Remember......Modem Media. Poppe Tyson jumps
Ad firm is lauded by Bear Stearns
By Steve Gelsi, CBS MarketWatch
Last Update: 4:06 PM ET May 21, 1999
NewsWatch
NEW YORK (CBS.MW) -- Shares of Modem Media.Poppe Tyson
spiked up 17 percent Friday after a positive comment about the online
agency from a Bear Stearns analyst.
Analyst Alexia Quadrani said in the May 31 issue
Business Week magazine that Modem
Media.Poppe Tyson shares may move up into the
$45 range from growth in Internet advertising.
Shares of Modem Media.Poppe Tyson added 4
1/8 to 28 3/8.
The rise counteracts Modem Media.Poppe Tyson's
slide in recent weeks.
After its IPO this year, shares hits a high of 55 1/8
on Feb. 4 and a low of 22 3/16 on May 10.
Quadrani told the magazine she expects the company, whose clients
include AT&T and General Motors, to lose 19 cents a share on $58
million in revenues in 1999 but earn 5 cents a share on $72 million in
revenues in 2000.
BancBoston Robertson Stephens analyst Keith Benjamin said in his
Thursday Web report that the company, "remains a solid franchise that
has so far been successful in changing an improving its business model."
Benjamin classified Modem Media.Poppe Tyson as a Web stock that
rose quickly on its IPO only to be overlooked despite a solid
performance.
Another Internet marketing company, Think New Ideas (THNK: news,
msgs), rose 1/4 to 15 amid speculation the online marketing specialist may
be bought by Razorfish (RAZF: news, msgs) or another company.
Adweek magazine said Razorfish "has joined the apparently lengthy list of
suitors" for Think New Ideas, but took its interest one step further by
placing a bid for the New York agency.
Other possible suitors include Modem Media.Poppe Tyson, which is a
unit of True North (TNO: news, msgs) and two unidentified technology
companies, Adweek said, quoting executives familiar with the situation.
Think and Razorfish both are part of Omnicom's (OMC: news, msgs)
Communicade Group, which owns 33 percent of Razorfish and 14
percent of Think.
Steve Gelsi is a reporter for CBS MarketWatch.
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