Finally,ROWE has come out of a long basing pattern..Internet stocks of various market caps rallied in the afternoon, with many
turning morning slumps into gains for the day. RoweCom (ROWE), however, opened
higher due to news the B2B provider of e-commerce solutions for purchasing and
managing the acquisitions of printed materials was buying UK-based Dawson
Information Services for $56 million in cash and stock. Trading in RoweCom
picked up steam throughout the session, which closed up 5 5/16 at 24 7/8. "IMHO
it is because the 'business model' is boring to the 'internuts' and today's
'investor(?),'" said MichaelBrennan to bofus1 as reason for the stock's
precipitous decline this summer. "This stock is a 'long-term' hold and will
return exponential returns. When the earnings hit in 2/2000 and the numerous
analysts upgrade the stock, the 'herd mentality' of today's 'investors(?)' will
treat this stock like an Amazon.com (i.e. the 'internuts' will enter). Remember
the 'mentality' of today's 'investor(?)', " MichaelBrennan said in conclusion.
"I want it NOW and I want it to be FANTASTIC. Long term is the time it takes to
execute a trade. Just hang in there..." .......RoweCom (ROWE: news, msgs) shares increased 5 5/16, or 27
percent, to 24 7/8 after agreeing to acquire U.K.-based Dawson
Information Services Group, one of the world's largest for about $56
million in cash and stock. The deal is expected to add more than $350
million in annual revenues to RoweCom.
RoweCom serves organizations with intensive knowledge requirements and high-volume purchases. The
publicly held company (Nasdaq: ROWE) is headquartered in Cambridge, Mass. and has offices in London,
Ontario; Montvale, New Jersey; and Brisbane, Australia.
RoweCom focuses on knowledge intensive industries such as professional services, financial services, health
services and high technology. RoweCom's clients include industry leaders such as PricewaterhouseCoopers,
Arthur Andersen, Ernst & Young, KPMG LLP, Prudential Securities, Charles Schwab (NYSE: SCH), Dun
& Bradstreet (NYSE: DNB), First Chicago, John Hancock, BASF (GF: BAS), Hewlett Packard (NYSE:
HWP), Owens Corning (NYSE: OWC), First Union (NYSE: FTU), Aurora Healthcare and Johns Hopkins
University. RoweCom also has an impressive partner list that includes barnesandnoble.com (Nasdaq:
BNBN), NewsEdge (Nasdaq: NEWZ), Ariba (Nasdaq: ARBA), Commerce One (Nasdaq: CMRC) and
Sun-Netscape Alliance.
International expansion is essential to the success of any e-commerce company," continued Dr. Rowe. "In
Western Europe, revenues generated by e-commerce are expected to grow from approximately $5.6 billion
in 1998 to $430 billion in 2003, the bulk of which will derive from business-to-business transactions. With
95% of all UK businesses online and France and Spain rapidly joining their lead, RoweCom is well
positioned to take advantage of the growing need for a Web-based solution to knowledge management.
David Alschuler, vice president, e-Business and Enterprise Applications of Aberdeen Group, Inc., a leading
industry analyst, commented, "In 1997, $120 billion was spent on knowledge resources in the U.S., with
international markets accounting for two to three times that amount. RoweCom has a great opportunity to
rapidly penetrate these international markets as a first mover with its e-commerce platform."
"Shorts better run while its not suffocating.....
New York, Sept. 16 (Bloomberg) -- RoweCom Inc., one of the top online providers of books and journals,
expects to increase its revenue 20-fold by acquiring a unit of Dawson Group Holdings Plc of Britain,
RoweCom Chief Executive Richard R. Rowe said. ''This is a 20-fold increase'' in sales, Rowe told the
Bloomberg Forum. Fourth-quarter sales of RoweCom, including Dawson Information Services Group,
could reach $290 million, he said. " |
