individualinvestor.com TALK: Lehman Defends 10 Internet Stocks
individualinvestor.com
Editor: Steve Taub (3/22/00)
Burn, baby burn.
That may be true for many Internet companies, as Barron's pointed out over the weekend. Which partly explains the selloff among Internet stocks in the first two days of this week.
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But, on Tuesday at noon, Lehman sent a brief report to its clients, assuring them that 10 Internet stocks that it follows are just fine. The brokerage said that after speaking with the companies, it is confident that they are funded through at least the second quarter of 2001, and most of the companies are funded beyond that period.
?We have talked with all of our companies under coverage and are confident that there are no near term financing concerns,? the report asserts.
What's more, Lehman thinks the companies will meet or exceed first quarter estimates. As a result, it thinks all of the stocks are undervalued. ?We see upside to the sector at these levels,? the report states.
Which companies? These are the 10 companies that Lehman believes are funded through at least the second quarter of 2001, assuming no additional financing is needed.
Akamai Technologies (NASDAQ: AKAM - Quotes, News, Boards), AppliedTheory (NASDAQ: ATHY - Quotes, News, Boards), Deltathree.com (NASDAQ: DDDC - Quotes, News, Boards), DSL.Net (NASDAQ: DSLN - Quotes, News, Boards), Exodus Communications (NASDAQ: EXDS - Quotes, News, Boards), Globix (NASDAQ: GBIX - Quotes, News, Boards), Digital Island (NASDAQ: ISLD - Quotes, News, Boards), ITXC (NASDAQ: ITXC - Quotes, News, Boards), PSINet (NASDAQ: PSIX - Quotes, News, Boards) and Verio (NASDAQ: VRIO - Quotes, News, Boards).
In fact, Lehman thinks Digital Island is funded through the first quarter of 2002 while Verio is funded through the third quarter of 2002.
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