Web 2.0 Weekly - May 18, 2010 "What recession? Online luxury heats up"

www.mackieresearch.com

Web 2.0 Weekly

“What Recession? Online Luxury Heats Up”

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

May 18, 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) – Online Luxury – Hot Sector in a Poorer World Booyah (virtual world operator) raised $20 mm in Series C financing. Social media brand and charity promoter, SocialVibe, raised an $11.7 mm financing

round. Activity in the online luxury retail space headed up this week with Brandsclub (Brazilian

luxury flash retailer) in a $17 mm funding and Gilt Groupe raising $35 mm.

Financial Results/Guidance Fluid Music (TSX:FMN, digital music distributor) reported Q1/F10 revenue of $15.9 mm

(vs. $1.3 mm in the same period last year) and EPS of ($0.06) vs. ($0.03) in Q1/F09. Points International (TSX:PTS, rewards program manager) reported strong revenue

growth – up 11% Y/Y to $23.5 mm, and break-even EPS. Excluding contribution last year from a discontinued relationship with a major customer (Delta Airlines), revenue growth was 205% Y/Y.


Public Company Data


Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min# Companies 100 - - -Market Cap (US$ mm) 82,162.9 67.9 36,142.4 1.2Revenue (US$ mm) 23,048.3 59.8 3,057.7 0.01 Year revenue growth 5.3% 857.0% -91.4%EBITDA as % of revenue - 13.4% 67.7% -75.0%Net cash (US$ mm) 9,044.1 2.1 1,827.7 -670.8TEV/Revenue - 1.9x 41.8x 0.1xTEV/EBITDA - 8.4x 36.6x 0.8xP/E - 16.0x 83.4x 0.0xRelative to 52 week high -37.8% 0.0% -97.6%

Source: CapitalIQ


Public Company Distribution

27

17

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

Gam

ing

Soc

ial N

etw

orki

ng

Med

ia

Div

ersi

fied

Mar

ketin

g

Mob

ile

Infra

stru

ctur

e

SM

S/V

oice

Ent

erpr

ise

Adv

ertis

ing

Inte

rnet

Ret

ail

Virt

ual W

orld

Dat

ing

Mus

ic

Ver

tical

Com

mun

ities

Col

labo

ratio

n

Pod

cast

ing

Lear

ning

Vid

eo

Sea

rch

Pay

men

t

Fina

ncia

l Ser

vice

s

By Sector By Country

0

5

10

15

20

25

30

35

40

45

Uni

ted

Sta

tes

Can

ada

Chi

na

Sou

th K

orea

Japa

n

Taiw

an

Ger

man

y

Aus

tralia

Uni

ted

Kin

gdom

Hon

g K

ong

Pol

and

Rus

sia

Finl

and

Sw

eden

Mal

aysi

a

Indi

a

Italy

Sw

itzer

land

Isra

el

Source: CapitalIQ


Valuation Dashboard – 1 Week

Rising36%

Falling59%

Flat5% Rising

29%

Falling68%

Flat3%

Rising21%

Falling77%

Flat2%

Market Cap

Rising34%

Falling66%

Flat0%

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

5.0x

3/30

/200

94/

6/20

094/

13/2

009

4/20

/200

94/

27/2

009

5/4/

2009

5/11

/200

95/

18/2

009

5/25

/200

96/

1/20

096/

8/20

096/

15/2

009

6/22

/200

96/

29/2

009

7/6/

2009

7/13

/200

97/

20/2

009

7/27

/200

98/

3/20

098/

10/2

009

8/17

/200

98/

24/2

009

8/31

/200

99/

7/20

099/

14/2

009

9/21

/200

99/

28/2

009

10/5

/200

910

/12/

2009

10/1

9/20

0910

/26/

2009

11/2

/200

911

/9/2

009

11/1

6/20

0911

/23/

2009

11/3

0/20

0912

/7/2

009

12/1

4/20

0912

/21/

2009

12/2

8/20

091/

4/20

101/

11/2

010

1/18

/201

01/

25/2

010

2/1/

2010

2/8/

2010

2/15

/201

02/

22/2

010

3/1/

2010

3/8/

2010

3/15

/201

03/

22/2

010

3/29

/201

04/

5/20

104/

12/2

010

4/19

/201

04/

26/2

010

5/3/

2010

5/10

/201

05/

17/2

010

373638383939393841414344444545454648494949485154545859596264646562626467687069726968677072707574757879787977788080848181

Mul

tiple

(x)

Median Long-term average

# companies

Source: CapitalIQ

Revenue multiples down second

consecutive week


Median EV/EBITDA

0. 0x

5. 0x

10. 0x

15. 0x

20. 0x

25. 0x

3/30

/200

94/

6/20

094/

13/2

009

4/20

/200

94/

27/2

009

5/4/

2009

5/11

/200

95/

18/2

009

5/25

/200

96/

1/20

096/

8/20

096/

15/2

009

6/22

/200

96/

29/2

009

7/6/

2009

7/13

/200

97/

20/2

009

7/27

/200

98/

3/20

098/

10/2

009

8/17

/200

98/

24/2

009

8/31

/200

99/

7/20

099/

14/2

009

9/21

/200

99/

28/2

009

10/5

/200

910

/12/

2009

10/1

9/20

0910

/26/

2009

11/2

/200

911

/9/2

009

11/1

6/20

0911

/23/

2009

11/3

0/20

0912

/7/2

009

12/1

4/20

0912

/21/

2009

12/2

8/20

091/

4/20

101/

11/2

010

1/18

/201

01/

25/2

010

2/1/

2010

2/8/

2010

2/15

/201

02/

22/2

010

3/1/

2010

3/8/

2010

3/15

/201

03/

22/2

010

3/29

/201

04/

5/20

104/

12/2

010

4/19

/201

04/

26/2

010

5/3/

2010

5/10

/201

05/

17/2

010

20 20 21 22 23 23 22 22 23 24 23 23 23 24 26 26 26 26 26 25 26 26 28 32 29 32 34 36 37 41 39 39 37 39 40 40 38 38 41 42 41 42 42 42 42 44 43 45 43 44 49 50 49 51 52 52 50 51 49 48

