This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Napster Wakes Up

Napster has said that a growing array of music-enabled cell phones should help grow the business. Analysts also pointed to its partnership with NTT DoCoMo (DCM), Japan's largest wireless carrier, which will sell handsets compatible with Napster To Go.

Also in the pool of potential pursuers are Internet companies. Yahoo! (YHOO) purchased Musicmatch in 2004, but Google (GOOG) doesn't have a music service and could be a contender, Munster says. (AMZN) recently debuted its movie download service , and music would make a logical addition.

The third, long-shot category could be broadband providers, Munster says, as companies "try and entice people to stick with their broadband service providers. I think you could see a music service integrated with those offerings."

Don't discount a certain hardware manufacturer, says another Napster watcher.

"The one that makes the most sense to me is SanDisk (SNDK)," says Darren Aftahi, vice president, equity research at ThinkEquity Partners, which makes a market in Napster but does not own shares or do banking.

"They have pretty good traction in the MP3 market -- that gives Napster a distribution platform," he says.

On Monday, SanDisk lent its support to RealNetworks instead. Real said its Rhapsody service will be integrated into SanDisk Sansa e200 MP3 players.

Though it lags far behind Apple, SanDisk sells the second-most-popular MP3 player.

Aftahi believes that Napster's subscription model will gain support as the capability on mobile phones grows. "You need to have the networks in place to deliver that data over the air, and you need to have the handsets to support it," he says.

With other digital media plays being picked off one by one, investors might want to get in on the company ahead of a sale.

"I think it's undervalued," Munster says. "Wall Street has basically walked away from Napster as a viable company, and I think they're missing the value of the Napster brand."

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs