MANU BUY rec in story.
Business-to-Business E-Commerce Is Enabling the $50 Trillion New E-Conomy, Says Banc of America Securities B2B Strategist Analyst
SAN FRANCISCO, Feb. 7 /PRNewswire/ -- The following is being issued by Banc of America Securities, a member of the National Association of Securities Dealers, CRD number 26091:
(Photo: newscom.com )
With the traditional fundamental business models and maxims under siege, investors should focus on how companies across all industries are embracing the new global "e-conomy" and on the technologies that are enabling the business-to-business (B2B) Internet economy, according to Banc of America Securities' senior B2B e-commerce strategist and Internet & enterprise software analyst, Bob Austrian.
Discussing investment strategies and themes from his "New Business e-conomy report," Austrian stated, "... We estimate the U.S. B2B economy to be at a staggering $50 trillion, which is five times greater than the gross domestic product itself. Given what Internet technology can bring to bear, we believe that every dollar of corporate revenue, and each penny of business expense should be traced through the economy by carefully evaluating all transactions."
Austrian explains that the $50 trillion figure includes all intermediary transactions. It is the cumulative gross value of B2B transactions capturing everything GDP does not, where consumption is the final step, and every penny of revenue is traced.
Austrian made his comments to investors last Friday at the 17th Annual Banc of America Securities Technology Conference, which ran Tuesday, February 1 through Friday at the Ritz Carlton in San Francisco. This year's Tech Week featured 195 presentations from public and private companies representing a broad spectrum of investment opportunities in communications services, computer and peripherals, distribution, networking, semiconductor, software and Internet industries.
"There is confusion by many investors surrounding the valuations, rapid growth and successes of the technology sector in general," says Austrian. "Something really big is going on and we think it is the new e-conomy."
Austrian defines this new e-conomy as a global, electronically networked economy in which business success is largely dependent upon technological prowess and differentiation. It is a frictionless economy enabled and driven by geometrically improving technology. With technology as the primary determinant of portfolio returns today, it is important to look at how this new e-conomy is driving growth, says Austrian.
Austrian says that Banc of America Securities pays particular attention to the business-to-business portion of the economy because it not only represents an enormous food chain, but the market opportunity for B2B is tremendous. Every facet of operations in every business must be re-examined for the innumerable ways in which e-solutions can reinvent business within our new e-conomy, he explains.
"This is an economic revolution, not an evolution," says Austrian. "2000 marks the start of a transformation and a new decade of opportunity where no business practices are sacred and every policy, practice and transaction is subject to review. It is this trend that is dictating the rapid growth rate of this industry."
The investment opportunities are endless in this space, with Internet based e-procurement technologies and non-manufacturing procurement leading the drive, according to Austrian. These companies offer technology that improves processing, allowing customers to gain pricing leverage and financial control, says Austrian. Other emerging investment vehicles are the trading hubs, exchanges or e-marketplaces and enablers. Austrian says that these companies are "on fire" with an avalanche of hub initial public offerings in the pipeline. Finally, Austrian believes that B2B e-commerce systems are driving the B2B e-business needs with front office and back office systems complementing each other.
Among the stocks Austrian recommends are Aspen Technology (Nasdaq: AZPN, $50.00, Strong Buy)[1,2], Ariba (Nasdaq: ARBA, $185.44, Strong Buy)[1], Clarus (Nasdaq: CLRS, $54.50, Buy)[1,2], Commerce One (Nasdaq: CMRC, $159.38, Strong Buy)[1], Digital Insight (Nasdaq: DGIN, $49.44, Buy)[1,2], Manugistics (Nasdaq: MANU, $54.94, Buy)[1], Oracle (Nasdaq: ORCL, $57.81, Buy)[1] and Siebel (Nasdaq: SEBL, $105.56, Strong Buy)[1,2].
Banc of America Securities LLC (BAS), a subsidiary of Bank of America Corporation, is a full-service investment bank and brokerage firm. With principal offices in San Francisco, New York City and Charlotte, BAS employs more than 4,000 associates in offices around the country, and with affiliates, offers capabilities worldwide.
Bank of America Corporation, with $633 billion in total assets, is the holding company for the largest bank in the United States, with operations in 21 states and the District of Columbia.
1. Banc of America Securities LLC currently maintains a market in this security.
2. Banc of America Securities LLC was manager of a public offering for the following companies in the last three years: CLRS. Banc of America Securities LLC was co-manager of a public offering for the following companies in the last three years: DGIN, AZPN, SEBL. Banc of America Securities LLC has performed investment banking or other services for the following companies in the last three years: CLRS, AZPN, SEBL.
SOURCE Banc of America Securities
CO: Banc of America Securities; Aspen Technology; Ariba Inc.; Clarus Corp.; Commerce One Inc.; Digital Insight; Manugistics Group Inc.; Oracle Corp.; Siebel Systems Inc.
ST: California, New York, North Carolina
IN: FIN MLM
SU: ECO
02/07/2000 11:39 EST prnewswire.com |