Mul

tiple

(x)


# companies

Source: CapitalIQ

EV/EBITDA multiples remain depressed below LT average


Median P/E

0. 0x

5. 0x

10. 0x

15. 0x

20. 0x

25. 0x

30. 0x

3/30

/200

94/

6/20

094/

13/2

009

4/20

/200

94/

27/2

009

5/4/

2009

5/11

/200

95/

18/2

009

5/25

/200

96/

1/20

096/

8/20

096/

15/2

009

6/22

/200

96/

29/2

009

7/6/

2009

7/13

/200

97/

20/2

009

7/27

/200

98/

3/20

098/

10/2

009

8/17

/200

98/

24/2

009

8/31

/200

99/

7/20

099/

14/2

009

9/21

/200

99/

28/2

009

10/5

/200

910

/12/

2009

10/1

9/20

0910

/26/

2009

11/2

/200

911

/9/2

009

11/1

6/20

0911

/23/

2009

11/3

0/20

0912

/7/2

009

12/1

4/20

0912

/21/

2009

12/2

8/20

091/

4/20

101/

11/2

010

1/18

/201

01/

25/2

010

2/1/

2010

2/8/

2010

2/15

/201

02/

22/2

010

3/1/

2010

3/8/

2010

3/15

/201

03/

22/2

010

3/29

/201

04/

5/20

104/

12/2

010

4/19

/201

04/

26/2

010

5/3/

2010

5/10

/201

05/

17/2

010

19 20 19 18 18 19 19 19 19 20 20 18 18 19 19 20 21 24 24 25 25 25 26 28 26 30 31 32 30 32 32 33 34 36 37 37 37 37 38 39 40 38 38 38 38 36 37 33 32 31 34 34 34 34 34 34 34 34 32 36

Mul

tiple

(x)


# companies

Source: CapitalIQ

P/E multiples also below LT average


Average Valuation – by Sector

-

5.0

10.0

15.0

20.0

25.0

Infra

stru

ctur

e

Mus

ic

Lear

ning

Soc

ial N

etw

orki

ng

Mob

ile

Ver

tical

Com

mun

ities

Div

ersi

fied

Mar

ketin

g

SM

S/V

oice

Gam

ing

Sea

rch

Pod

cast

ing

Col

labo

ratio

n

Med

ia

Adv

ertis

ing

Inte

rnet

Ret

ail

Ent

erpr

ise

Vid

eo

Dat

ing

Fina

ncia

l Ser

vice

s

Virt

ual W

orld

2 2 1 8 4 1 5 6 3 20 1 1 1 9 3 2 3 1 2 1 0# Companies

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Ent

erpr

ise

Mob

ile

Div

ersi

fied

Soc

ial N

etw

orki

ng

Inte

rnet

Ret

ail

Col

labo

ratio

n

Gam

ing

Med

ia

Mar

ketin

g

Dat

ing

Adv

ertis

ing

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

EV/Revenue EV/EBITDA


EV/Revenue Ranking

0.20.20.30.30.40.40.40.4 0.50.60.60.6 0.70.70.70.70.80.80.80.80.8 1.0 1.0 1.0 1.2 1.2 1.3 1.3 1.4 1.4 1.4 1.4 1.5 1.5 1.6 1.8 1.8 1.9 2.12.12.22.22.2 2.72.82.82.93.03.0 3.13.13.13.4 3.74.4 4.54.6 4.74.74.95.5 5.6 5.8

8.08.99.2

10.412.2

13.815.415.5

19.019.7

31.4

41.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Look

Sm

art,

Ltd.

Cyb

erpl

ex In

c.A

ctoz

Sof

t Co.

, Ltd

.G

ameO

n C

o Lt

d.Ju

mbu

ck E

nter

tain

men

t Lim

ited

Rea

lNet

wor

ks In

c.G

igaM

edia

Ltd

.T

ree.

Com

, Inc

.O

penw

ave

Sys

tem

s In

c.D

AD

A S

pAG

lu M

obile

, Inc

.N

orth

gate

Tec

hnol

ogie

s Li

mite

dP

oint

s In

tern

atio

nal L

td.

Uni

serv

e C

omm

unic

atio

ns C

orp.

CD

C C

orp.

AQ

Inte

ract

ive,

Inc.

Inte

rnet

Gro

up S

AA

OL,

Inc.

IAC

/Inte

rAct

iveC

orp.

Uni

ted

Onl

ine,

Inc.

The

New

Yor

k T

imes

Com

pany

Cor

nerW

orld

Cor

pora

tion

The

Str

eet.c

om, I

nc.

OA

O R

BC

Info

rmat

ion

Sys

tem

sH

anbi

tSof

t, In

c.N

etD

rago

n W

ebS

oft,

Inc.

info

GR

OU

P, I

nc.

Hut

chis

on T

elec

omm

unic

atio

ns H

ong

Spa

rk N

etw

orks

, Inc

.O

rient

ed M

edia

Gro

up B

erha

dG

aman

ia D

igita

l Ent

erta

inm

ent C

o., L

td.

SN

AP

Inte

ract

ive,

Inc.

YD

Onl

ine

Cor

p.Y

nk K

orea

Inc.

Neu

Lion

Inco

rpor

ated

Shu

tterf

ly, I

nc.

Val

ueC

lick,

Inc.

Sco

re M

edia

Inc.

PN

I Dig

ital M

edia

Inc.

Mod

ern

Tim

es G

roup

Mtg

AB

Gun

gHo

Onl

ine

Ent

erta

inm

ent,

Inc.

