SharkJumping

Upon receiving a note from the Chairman of Digital Music Group correctly pointing out a significant error in my market cap calculations, I need to issue a Correction to the previous post.  Given the complexity of the merger of Digital Music International and Rio Bravo to form Digital Music Group, I did not correctly take into account the elimination of the vast majority of the original Preferred Shares of Digital Music International when DMG was formed - therefore, the correct market value of the merged company is not $270M, but is approximately $75M.   The rest of the post still stands as to the overvaluation issues with the offering, but the ratios of valution to sales, and employee value to sales are clearly lower than in the previous post - I regret the error.