From the BBRS Web Report out today
internetstocks.com
eBusiness Update - Eric Upin - eric@rsco.com
FROM THE B2B PLAYBOOK: INVESTOR APPETITE ACCLERATING - FUELING BIG
GAINS
The B2B eCommerce group now totals $50 billion in market cap - as
investors increasingly focus on B2B names. The space is up from $1
billion on January 1 and $21 billion on September 1. This week alone,
$9 billion in market cap was created. Several stocks continued to
demonstrate strong momentum, delivering significant returns again this
week. PurchasePro.com (PPRO), VerticalNet (VERT), Chemdex (CMDX),
Getty Images (GETY), Commerce One (CMRC), and Internet Capital Group
(ICGE) were up 66%, 56%, 52%, 49%, 25%, and 18%, respectively. The B2B
group as a whole outperformed the indices, gaining 29% for the week.
As we have been saying for the past several weeks, we are very bullish
on the B2B space - as we believe it will be one of the most compelling
investment opportunities. In our opinion, investors are flocking to
these stocks because they are beginning to recognize B2B's potential
to be the next major growth area of the Internet. We believe the B2B
space represents new markets, new models, new players, and the
creation of very large, durable franchises.
Last week we delivered a presentation on the B2B space to members of
the venture capital community. To download this presentation, which
includes a general overview and our thoughts on the space, please go
to the Special Events section of internetstocks.com.
ICG IS OUR #1 PICK AND FAVORITE NAME IN THE B2B SPACE, EVEN AT THESE
LEVELS: We regard ICG as a franchise B2B eCommerce player and a call
option on the entire space. The company has acquired some of the best
properties on the Monopoly board, in our view, with a portfolio of
more than 40 companies targeting B2B exchanges and eCommerce
infrastructure.
The company reported Q3:99 results on Thursday, November 11.
Highlights of the quarter included the addition of four partner
companies, bringing the total to 39 at the end of the quarter; $29
million in acquisitions and financings; a growing number of market
makers in the portfolio, representing 22 of ICG's 39 partner
companies; several significant additions to the management team,
include Sam Jadallah, former vice president of worldwide enterprise
sales at Microsoft and Todd Hewlin, a former partner and co-head of
McKinsey Consulting's eCommerce practice; and the opening of an office
in London, marking the official launch of a European initiative. |