XIN

G A

GS

ohu.

com

Inc.

UO

MO

Med

ia, I

ncis

eem

edia

Inc.

Web

zen

Inc.

Ope

n T

ext C

orp.

Wiz

zard

Sof

twar

e C

orpo

ratio

nM

yria

d G

roup

AG

NE

OW

IZ G

ames

Cor

pora

tion

Vel

ti P

lcF

rogs

ter

Inte

ract

ive

Pic

ture

s A

GS

K C

omm

unic

atio

ns C

o., L

td.

Tal

eo C

orp.

Cha

ngyo

u.co

m L

imite

dD

igita

lPos

t Int

erac

tive,

Inc.

Mix

i, In

c.K

ings

oft C

orpo

ratio

n Li

mite

dW

ebM

edia

Bra

nds

Inc

HU

GH

ES

Tel

emat

ics,

Inc.

Uni

lava

Cor

pora

tion

Acc

eler

ize

New

Med

ia, I

nc.

Ling

o M

edia

Cor

pora

tion

Gre

e, In

c.D

ena

Co.

Ltd

.T

rans

Gam

ing,

Inc.

Flu

id M

usic

Can

ada,

Inc.

Chi

nese

Gam

er In

tern

atio

nal

Bey

ond

Com

mer

ce, I

nc.

Geo

Sen

tric

Oyj

MO

KO

.mob

i Lim

ited

Ten

cent

Hol

ding

s Lt

d.P

aid

Inc.

Brig

ht T

hing

s pl

cS

pect

rum

DN

A, I

nc.

Source: CapitalIQ

SpectrumDNA has highest revenue multiple at 41.8x


EV/EBITDA Ranking

1.3 1.6 2.4 2.44.2 5.2 5.3 5.4 5.8 6.4 6.5 6.6 6.6 6.7 6.7 7.0 7.4 8.1 8.2 8.4 8.8

10.1 10.5 11.1 11.5 12.013.2 13.3 14.0 14.2 15.2 15.2 15.4

17.0 17.419.5

20.6

23.8

27.9

36.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Gam

eOn

Co

Ltd.

Act

oz S

oft C

o., L

td.

Cyb

erpl

ex In

c.

AO

L, In

c.

Uni

ted

Onl

ine,

Inc.

The

New

Yor

k T

imes

Com

pany

Soh

u.co

m In

c.H

utch

ison

Tel

ecom

mun

icat

ions

Hon

g K

ong

Hol

ding

sLt

d.

DA

DA

SpA

Net

Dra

gon

Web

Sof

t, In

c.

CD

C C

orp.

Spa

rk N

etw

orks

, Inc

.

Val

ueC

lick,

Inc.

YD

Onl

ine

Cor

p.

info

GR

OU

P, I

nc.

Cha

ngyo

u.co

m L

imite

d

Uni

serv

e C

omm

unic

atio

ns C

orp.

XIN

G A

G

Gam

ania

Dig

ital E

nter

tain

men

t Co.

, Ltd

.

PN

I Dig

ital M

edia

Inc.

Gun

gHo

Onl

ine

Ent

erta

inm

ent,

Inc.

IAC

/Inte

rAct

iveC

orp.

Ope

n T

ext C

orp.

Kin

gsof

t Cor

pora

tion

Lim

ited

NE

OW

IZ G

ames

Cor

pora

tion

Sco

re M

edia

Inc.

Shu

tterf

ly, I

nc.

Han

bitS

oft,

Inc.

Gre

e, In

c.

Ynk

Kor

ea In

c.

Mix

i, In

c.

Vel

ti P

lc

Mod

ern

Tim

es G

roup

Mtg

AB

Ope

nwav

e S

yste

ms

Inc.

The

Str

eet.c

om, I

nc.

Fro

gste

r In

tera

ctiv

e P

ictu

res

AG

Den

a C

o. L

td.

Chi

nese

Gam

er In

tern

atio

nal

Tal

eo C

orp.

Ten

cent

Hol

ding

s Lt

d.

Excluding EV/EBITDA > 100xSource: CapitalIQ

Tencent leads the group at 36.6x


P/E Ranking

5.5 6.4 7.9 8.1 10.1 10.2 10.3 12.3 14.3 15.4 15.5 16.4 16.5

22.4 22.927.7

30.8 30.9 31.3 33.8

42.545.9 47.2 47.5 48.4

54.0

70.9

77.983.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Uni

serv

e C

omm

unic

atio

ns C

orp.

Cyb

erpl

ex In

c.

DA

DA

SpA

YD

Onl

ine

Cor

p.

Cha

ngyo

u.co

m L

imite

d

Gam

eOn

Co

Ltd.

Uni

ted

Onl

ine,

Inc.

AO

L, In

c.

Soh

u.co

m In

c.

Val

ueC

lick,

Inc.

The

New

Yor

k T

imes

Com

pany

Kin

gsof

t Cor

pora

tion

Lim

ited

Hut

chis

on T

elec

omm

unic

atio

ns H

ong

Kon

g H

oldi

ngs

Ltd.

Fro

gste

r In

tera

ctiv

e P

ictu

res

AG

Net

Dra

gon

Web

Sof

t, In

c.

Gre

e, In

c.

Gam

ania

Dig

ital E

nter

tain

men

t Co.

, Ltd

.

Vel

ti P

lc

Chi

nese

Gam

er In

tern

atio

nal

NE

OW

IZ G

ames

Cor

pora

tion

Mix

i, In

c.

Ope

n T

ext C

orp.

info

GR

OU

P, I

nc.

Den

a C

o. L

td.

Ten

cent

Hol

ding

s Lt

d.

CD

C C

orp.

Han

bitS

oft,

Inc.

Act

oz S

oft C

o., L

td.

Shu

tterf

ly, I

nc.

