Analyst Coverage Initiated for RRRR!!http://biz.yahoo.com/bw/000322/ca_roberts_2.htmlWednesday March 22, 12:23 pm Eastern Time
Company Press Release
Robertson Stephens Initiates Coverage of RRRR with a Buy Rating
SAN FRANCISCO--(BUSINESS WIRE)--March 22, 2000--Robertson Stephens Managing Director and Senior IT Services Analyst Steven Birer today initiated coverage of Rare Medium Group Inc. (NASDAQ:RRRR - news) with a Buy rating. Rare Medium is an Internet-focused company that provides Internet professional services in addition to investing in, developing and operating companies in selected Internet-focused market segments.
``We are initiating coverage of Rare Medium with a Buy rating,' said Birer. ``In our view, the company represents a leader in an emerging investment opportunity: the combination of iBuilder and incubator. Through its incubator and investment services, Rare Medium is breaking away from the headcount constrained growth model typical of most consulting organizations.'
``When we do an analysis of the iBuilder business and value of the company's venture and incubator investments to date, as well as the company's cash on hand, we believe that the company is significantly undervalued,' said Birer. ``In our opinion, the current market capitalization of $4.3 billion conservatively understates the company's value by $1.5 billion to $2.5 billion or more.'
``We believe Rare Medium is well positioned to benefit from the rapidly growing demand for Internet services, a market estimated to grow 57 percent annually from $13 billion in 1999 to $78 billion in 2003,' said Birer. ``With a full complement of service offerings, we believe the company is able to capture a larger portion of clients' IT budgets and generate highly visible, recurring revenue streams.'
``Moving forward, we believe Rare Medium's expertise in emerging services and technologies, including ASP services and broadband technologies, well position the company in some of the fastest growing market opportunities,' add Birer. ``As the services business continues to benefit from exposure to the latest technologies through its incubator and venture relationships, we believe the company will maintain its technological leadership.'
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