Steady Return Stock - RNWK

The steady return stock of the day is RealNetworks Inc. (RNWK), the Seattle based digital media company. Since the dot-com bubble burst which send the stock from close to $200 in year 2000 all the way down to $2.68 per share in October of 2002, the stock has been on a come back slowly and is now trading at $10.99 per share. For the past 52 weeks the stock is still on the way up slowly and is showing sign of steady growing stock at both the technical and financial side:

Technical
The 52 weeks chart shows this is a steady return stocks. First of all since April of this year the 50 day and 200 day moving average have been rising steadily. Then since the huge surge last October the stock has stayed pretty close to 50 day moving average except the surge this April. In addition since January of this year both 50 day and 200 day moving average stay close together so we can confirm this is a steady growing stock.

Financial
The financial statment shows steady growth in revenue from $202 million in 2003 to $325 million in 2005. The quarterly revenue is also on a rise as well for the past four quarters. Another strong sign is from net income where the company turned from net loss of $21 million in 2003 and net loss of $22 million in 2004 to net income of $312 million in 2005. The first two quarters of this year also came in with net income of $24 million and $38 million.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(digital media): 4
2. Technical: 4
3. Financial: 5
Overall Rating: A