Source: CapitalIQ

Shutterfly has the highest P/E at 83.4x


Total Market Capitalization - $80 BN

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

5/25

/200

96/

1/20

09

6/8/

2009

6/15

/200

96/

22/2

009

6/29

/200

97/

6/20

09

7/13

/200

97/

20/2

009

7/27

/200

98/

3/20

098/

10/2

009

8/17

/200

98/

24/2

009

8/31

/200

99/

7/20

099/

14/2

009

9/21

/200

99/

28/2

009

10/5

/200

910

/12/

2009

10/1

9/20

0910

/26/

2009

11/2

/200

9

11/9

/200

911

/16/

2009

11/2

3/20

0911

/30/

2009

12/7

/200

912

/14/

2009

12/2

1/20

09

12/2

8/20

091/

4/20

10

1/11

/201

01/

18/2

010

1/25

/201

02/

1/20

102/

8/20

10

2/15

/201

02/

22/2

010

3/1/

2010

3/8/

2010

3/15

/201

0

3/22

/201

03/

29/2

010

4/5/

2010

4/12

/201

0

4/19

/201

04/

26/2

010

5/3/

2010

5/10

/201

05/

17/2

010

95 96 96 96 96 96 96 96 96 96 96 96 96 96 96 95 96 96 96 96 97 97 97 97 97 98 98 99 99 99 99 99 99 99 99 99 99 99 99100100100100100100100100100100100100100

(US

$m)

# companies

Source: CapitalIQ


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

iver

sifie

d

Gam

ing

Med

ia

Soc

ial N

etw

orki

ng

Col

labo

ratio

n

Mar

ketin

g

Ent

erpr

ise

Sea

rch

Inte

rnet

Ret

ail

Mob

ile

SM

S/V

oice

Mus

ic

Fina

ncia

l Ser

vice

s

Dat

ing

Adv

ertis

ing

Virt

ual W

orld

Vid

eo

Ver

tical

Com

mun

ities

Pay

men

t

Infra

stru

ctur

e

Pod

cast

ing

Lear

ning

7 27 10 17 1 6 3 1 2 5 3 2 1 2 3 2 1 1 1 3 1 1# Companies

27 Gaming companies totaling over $15 bn in market cap


Market Cap Ranking

0

1,000

2,000

3,000

4,000

5,000

6,000

Mob

ile D

ata

Cor

p.Br

oadW

ebAs

ia In

c.C

orne

rWor

ld C

orpo

ratio

nU

OM

O M

edia

, Inc

Uni

serv

e C

omm

unic

atio

ns C

orp.

Orie

nted

Med

ia G

roup

Ber

had

Beyo

nd C

omm

erce

, Inc

.D

igita

lPos

t Int

erac

tive,

Inc.

Wor

lds.

com

Inc.

En2G

o In

tern

atio

nal,

Inc.

Kiw

ibox

.Com

, Inc

.Sa

hara

Med

ia H

oldi

ngs,

Inc.

Spec

trum

DN

A, In

c.SN

AP In

tera

ctiv

e, In

c.Br

ight

Thi

ngs

plc

Kent

Inte

rnat

iona

l Hol

ding

s In

c.R

eal V

alue

Est

ates

, Inc

.is

eem

edia

Inc.

VOIS

, Inc

.Li

ngo

Med

ia C

orpo

ratio

nM

OKO

.mob

i Lim

ited

Inte

rnet

Gro

up S

AJu

mbu

ck E

nter

tain

men

t Lim

ited

IAS

Ener

gy, I

nc.

Nor

thga

te T

echn

olog

ies

Lim

ited

Wiz

zard

Sof

twar

e C

orpo

ratio

nAc

cele

rize

New

Med

ia, I

nc.

Dol

phin

Dig

ital M

edia

, Inc

.Yn

k Ko

rea

Inc.

Askn

et A

GN

eXpl

ore

Cor

pora

tion

Soci

alw

ise,

Inc.

Look

Smar

t, Lt

d.M

ultip

lied

Med

ia C

orpo

ratio

nW

ebM

edia

Bran

ds In

cTr

ansG

amin

g, In

c.U

nila

va C

orpo

ratio

nG

lu M

obile

, Inc

.G

eoSe

ntric

Oyj

Cyb

erpl

ex In

c.D

igita

lTow

n, In

c.G

ravi

ty C

o., L

tdN

gi G

roup

Inc.

PNI D

igita

l Med

ia In

c.N

euLi

on In

corp

orat

edM

oggl

e, In

cFr

ogst

er In

tera

ctiv

e Pi

ctur

es A

GSc

ore

Med

ia In

c.Q

uepa

sa C

orp.

DAD

A Sp

ASp

ark

Net

wor

ks, I

nc.

AQ In

tera

ctiv

e, In

c.H

anbi

tSof

t, In

c.Po

ints

Inte

rnat

iona

l Ltd

.YD

Onl

ine

Cor

p.Tr

ee.C

om, I

nc.

Acto

z So

ft C

o., L

td.

HU

GH

ES T

elem

atic

s, In

c.Pa

id In

c.G

ameO

n C

o Lt

d.Th

eStre

et.c

om, I

nc.

Flui

d M

usic

Can

ada,

Inc.

The9

Lim

ited

Web

zen

Inc.

Gig

aMed

ia L

td.

XIN

G A

GO

AO R

BC In

form

atio

n Sy

stem

sM

yria

d G

roup

AG

Ope

nwav

e Sy

stem

s In

c.C

DC

Cor

p.Ve

lti Pl

cG

aman

ia D

igita

l Ent

erta

inm

ent C

o., L

td.

Net

Dra

gon

Web

Soft,

Inc.

Gun

gHo

Onl

ine

Ente

rtain

men

t, In

c.in

foG

RO

UP,

Inc.

Rea

lNet

wor

ks In

c.Sh

utte

rfly,

Inc.

Uni

ted

Onl

ine,

Inc.

