NBCi -- The Rebuilt of a Worldwide Brand
NBC Internet (NBCI @$12 9/16) operates a variety of Web sites, including search portal Snap and homepage host Xoom.com, as well as the broadcaster's NBC.com site and a network of sites offering local information. Attracting about 16 million users each month, NBCi's sites provide information, entertainment news, broadband and streaming content, and services like free e-mail and personal finance tools. The company makes about 55% of its sales from advertising, with the rest coming from e-commerce sales and direct marketing services. NBC (a subsidiary of General Electric) owns about 44% of NBCi (with an option to bring its stake up to 54%), and CNET Networks owns about 11%.
I have great confidence in the new CEO, Mr. William Lansing, who was hired as the new CEO in late March this year, and had served as VP of corporate development at General Electric and was one of the few members of GE chief executive Jack Welch's inner circle.
Lansing, who started his career as a securities lawyer, made his name at Prodigy, where he served as COO and helped the online service buy itself out from Sears and IBM. In 1998, he joined e-fulfillment and direct marketer Fingerhut, where he helped the business grow to a $2 billion venture and oversaw the company's acquisition by retailing giant Federated Department Stores.
Under Mr. Lansing's leadership, NBCI is undergoing a thorough integration of its web properties into one worldwide recognized brand name, NBCI. The stock is currently trading near the low of its 52-wk range of 106 - 12, and has US$6 per share in cash. I recommend its purchase with a price target of US$50 per share in 12 months.
pcyhuang
huangcapital.com |
