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Last month's pick, TiVo, jumped to an all-time high of 78 yesterday -- up an amazing 212% in less than three weeks
by Christian DeHaemer
TiVo announced two deals, one with Blockbuster Video and one with Liberate Technologies.
The deal with Blockbuster Inc. (BBI: NYSE) allows viewers to receive "video-on-demand" and opens the door to real ease of use in video renting. No more late charges or late night dashes to the video store. Furthermore, the video you want will always be available. The next generation of interactive TV is arriving shortly.
 TiVo also signed a deal with Liberate Technologies (LBRT:Nasdaq). Those of you who are invested in Zi Corp. (ZICA: Nasdaq -- up 166%) know Liberate as a company that penned a deal to use Zi's software for Liberate's set-top boxes.
It's all coming together
Liberate is partially owned by AOL and has been a market darling of late. TiVo and Liberate will develop a new product which they hope to sell to the networks in North America in the second half of 2000. Both of these companies will also be involved in delivering America Online's AOLTV later this year.
And to eliminate those pesky network-types from causing trouble, AOL decided to buy Time Warner for US$184 billion. You can further understand why AOL bought Tegic, Zi's competitor, late last year.
This market is heating up, and as soon as someone starts looking to compete, Zi will become a likely beneficiary. Taipan will look for more plays in this market and keep you informed in upcoming issues.
Time to book 56% profits from Indonesian Telekom
Sell Indonesian Telekom above US$11. Lock in 56% gains in three months.
In the October issue of Taipan I recommended that you buy Indonesian Telekom (TLK:ADR:NYSE) below US$7.50 as a psychological play based on the East Timor crisis. That crisis has now passed.
Furthermore, Y2K fear has dissipated. TLK is now trading at US$11.75. That's a gain of 53% in three months -- not too shabby. The political situation in Indonesia remains unstable, and it is never a good idea to hang on to this type of play once it reaches the top of its trading range. Pigs get slaughtered, as they say.
Initially, my target price was US$14.50 in 14 months. However, the chance of civil war in this conglomerate island nation is always present. I don't believe that the risk is worth the additional two points. Suffice it to say that Taipan made the correct call. It's time to take profits.
In addition to his duties at Taipan, Chris DeHaemer is the editor of The Hammer.
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