NEO

WIZ

Gam

es C

orpo

ratio

nSK

Com

mun

icat

ions

Co.

, Ltd

.M

ixi,

Inc.

King

soft

Cor

pora

tion

Lim

ited

Chi

nese

Gam

er In

tern

atio

nal

Valu

eClic

k, In

c.H

utch

ison

Tel

ecom

mun

icat

ions

Hon

g Ko

ng H

oldi

ngs

Tale

o C

orp.

Perfe

ct W

orld

Co.

, Ltd

.Th

e N

ew Y

ork

Tim

es C

ompa

nyC

hang

you.

com

Lim

ited

Gia

nt In

tera

ctiv

e G

roup

, Inc

.So

hu.c

om In

c.AO

L, In

c.IA

C/In

terA

ctiv

eCor

p.O

pen

Text

Cor

p.G

ree,

Inc.

Shan

da In

tera

ctiv

e En

terta

inm

ent L

td.

Mod

ern

Tim

es G

roup

Mtg

AB

Den

a C

o. L

td.

Net

ease

.com

Inc.

Tenc

ent H

oldi

ngs

Ltd.

Source: CapitalIQ

Tencent’s $36 bn market cap dominates group


Price Performance – 1 Week

Rising30%

Flat8%

Falling62%

Price Momentum• Negative momentum for yet another

week with 62% of stocks falling over the past week (following on last week’s 69% decliner figure and 62% in the week prior to that).


Average Price Performance – 1 Week, by Sector

25.0%

13.2%11.3%

2.3%

-1.9% -1.9% -1.9% -2.1% -2.3% -2.5% -2.7% -3.3% -3.4% -3.5% -4.2% -4.8% -6.0% -7.3% -7.3%-12.1%

-16.7%-21.4%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

Pod

cast

ing

Mar

ketin

g

Lear

ning

Col

labo

ratio

n

Pay

men

t

Adv

ertis

ing

Inte

rnet

Ret

ail

Med

ia

Dat

ing

Mob

ile

Div

ersi

fied

Mus

ic

Ent

erpr

ise

Gam

ing

Fina

ncia

lS

ervi

ces

Ver

tical

Com

mun

ities

SM

S/V

oice

Sea

rch

Soc

ial

Net

wor

king

Infra

stru

ctur

e

Vid

eo

Virt

ual W

orld

Source: CapitalIQ

Podcasting securities get biggest boost


Price Performance – 1 Week

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

BW

BAP

WR

D24

97SH

HD

WD

DD

3838

TSX:

NLN

MB

YL

OM

ED

IAA0

5279

021

21V

OIS

TSX

V:M

MC

CM

:DA

DG

LPD

B:M

0CC

HIN

.AB

YOC

NX

PC

SPX

AW

SE:

IGR

NC

TYU

NLA

KIW

B37

65 IEE

3812

TSXV

:US

SA0

6627

0TS

X:FM

NA0

9566

0IA

SC

.A38

88TS

XV

:PN

A023

770

WEB

MA0

5277

0LO

VS

ND

ATS

E:24

32N

TES

CYO

UTR

EE

ASX:

JMB

RN

WK

SEH

K:21

5TS

X:P

TSTS

X:S

CR

777

A047

080

GR

VY

SOH

USC

LWA

CLZ

OP

WV

KN

TH GA

NY

TQ

PSA

KO

SE:

A06

HU

TCU

NTD

RV

LU 700

GE

O1V

STV

ID

GTW

ETG

ID

PD

MC

WR

LM

TG B

UO

MO

IUSA

5900

57TS

CM

PA

YDO

1BC

S

FLY

AO

LTS

E:36

32O

TEX

GTS

M:3

08R

BC

I61

80M

YR

NG

LUU

TLE

OFR

GG

IGM

IAC

ITS

XV:T

NG

AIM

:BG

TX

TRA

:A5A

TSX

V:LM

TSX

:CX

MKB

VC

LKLO

OK

WZE VE

L

Source: CapitalIQ


Price Performance (Top 10)1 Month

0%

20%40%

60%80%

100%120%

140%

Dig

italT

own,

Inc.

Look

Smar

t, Lt

d.

Velti

Plc

IAS

Ener

gy, I

nc.

SKC

omm

unic

atio

nsC

o., L

td.

Uni

serv

eC

omm

unic

atio

nsC

orp.

Glu

Mob

ile, I

nc.

SNAP

Inte

ract

ive,

Inc.

Que

pasa

Cor

p.

Flui

d M

usic

Can

ada,

Inc.

3 Month

0%20%40%60%80%

100%120%140%160%180%

IAS

Ene

rgy,

Inc.

Bey

ond

Com

mer

ce, I

nc.

Uni

lava

Cor

pora

tion

SN

AP

Inte

ract

ive,

Inc.

Look

Sm

art,

Ltd.

Que

pasa

Cor

p.

Vel

ti P

lc

Gam

eOn

Co

Ltd.

Dig

italT

own,

Inc.

SK

Com

mun

icat

ions

Co.

, Ltd

.

6 Month

0%

500%

1000%

1500%

2000%

2500%

OA

O R

BC

Info

rmat

ion

Sys

tem

s

Que

pasa

Cor

p.

Uni

serv

eC

omm

unic

atio

nsC

orp.

AQ

Inte

ract

ive,

Inc.

SN

AP

Inte

ract

ive,

Inc.

Vel

ti P

lc

SK

Com

mun

icat

ions

Co.

, Ltd

.

Den

a C

o. L

td.

Sco

re M

edia

Inc.

Poi

nts

Inte

rnat

iona

l Ltd

.

1 Year

0%

500%1000%

1500%

2000%

2500%3000%

3500%

OAO

RBC

Info

rmat

ion

Syst

ems

Que

pasa

Cor

p.

Velti

Plc

Dig

italP

ost

Inte

ract

ive,

Inc.

