Here's why I am looking for great returns from GNET in 2000:
1) CEO Horowitz has always under promised and over delivered. Look for earnings expectations to be easily beat.
2) This year, Internet investors will focus on profitable Net companies. GNET will be shown in the press over an over as a model profitable Net company. CNN's recent profile of GNET on Moneyline was just the first of these.
3) Hypermart will very soon be e-commerce enabled. With over 750,000 small business members, additional profit opportunities are just around the corner. Look for Hypermant to be viewed as a B2B play.
4) GNET soon to look much more like a CMGI. Case in point, their recent pre-IPO investment in CTCH. GNET CEO recently quoted as saying "expect to see additional investments in the double digits." Like CMGI with Altavista, GNET will leverage their existing traffic to their investments.
5) Huge broadband potential via Paul Allen/CHTR relationship.
6) Undervalued relative to its peers.
YHOO - 41,786,000 Unique Visitors with $125B Mkt Cap
GNET - 11,472,000 Unique Visitors with $2.35 Mkt Cap
Mkt Cap/User:
YHOO: $2991 per User
GNET: $204 per User
(Sure YHOO should get a premium, but this is extreme.) GNET is undervalued at current levels.
7) As of 12/15/99 Prudential said GO2NET: Increasing target price to $130; Hasbro announcement highlights GNET's attractive position - continue to rate Strong Buy.
8) More acquisitions to be announced in 2000. As CEO recently put it, "We eat, we sleep, we acquire."
I think the investor community in 2000 will think that GNET says, "We eat, we sleep, we profit."
Here's to another great year in 2000.
Adam |
