B2B comments from Yahoo thread......Balance sheet for ICGE, must read
by: options888 4/3/00 3:15 am
Msg: 22030 of 22036
Any long or short should read below.
Folks that bailed on ICG because of the earnings and outlook either
dont know what they owned in the first place or were just dense. Anyone who dumped ICG will probably regret it in a few weeks.
ICGE raised 1.4 Billion in cash with secondary offering of 8.2 million shares at 108. This allows ICGE make more investments. ICGE is also aquiring emerging B2Bs with company stock and using cash sparingly. So why would insiders sell at will and depreciate ICGEs stock value. That is suicide, aint going to happen or last.
ICGE revenue plus interest income was only roughly $22 million last quarter. This quarter, ICGE will have interset income of over at least 120m million from their investment in Ariba, this is public information, no doubt. ICGE will literally blow out earnings this quarter. ICGE got slightly hammered after a lost of $0.09 last quarter but quickly recovered until these last two weeks. Earnings is not important to incubators such as ICGE or CMGI, as they are not expected to make money. So, if their is anykind of earnings from ICGE, that will be huge, and this quarter will be it.
The big downside to companies such as ICG is that investors have no clue
how to evaluate performance without estimates. ICG and other Internet
incubators are basically mutual funds for risk takers.
Investors should watch the revenue of ICG's
network of companies. As ICG's network matures, revenue growth should
balloon.
On a pro-forma unaudited basis, the aggregate revenues of all of ICG's
partner companies grew about 250 percent, from $41 million in the fourth
quarter of 1998 to $143.5 million in the fourth quarter of 1999. The company is worth the sum of its parts. The key thing is
that ICG makes more big investments and takes its partner companies
public." This quarter, ICGE has brought EMerge and Onvia public with nice results.
So is ICGE a good investment, from what I can figure out, a lot of how ICGE trades depends on upgrades, downgrades, and the B2B sector in general. For the past 2 weeks, B2B is a little out of favor, however, this sentiment will change quickly with earnings this quarter. B2B will do very well these coming weeks and months. |