Uni

serv

eC

omm

unic

atio

nsC

orp.

Tran

sGam

ing,

Inc.

Flui

d M

usic

Can

ada,

Inc.

Den

a C

o. L

td.

Frog

ster

Inte

ract

ive

Pict

ures

AG

Gre

e, In

c.

Source: CapitalIQ


Price Performance (Bottom 10)1 Week

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

Acto

z So

ftC

o., L

td.

Mob

ile D

ata

Cor

p.

Orie

nted

Med

iaG

roup

Ber

had

Neu

Lion

Inco

rpor

ated

AQ In

tera

ctiv

e,In

c.

Wor

lds.

com

Inc.

Saha

ra M

edia

Hol

ding

s, In

c.

Ngi

Gro

up In

c.

Perfe

ct W

orld

Co.

, Ltd

.

Broa

dWeb

Asia

Inc.

1 Month

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

Neu

Lion

Inco

rpor

ated

DAD

A Sp

A

The9

Lim

ited

Ngi

Gro

up In

c.

Wor

lds.

com

Inc.

Saha

ra M

edia

Hol

ding

s, In

c.

Orie

nted

Med

iaG

roup

Ber

had

Mob

ile D

ata

Cor

p.

Broa

dWeb

Asia

Inc.

Cor

nerW

orld

Cor

pora

tion

6 Month

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

0.0%

Perfe

ct W

orld

Co.

, Ltd

.

Cyb

erpl

ex In

c.

Kiw

ibox

.Com

,In

c.

DAD

A Sp

A

isee

med

ia In

c.

Saha

ra M

edia

Hol

ding

s, In

c.

UO

MO

Med

ia,

Inc

Cor

nerW

orld

Cor

pora

tion

En2G

oIn

tern

atio

nal,

Inc.

Broa

dWeb

Asia

Inc.

1 Year

-120.0%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

Dol

phin

Dig

ital

Med

ia, I

nc.

Ynk

Kore

a In

c.

Spec

trum

DN

A,In

c.

Mob

ile D

ata

Cor

p.

Cor

nerW

orld

Cor

pora

tion

En2G

oIn

tern

atio

nal,

Inc.

Beyo

ndC

omm

erce

,In

c.

Saha

ra M

edia

Hol

ding

s, In

c.

Broa

dWeb

Asia

Inc.

UO

MO

Med

ia,

Inc

Source: CapitalIQ


Capital Market Activity (Financing, M&A)


Financing Activity – Current MonthFin. Am ount (Million) T ype of financing

Month C om pany Nam e C ountry S e ctor Acquis ition Ange l/S e e d S e rie s A S e rie s B S e rie s C Grand T otal

May-10 C ube T re e US A Collaboration 50.0 50.0

Gilt Groupe US A Internet R etail 35.0 35.0

S cout L abs US A A naly tics 20.0 20.0

Booyah US A V irtual World 20.0 20.0

Fatfoogoo A us tria V irtual Goods 10.0 10.0

Worldw ide w ork e r UA E V ertical Communities 9.0 9.0

V antrix Canada Mobile 8.7 8.7

BuzzFe e d US A A ggregation 8.0 8.0

S w ipe ly US A S ocia l Commerce 7.5 7.5

C rite o US A A dvertis ing 7.0 7.0

Grock it US A V irtual World 7.0 7.0

J e lli US A Mus ic 7.0 7.0

WordS tre am US A S earch 6.0 6.0

S tack Ove rflow US A V ertical Communities 6.0 6.0

Enquis ite US A A naly tics 5.2 5.2

Ad.ly US A A dvertis ing 5.0 5.0

He lloWalle t US A Financia l S erv ices 3.6 3.6

T ick e tfly US A V ertical Communities 3.0 3.0

Woozw orld Canada V irtual World 3.0 3.0

Groupalia S pain S ocia l Commerce 2.5 2.5

Ne w s y US A Media 2.0 2.0

T he Extraordinar ie s US A Mobile 1.1 1.1

L ocalytics US A A naly tics 0.7 0.7

Etacts US A Inf ras tructure 0.7 0.7

MightyMe e ting US A Collaboration 0.3 0.3

apprupt Germany Mobile A d

May-10 T otal 89.0 4.1 33.3 19.0 82.9 228.3


Financing Activity – Current Month, by Sector

Other51%

Internet Retail14%

Collaboration14%

Virtual World8%

Advertising6%Analytics

7%

$ Raised # Deals

Internet Retail7%

Collaboration7%

Virtual World13%

Analytics10%

Advertising10%Vertical

Communities10%

Social Commerce

7%

Virtual Goods3%

Mobile7%

Gaming3%

Aggregation3%

Music3%

Search3%

Financial Services

3%

Media3%

Enterprise3%

Infrastructure3%


Financing Activity

4.65.5

6.6

8.9

6.2

10.1

12.2

9.18.2

5.3

16.6

6.6

12.5

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

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-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*May-09 includes $200m FB investment Dec-09 includes $180m Zynga investmentApr-10 includes $300m DST investment

$513 mm (ex-DST) with $10.7 mm average deal size


0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Div

ersi

fied

Mob

ile

Col

labo

ratio

n

Gam

ing

Cro

wds

ourc

edC

onte

ntS

ocia

lC

omm

erce

Med

ia

Vid

eo

Adv

ertis

ing

Soc

ial

Net

wor

ksIn

tern

et R

etai

l

Ana

lytic

sFi

nanc

ial

Ser

vice

sV

irtua

l Wor

ldV

ertic

alC

omm

uniti

esM

obile

Ad

Wid

get

Sea

rch

Mob

ileP

aym

ent

Ent

erpr

ise

Loca

tion-

base

d S

NS

Onl

ine

Lear

ning

Mus

ic

Virtu

al G

oods

Trav

el

Infra

stru

ctur

e

Agg

rega

tion

Blo

g

Cla

ssifi

ed

Mic

rom

edia

Onl

ine

Dat

ing

Mic

robl

og

1 8 4 8 6 6 6 9 16 10 4 10 7 6 9 3 2 6 2 3 4 1 2 1 3 2 1 2 1 1 1 1

(US

$m)

