Shares of online music distributor K-Tel (Nasdaq: KTEL) soared more than 43 percent, gaining 2-9/16 to 8-1/2, on Thursday, after the company announced distribution deals for Looksmart.com, BrandsForLess.com and Prodigy Internet. Despite the gain, K-Tel is still trading at about 1/5 of its all-time highs.
K-Tel stock was last year’s poster child for a fast-rising, fast-fading Internet stock. The company was best known for its box sets of classic music until it announced that it was launching an e-commerce Web site last April. Then its stock ran up furiously and peaked at nearly $40. Later in the year, there were concerns that the company was perilously close to being delisted from the Nasdaq because it didn’t have enough assets.
So does K-Tel have any real value? Well, it’s still bleeding, but it keeps adding major partners. It might not be any better or worse than many Internet stocks, but it’s hard to imagine it coming close to its past heights. Then again, that wouldn’t be much more unlikely than what this stock’s already gone through.