Barron's likes RealNetworks

Andrew Bary writes a glowing recommendation of RealNetworks in this weekend's Barron's (paid subscription required). His key points:

• RNWK has 700,000 subscribers to its Rhapsody jukebox service, and controls 40% of the music-subscription market.
• Its market may be about to take off with the introduction of specialized portable music players.
• RNWK is an inexpensive bet on the subscription music market, as it is operating roughly at breakeven, has $1.75 a share in cash and securities, and deferred tax assets worth another $1 a share.
• RNWK has sued Microsoft for bundling Windows Media Player with Windows, and has said the damages could total $1 billion (an amount equal to its current market value). Bary speculates that Microsoft could settle for $500 million, or $2 per RNWK share after tax.
• RNWK's stock has under-performed rival Napster (formerly Roxio), and could easily catch up.

Quick comment:
For a different perspective, look at the comments on my summary of RNWK's recent earnings announcement.

The chart below compares RNWK to Napster (NAPS).