# companies

Capital Market Activity Ranking – by Sector, last three months

Advertising has most deals in last 3 months


Top 5 Sectors (2008-present)

$ Raised # Deals

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

(US

$ m

m)

Social Networks Gaming Advertising Virtual World Video

0

5

10

15

20

25

30

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

(# D

eals

)

Social Networks Advertising Gaming Virtual World Video

Top 5 sectors average $155m & 14 deals per month (aggregate)


Upcoming Events/Earnings

Source: CapitalIQ

Company Date Time Quarter Conf Call DetailsGiant Interactive Group, Inc. (NYSE:GA) 17-May-10 9:00 PM (EST) Q1/10 1-866-804-6921Wizzard Softw are Corporation (AMEX:WZE) 18-May-10 1:00 PM (EST) Q1/10 1-877-407-8033Netease.com Inc. (NasdaqGS:NTES) 19-May-10 9:00 PM (EST) Q1/10 877-941-2069


Public Company ListingC ompany Name Tic ker E xc hange

Trading C urrenc y HQ

C urrent P rice

US $ Market C ap (mm) E mployees

Accelerize New Media , Inc. AC LZ OT C B B US D United S tates 1 16.6 10 Actoz S oft C o. , L td. A052790 K OS E K R W S outh K orea 11,100 84.8 NA AOL, Inc. AOL NY S E US D United S tates 24 2,554.9 6,700 AQ Interactive, Inc. 3838 T S E J P Y J apan 122,500 72.3 NA As knet AG XT R A:A5A XT R A E UR G ermany 4 22.3 NA B eyond C ommerce, Inc. B Y OC OT C B B US D United S tates 0 4.3 NA B right T hings plc AIM:B G T AIM G B P United K ingdom 0 6.4 9 B roadW ebAs ia Inc. B W B A OT C P K US D United S tates 0 1.7 46 C DC C orp. C HIN.A Nas daqG S US D Hong K ong 2 244.2 NA C hangyou.com L imited C Y OU Nas daqG S US D C hina 29 1,489.8 1,308 C hines e G amer International G T S M:3083 G T S M T W D T aiwan 344 925.3 NA C ornerW orld C orporation C W R L OT C B B US D United S tates 0 1.9 16 C yberplex Inc. T S X:C X T S X C AD C anada 1 46.1 NA DADA S pA C M:DA C M E UR Ita ly 3 67.0 NA Dena C o. L td. T S E :2432 T S E J P Y J apan 792,000 4,079.9 NA Digita lP os t Interactive, Inc. DG LP OT C B B US D United S tates 0 4.5 6 Digita lT own, Inc. DG T W OT C B B US D United S tates 2 48.0 3 Dolphin Digita l Media , Inc. DP DM OT C B B US D United S tates 0 17.0 NA E n2G o Internationa l, Inc. E T G I OT C B B US D United S tates 0 4.8 NA F luid Mus ic C anada , Inc. T S X:F MN T S X C AD United S tates 2 112.4 NA F rogs ter Interactive P ictures AG F R G XT R A E UR G ermany 19 59.6 NA G amania Digita l E nterta inment C o. , L td. 6180 G T S M T W D T aiwan 52 253.8 NA G ameOn C o Ltd. 3812 T S E J P Y J apan 87,000 94.0 NA G eoS entric Oyj G E O1V HLS E E UR F inland 0 44.2 120 G iant Interactive G roup, Inc. G A NY S E US D C hina 7 1,644.4 NA G igaMedia L td. G IG M Nas daqG S US D T aiwan 2 134.7 751 G lu Mobile, Inc. G LUU Nas daqG M US D United S tates 1 40.4 479 G ravity C o. , L td G R V Y Nas daqG M US D S outh K orea 2 51.4 469 G ree, Inc. T S E :3632 T S E J P Y J apan 5,590 2,743.0 NA G ungHo Online E nterta inment, Inc. 3765 OS E J P Y J apan 230,000 286.3 NA HanbitS oft, Inc. A047080 K OS E K R W S outh K orea 3,935 74.7 NA HUG HE S T elematics , Inc. HUT C OT C B B US D United S tates 3 85.2 276 Hutchis on T elecommunications Hong K ong HS E HK :215 S E HK HK D Hong K ong 2 987.4 1,732 IAC /InterActiveC orp. IAC I Nas daqG S US D United S tates 23 2,561.5 3,200 IAS E nergy, Inc. IAS C .A OT C P K US D C anada 0 11.3 NA infoG R OUP , Inc. IUS A Nas daqG S US D United S tates 8 461.9 3,146 Internet G roup S A W S E : IG R W S E P LN P oland 1 9.5 NA


