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Gemstar Gets Green Flag

As Gemstar begins the long road back to financial sobriety, it's worth noting that there may be some headroom in the stock. The company announced a 15.5% decline in revenue to $253 million from $299 million. Annualizing those results and using a very conservative 4x EBITDA, a share value of about $2.4 emerges, or about half of the $4 range where the issue is trading. Assuming even a faint advertising turnaround, an EBITDA multiple of 8x becomes reasonable. The per share value then is $8.

To more accurately track Gemstar, see "Kagan Media Money" at www.kagan.com.

GEMSTAR PER SHARE VALUATION ANALYSIS

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GEMSTAR QUARTER ENDING SEPTEMBER 30, 2002

CONSOLIDATED GEMSTAR - TV GUIDE

Technology Industry

Gemstar Gets Green Flag

Cable World, Nov 18, 2002

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