CERTIFICATION 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 or institutions 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). Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.218.6375 Regina 306.566.7550 St. Albert 780-460-6460 36 www.mackieresearch.com