Anyone want to comment on this one...
Here's the link:
cnn.com
(It's a transcript of the show...not in final form...and I copied and pasted the stuff relevant to NETA down below...but the stuff is towards the end of the show...)
Cheers,
Joanna
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There is a Nasdaq software stock that has virtually collapsed over the past year, but our MONEYLINE regular, "Fortune" columnist Andy Serwer, is here. He's going to tell us why we shouldn't give up on it just yet. Andy, what do you have there?
ANDY SERWER, MONEYLINE CONTRIBUTOR: Don't give up on this one: That's the word on the Street, Stuart. It's a company called Network Associates, a very big software company. They're in the software -- the antivirus software business, protecting PCs and computers. This was a real highflier in the mid- and late-'90s. It changed its name from McAfee.
Stock reached about 67 late last year and then just started to hit the skids. I mean, this thing really took a dive, all the way down to, I think, about $10 a share this spring.
A couple of things happened here. First of all, they had some inventory problems. The Street doesn't like that. And secondly, people started to get concerned -- excuse me -- with Y2K problems.
In other words, if IT managers are so focused on Y2K programs, they're not going to be buying any antivirus software.
So the stock is way down, but a couple of very high-profile value fund managers are starting to stick their toe in the water here with this one.
VARNEY: Is there any kind of hidden value in this stock, anything that most people don't know about as a cause for hidden value?
SERWER: Well, I'm glad you asked, Stuart, because yes, there is. That's why these guys are here.
They have a Web site called Mcafee.com. And it's actually -- I looked: It's the 36th-most-visited Web site today. Now, that might not sound like much. But listen to this: It's in the same neighborhood as CDNow, iVillage and TheGlobe.com -- all independent public companies with market caps well in excess of a billion dollars.
The talk here is that Network Associates could spin off Mcafee.com and greatly enhance its market value.
VARNEY: Real fast -- Windows 2000 comes out soon. Any impact on this one, Network Associates?
SERWER: Absolutely, because when Win 2000 comes out, they're going to have to change the viral -- virus software, which could be a boon to sales for Network.
VARNEY: Andy Serwer, many thanks.
SERWER: Thank you, Stuart.
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