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RealNetworks is a great Green Gene stock. With shares selling for below $8, it has $5.40 net cash in the bank. Even more interesting, it owns a 45% share of Rhapsody, a music streaming company. This chunk of Rhapsody is listed on RNWK's books as being worth $10,000,000, but its actual value is closer to $450,000,000. Divide this by the share count of 36 million, and you get $12.50 per share. This plus the cash gives RNWK a liqidation value of almost $18.00 per share. That’s right, if you bought the shares today at $8, and the company were just broken up and sold for parts tomorrow, you would be paid an extra $10.00 per share, gaining more than 120% over your purchase price. This is quite extraordinary. I have never seen anything like this sort of bargain, ever.

But it gets better! RNWK has several other businesses that may soon show profits. One, RealPlayer Cloud, may become huge. It grew from 2 million users in Q1 to 5 million users in Q2 this year. That’s a pretty spectacular 150% quarterly growth rate. It could provide a big bonus down the road.

The founder and current CEO, Rob Glaser, owns 35% of the company, so he isn’t likely to do anything to screw up the stock’s value. For example, recent dilution has been less than 3% a year, which seems tolerable.

Disclosure: needless to say, after discovering this, I bought a large quantity of RNWK.
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