NETA and a future IPO?
From the NETA thread:To: Conan who wrote (5729)
From: Neil H Wednesday, Sep 1 1999 7:34AM ET
Reply # of 5730
From thestreet.com
Lighting a Fire Under
Network Associates
By Adam Lashinsky
Silicon Valley Columnist
9/1/99 7:00 AM ET
The last time shares of Network Associates
(NETA:Nasdaq) popped, in July, it was because of
takeover rumors that never materialized. This
week's surge was based on something more
substantial: An upgrade by an analyst who'd long
been negative on the software company. The next
catalyst for Network Associates, however, is likely
to be the filing of initial public offering papers for its
McAfee.com unit.
First, the analyst. Christopher Stix covers
networking products companies for SG Cowen in
Boston. Last year he smacked Cisco
(CSCO:Nasdaq) and Network Associates, formerly
known as McAfee Associates, at roughly the same
time. The Cisco call had its limitations -- as
Network Associates Chairman and CEO William
Larson reminded Stix during a well-attended
conference call then, a shocking putdown by a CEO
to an analyst who follows his company.
The NETA call, however, was more accurate, as
shares of the software maker plunged from more
than 67 toward the end of last year to as little as 10
in April, after the company began unstuffing its
clogged inventory channel.
Stix showed Monday that his former call wasn't
personal, by being the first on Wall Street to begin
recommending Network Associates again. "This is
a cheap software stock," says Stix, who guesses
that investors willing to stick around a year should
able to make money. His price target is 23,
compared to Tuesday's close of 16 7/8. The stock
stood at 15 9/16 when Stix upgraded.
Stix bases his upgrade on better-than-expected
results for Network Associates' antivirus and other
network-management software. The barely spoken
but potentially lucrative boon to the stock, however,
is the expected IPO of McAfee.com.
When CEO Larson started bragging last year about
how McAfee.com would have its own IPO, it
sounded like a
slap-a-dot-com-on-it-and-call-it-an-Internet-company
maneuver. No longer. Network Associates has built
the site into a strong Web company under the
direction of Netscapee Srivats Sampath.
Sources familiar with McAfee.com's plans say the
site will market itself to investors as a consumer
"application software provider," taking advantage of
one of Silicon Valley's latest buzzwords. In other
words, McAfee.com is a place computer users can
"rent" applications like virus scanning software or
programs that suggest ways to clear out chunks of
a computer's memory.
McAfee.com is mum on its number of registered
users and its IPO plans. That's usually a sure sign
an IPO is imminent.
Regards
Neil |