Public Company Listing cont.C ompany Name Tic ker E xc hange

Trading C urrenc y HQ

C urrent P ric e

US $ Market C ap (mm) E mployees

is eemedia Inc. IE E T S XV C AD C anada 0.11 7.0 79 J umbuck E nterta inment L imited AS X: J MB AS X AUD Aus tra lia 0.24 10.0 NA K ent International Holdings Inc. K NT H O T C P K US D United S tates 1.80 6.4 NA K ings oft C orporation L imited 3888 S E HK HK D C hina 5.54 773.6 6 K iwibox.C om, Inc. K IW B O T C B B US D United S tates 0.01 4.9 NA L ingo Media C orporation T S XV :L M T S XV C AD C anada 0.69 8.3 65 LookS mart, L td. LOOK Nas daqG M US D United S tates 1.80 30.9 NA Mixi, Inc. 2121 T S E J P Y J apan 457,000.00 766.4 NA Mobile Data C orp. MB Y L O T C B B US D United S tates 0.05 1.2 2,936 Modern T imes G roup Mtg AB MT G B O M S E K S weden 415.10 3,513.0 2 Moggle, Inc DB :M0C DB E UR United S tates 1.00 57.5 NA MO K O.mobi L imited MK B AS X AUD Aus tra lia 0.08 8.3 NA Multiplied Media C orporation T S XV :MMC T S XV C AD C anada 0.15 36.1 405 Myriad G roup AG MY R N S W X C HF S witzerland 4.14 176.8 NA NE OW IZ G ames C orporation A095660 K OS E K R W S outh K orea 36,750.00 672.0 NA NetDragon W ebS oft, Inc. 777 S E HK HK D C hina 3.79 256.8 NA Neteas e.com Inc. NT E S Nas daqG S US D C hina 32.15 4,164.1 224 NeuLion Incorporated T S X:NLN T S X C AD C anada 0.50 56.2 NA NeXplore C orporation NXP C O T C P K US D United S tates 0.45 25.1 NA Ngi G roup Inc. 2497 T S E J P Y J apan 38,750.00 52.1 160 Northgate T echnologies L imited 590057 B S E INR India 17.00 13.0 2,523 OAO R B C Information S ys tems R B C I MIC E X R UB R us s ia 39.51 174.4 3,700 Open T ext C orp. OT E X Nas daqG S US D C anada 45.22 2,567.6 590 Openwave S ys tems Inc. OP W V Nas daqG S US D United S tates 2.35 197.1 NA Oriented Media G roup B erhad OME DIA K LS E MY R Malays ia 0.10 4.2 20 P aid Inc. P AY D O T C B B US D United S tates 0.35 93.6 NA P erfect W orld C o. , L td. P W R D Nas daqG S US D C hina 24.71 1,231.2 NA P NI Digita l Media Inc. T S XV :P N T S XV C AD C anada 1.70 55.5 91 P oints Internationa l L td. T S X:P T S T S X C AD C anada 0.54 77.9 71 Quepas a C orp. QP S A O T C B B US D United S tates 4.95 64.2 NA R ea l V a lue E s tates , Inc. R V L U O T C B B US D Is rael 1.03 6.6 1,754 R ea lNetworks Inc. R NW K Nas daqG S US D United S tates 3.94 532.9 NA S ahara Media Holdings , Inc. S HHD O T C B B US D United S tates 0.16 5.4 220 S core Media Inc. T S X:S C R T S X C AD C anada 0.81 63.3 NA S handa Interactive E nterta inment Ltd. S NDA Nas daqG S US D C hina 42.43 2,853.6 519 S hutterfly, Inc. S F L Y Nas daqG S US D United S tates 22.65 608.3 NA


Public Company Listing cont.

C ompany Name Tic ker E xc hangeTrading

C urrenc y HQC urrent

P riceUS $ Market

C ap (mm) E mployees

S K C ommunications C o. , L td. A066270 K OS E K R W S outh K orea 18,550.00 675.5 15 S NAP Interactive, Inc. S T V I OT C B B US D United S tates 0.19 6.3 NA S ocia lwis e, Inc. S C LW OT C B B US D United S tates 0.53 26.5 3,997 S ohu.com Inc. S OHU Nas daqG S US D C hina 44.89 1,697.7 155 S park Networks , Inc. LOV AME X US D United S tates 3.34 68.8 NA S pectrumDNA, Inc. S P XA OT C B B US D United S tates 0.09 6.2 916 T a leo C orp. T LE O Nas daqG M US D United S tates 25.21 1,002.3 7,515 T encent Holdings L td. 700 S E HK HK D C hina 154.20 36,142.4 7,665 T he New Y ork T imes C ompany NY T NY S E US D United S tates 9.26 1,348.3 1,010 T he9 L imited NC T Y Nas daqG S US D C hina 4.84 123.5 274 T heS treet.com, Inc. T S C M Nas daqG M US D United S tates 3.26 102.9 28 T rans G aming, Inc. T S XV :T NG T S XV C AD C anada 0.69 39.5 700 T ree.C om, Inc. T R E E Nas daqG M US D United S tates 7.21 80.8 39 Unilava C orporation UNLA OT C B B US D United S tates 0.40 40.0 NA Unis erve C ommunications C orp. T S XV :US S T S XV C AD C anada 0.12 3.3 1,699 United Online, Inc. UNT D Nas daqG S US D United S tates 7.22 629.1 NA UOMO Media , Inc UOMO OT C B B US D C anada 0.03 2.2 1,086 V alueC lick , Inc. V C LK Nas daqG S US D United S tates 11.41 927.9 450 V elti P lc V E L AIM G B P United K ingdom 4.60 252.8 2 V OIS , Inc. V OIS OT C B B US D United S tates 0.01 8.0 83 W ebMediaB rands Inc W E B M Nas daqG S US D United S tates 1.00 37.4 NA W ebzen Inc. K OS E :A069080 K OS E K R W S outh K orea 12,550.00 129.0 80 W izzard S oftware C orporation W ZE AME X US D United S tates 0.25 14.5 NA W orlds .com Inc. W DDD OT C B B US D United S tates 0.08 4.6 NA XING AG O1B C XT R A E UR G ermany 27.03 171.8 NA Y D Online C orp. A052770 K OS E K R W S outh K orea 6,100.00 79.4 NA Y nk K orea Inc. A023770 K OS E K R W S outh K orea 2,800.00 19.4 -


DisclaimerRELEVANT DISCLOSURES APPLICABLE TO: NONE1. None applicable.ANALYST CERTIFICATIONEach 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).

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

Web 2.0 Weekly - May 18, 2010 "What recession? Online luxury heats up"

Documents

Transcript of Web 2.0 Weekly - May 18, 2010 "What recession? Online luxury heats up"