Web Street Securities (WEBS) Message Board

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Non-Tech : Web Street Securities (WEBS)

WEBS 17.37

-6.2%

Oct 31 5:00 PM EST

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To: M. Frank Greiffenstein who wrote (1299)	3/22/2000 8:15:00 PM
From: Doug Coughlan	Read Replies (2) of 1339

The main reason Web Street moved today is that it received a positive mention in Briefing.Com under "story stocks." I should have bought instead of watching it go. 10:43 ET ****** "Web Street (WEBS) 7 3/16 +5/32: The stock isn't Schwab and the brokerage firm isn't Goldman, but sometimes it's worth noting a coverage of a second tier company by a second tier brokerage firm. Today, Pacific Crest reiterated its STRONG BUY rating and $35 price target on online brokerage Web Street. We also feel compelled to mention WEBS because any company that includes More Than a Feeling, Don't Fear the Reaper, and China Grove in its ad campaign has something going for it. The Fox brothers will soon rival Stuart with that song-list. In any case, Pacific Crest made its second upward revision to estimates for WEBS in just the past month. The firm believes that WEBS will benefit from the strength in overall trading volumes and its advertising message. Pacific Crest also notes three other factors working in WEBS' favor. 1) Web Street's international developments point to further upside. 2) Web Street is aggressively developing a broader product menu. 3) Web Street is also an attractive takeout candidate. But ultimately, the key reason for the positive WEBS write-up would appear to be relative valuation. WEBS is currently trading at 2.7x Pacific Crest's 2000 revenue estimate versus an industry average of 5.2. This could be a key positive for WEBS in a sector that has seen few positives on the valuation front of late. Despite a boom in trading volumes since last fall, the online brokerage stocks have languished well off last spring's highs. If this is what happens to these stocks in the best of times, what happens if we see a market correction and a trading volume lull? In this environment, it might indeed make sense to try to make a relative valuation play on WEBS. The $35 price target might be a bit aggressive, but if you like the group, WEBS might be a cheap way to play." - GJ

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