Kaufman Bros., L.P. - SBAS "Initatiting Coverage" report - first part
starbase.com
kbro.com
[ 800 Third Ave, 25th floor, NY, NY ]
Sign up for a 30-day free trial - SBAS, 3 page <*.pdf> report (Dec. 10):
STARBASE CORP. (SBAS/NASDAQ) PRICE: $5 11/16 PRICE TARGET: $38
StarBase Corporation, headquartered in Santa Ana, California, offers a complete family of user-friendly software products that enable teams of people to collaborate in the production of Web sites, e-commerce applications, and mission-critical applications. StarBase products are designed to increase the productivity of centralized and geographically remote teams of people that are both internal and external to an enterprise. StarBase software provides the ability to track and manage Web site and other software development activities from a wide variety of functional participants such as programmers, graphic artists, advertising personnel, sales, marketing,
finance, and management.
We are initiating coverage of StarBase Corporation with a STRONG BUY rating and a 12-month price target of $38.
* Convergence of Web site production, e-commerce application development, and mission-critical business applications mandates improved management of the development process.
* Growing complexity of Web site development, driven by e-commerce, creates a huge market opportunity.
* Unique StarBase architecture establishes a differentiated competitive advantage in Web application lifecycle management.
* Internet portal strategies offer extraordinary incremental growth opportunities.
* Strategic marketing and technical partnerships should fuel growth.
* SBAS valuation of 12.7x annualized revenues of $15MM is significantly below peer group average of 55.6x and head-to-head competitor InterWoven at 207x.
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Then 2 1/2 more pages with comments + numbers.
There's no knowing where the stock will go. To my mind the big unknown which no-one foresaw was the market's reaction to the Linux OS and companies that support it with applications software - just look what it did for CORL. With SBAS producing Unix (+ NT, Windows 95) software - market support should be very favourable - and Linux compatible software from SBAS may already be in the works (don't know), and specific platforms were not mentioned in the Nov. 4 News:
"StarBase Announces Product Strategy Targeting Corporate eBusiness Development.
...
StarBase Server, scheduled for delivery by March 2000, is a platform-independent advanced portal repository designed to support the most complex eBusiness environments including best-of-breed application development tools and content-oriented portals.
..."
Their client list is impressive.
Like most - I'm looking forward to what next week (and beyond) will bring.
David :) |
