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Technology Stocks : garden.com IPO (GDEN)

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To: molly who wrote (50)10/25/1999 7:12:00 AM
From: Susan G  Read Replies (1) of 87
 
GARDEN.COM - A VALUE-ADDED SPECIALTY PLAYER BLOOMING - Last week we
initiated coverage of Garden.com with a Buy rating. We believe
Garden.com was ahead of the curve in identifying the attractive
online niche market for gardening products and is emerging as the
leading destination site for content, commerce, and community.
Gardening is one of the fastest growing and most popular leisure time
activities across a wide range of consumer segments, most notably
baby boomers, who are increasingly spending time and money on
gardening as they approach retirement. In addition, we believe
Garden.com's affluent customer base could prove attractive to
marketers and longer-term could result in significant sponsorship
revenues. The real key, in our view, to Garden.com's business model
is the company's elaborate grower network that is linked through a
proprietary extranet. We believe these supplier relationships
strengthened by particularly rich content create significant barriers
to entry. Over time, we expect the company's specialty store
environment coupled with sponsorship opportunities to support solid
gross margins pointing to a profitable business model. We expect
Garden.com will be a beneficiary of increased investor focus on
differentiated online retailers with higher gross margin levels to
support brand-building initiatives.

From Keith Benjamin's Web report e-mail
internetstocks.com
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