DRIV (DIGITAL RIVER). Get in on internet IPO. Message Board

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Technology Stocks : DRIV (DIGITAL RIVER). Get in on internet IPO.

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To: Lundens who wrote (2892)	2/21/2000 12:34:00 AM
From: StockMarketMaven	Read Replies (1) of 3198

US Bancorp Piper on DRIV Just got the latest Feb. 10 report from Piper Jaffray who reiterated their Strong Buy rating on DRIV. Here is the full text from the report: Digital River?s e-business division goes golden with Coors contract. Digital River announced this morning, January 10, the signing of Coors Brewing to its new e-business service called E-Channel Supply Network System. This system will automate the ordering and marketing of promotional materials for Coors? distributors and field sales partners. The savings alone from eliminating physical catalog production will exceed $500k for Coors and with other significant cost savings through more efficient processes. ú E-business momentum is building. The Coors announcement follows three other e-business customer announcements earlier this week including TDK and Plantronics. The importance of signing Coors is the credibility of adding another Fortune 500 reference account to existing e-business customers like Hewlett Packard and 3M. We believe that this growing list of premium customers will drive Digital River?s rapid growth as they help the Company close the growing number of deals in its pipeline. ú Developments to watch: The Company is rapidly building up their infrastructure for the E-Business in 1H99 as they boost their sales & marketing while developing the latest version of the core system, Commerce Network Server, with e-business and other functionality. The release of the new version, the appointment of an e-business division head, and increasing numbers of new customer signings in Q2 will demonstrate the strength of Digital River?s positioning as a broader e-commerce outsourcer. ú Attractive valuation. Digital River lacks any direct comps, but e-commerce transaction processor CyberSource Corp. (CYBS-#) and BroadVision Inc. (BVSN-#) trade at around 30 times and 50 times C00 revenues, respectively. With every step of progress towards the broader opportunity of e-commerce outsourcing we see DRIV shares abandoning their 5x multiple for much higher ground. Meanwhile the network effect of the software business is in full steam as this annuity-like business continues to expand. SMM

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