NEW YORK, Aug. 27, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Stream Communications Network & Media Inc. (OTCBB:SCNWF) shows "lots of potential, similar to the U.S. cable industry, in its operations in Poland, said Investrend Research analyst Gary Vassalotti in a Focus Report.
Vassalloti said the company is one of the top ten cable system operators in Poland, a country where current cable penetration is estimated at 15% of households.
Vassalloti stated "that currently, about 43% of households have cable service, and only 15% have internet access. It is estimated after joining the EU the internet subscriptions will run about 50% of the population. This could be a major boon to Stream as Polish phone lines are generally not capable of carrying DSL signals."
According to Vassalloti, Stream's strategy is to find, purchase, and assimilate small cable operators into the company's system. Stream has been concentrating on the southern portion of the country and is the 8th or 9th largest cable operator in Poland.
Vassalloti believes that even with the relatively large size of Stream for its market, it has plenty of growth potential left. The Polish cable industry is made up of over 501 small cable operators, although this number is down from a previous high of over 1,001 small operations. The regulatory environment in Poland currently favors Stream's purchasing strategy. Poland does not have an anti-trust department.
Vassalloti concludes that since there is not much of an operating history, predicting trends from the underlying data is not possible. He goes on to state that the negative cash flow and negative working capital are strong negatives for this company. "Investors, therefore, should be very wary when deciding to invest in Stream at this time."
The full report, including important disclosures and disclaimers, available at http://www.investrendresearch.com, and at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.
The analyst's credentials are at http://www.investrend.com/articles/secondlevel.asp?level=238
Stream Communications Network and Media, Inc is enrolled in Investrend Research's pioneering professional research program, which facilitates independent analysts to provide financial coverage for shareholders in companies that otherwise, would have little or no analyst following. Enrollment fees for Focus coverage is $3,950 and the fees were paid by the company. Analysts are paid in advance of initial reports by Investrend Research to eliminate pecuniary interest, and neither the analyst nor anyone associated with Investrend Research may own or trade in the stocks of a company under coverage.
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