Company Press Release
Top 20 Internet Plays to Keep an Eye on in 1998
LOS ANGELES--(BUSINESS WIRE)--Jan. 6, 1998--The Internet Stock Review Tuesday announced a list of 20 stocks to
watch for 1998.
The Internet Stock Review additionally announced that it will launch a Web site devoted to the coverage of Internet-related
publicly traded companies. The site will provide direct links to Web sites of these companies, an easy-to-use and -peruse price
and performance listing of Internet-related stocks and commentary from various Wall Street analysts who provide coverage on
these stocks.
If you would like to be advised of the launch of the Internet Stock Review Web site and would like to receive a complimentary
subscription to the newsletter, send an e-mail to indexao@pipeline.com . Place the word ''launch'' in the subject line.
Listed below are companies that the review believes investors should call to request an investor package (phone numbers are
included) and companies whose progress should be monitored. The Internet Stock Review will be following and reporting on
their progress in the coming year.
Alliance Entertainment -- $0.05 (OTC:AETTQ - news)
Alliance is the largest independent distributor of music in the nation. Sales of $500 million and a $2 million market cap.
Compare with N2K. Watch for its emergence from bankruptcy and into the Internet. -- 212/935-6662 --
aent.com
Brilliant Digital -- $5 (AMEX:BDE - news).
Down from $10; the review saw its ''multipath'' movie product -- which enables viewers and game players to change the
outcome of what they are watching midstream -- at the Cruttenden Roth conference and was amazed. First Boston likes it.
Reported earnings of $0.11 in third quarter in November. Relatively unknown. -- 818/346-3653 -- bde.com.au
Computer Access International -- $3.50 (OTC:CPAQ - news).
A rapidly growing acquirer of midsized ($1 million to $5 million) computer outlet and repair stores. Rapidly growing sales of
computers via the Internet division will surprise many. The only publicly traded growth-by-acquisition player in its industry. A
real comer; reported sales of $25 million and earnings of $1.3 million in November. Unknown. One of the review's favorites. --
888/735-0280 -- computeraccess.com
CMG -- $29 (Nasdaq:CMGI - news)
Something like a closed-end venture-capital fund of Internet stocks. Invested $2 million in Lycos the year before it went public,
which is now worth more than $100 million. Invested $1.7 million in Brookline Technology and sold it for $70 million worth of
AOL. These guys are geniuses. Not a household name; Intel just bought under 5 percent. Long-term keeper. One of the
review's favorites. -- 508/684-3600 -- cmgi.com
CKS Group -- $14 (Nasdaq:CKSG - news)
Specializing in Web-based advertising and Web-site design, CKS had a market cap of $530 million one day in early November
and $193 million the next day, when it plunged from $36 to $13. This is still the advertising agency of the future. Interpublic
owns 15 percent. Clients include GM, McDonald's, etc. Reported sales of $133 million, up 51 percent from $88 million last
year during December. Merrill upgraded it in late November after the carnage. The review thinks it's a bargain at less than two
times sales. -- 408/366-5100 -- cks.com
Cybercash -- $13 (Nasdaq:CYCH - news)
Down from $24, it's still not cheap at 55 times sales! But it is everywhere. Wake the review up when it's over. Well known, to
say the least, it traded at $60 in the summer of 1996. -- 703/620-4200 -- cybercash.com
CNET -- $25
The review will go on record saying this is cheap at 12 times sales. This is the NBC of the future. Best Web sites, best talent
and best marketers. Amerindo Advisors (one of the smartest technology investors) just bought 700,000 at $25. If the review
were CBS, NBC, DIS, etc., it would buy CNET out now, before having to pay $2 billion instead of a few hundred million.
Reminds the review of AOL five years back. One of the review's favorites. -- 415/395-7800 -- cnet.com
Go2Net -- $8 (Nasdaq:GNET - news)
Visit its Web site(s) and then decide. The review uses Yahoo! every day and used it every day when it was selling for $10 (now
$60) and didn't buy. Would you use GNET every day? Reported sales of $250,000 for the year and has a market cap of $30
million. An up-and-comer. Not cheap, but the best never are. -- 206/447-1595 -- go2net.com --
metacrawler.com -- playsite.com -- stocksite.com
Guitar Center -- $23 (Nasdaq:GTCR - news).
OK, guitars aren't sexy. But nine-months sales of $205 million (up 41 percent) are, and the review believes Guitar Center will
be a major beneficiary of Internet sales. -- 818/735-8800 -- guitarcenter.com
Interactive Buyer Network -- $0.32 (OTC:IBNL - news)
Operates a business-to-business ''private network'' service for major corporations looking for vendors, and for vendors
looking for major corporations. Charges each $990 per year to subscribe. Has signed up BF Goodrich, Stone Container,
Warner Bros., Disney and 7Up/RC Bottling. Needs to first sign up corporations (thousands), then vendors (tens of thousands).
Thinks it can have 4,250 subscribers by 1998. No one has heard of it. -- 414/966-7691
iMall -- $0.60 (OTC:IMAL - news)
Another cheapy -- but it just raised $20 million in a private placement during December. If this is a penny stock, that's a lot of
pennies. Traded at $4.50 in early March 1997. With 60 million shares outstanding, the review would expect a reverse split.
Check the Web site and then decide. With 18 million hits in October 1997, it should be able to accident itself into success.
Lives a life of obscurity; even its own Web site doesn't mention that it's public. Hello? One of the review's favorites. --
818/509-3600 -- imall.com
InfoInteractive -- $0.60 (Alberta:IIA or IIA.AL)
OK, it's Canadian. But imagine this: You're at home on the Internet (you have only one line). Someone calls you, and a box
pops up on your screen with caller ID. You see the name and can choose ''Take the call'' or ''Have them call back.'' The caller
hears, ''The person you are calling is on the line; he sees you are calling and has indicated he will call you back from the number
you are calling from,'' or ''The person you are calling is on the line; he sees you are calling and has indicated he would like you
to call back in a few moments when the line is free.'' See it live at the company's Web site. As seems to be the norm with
Canadian companies, getting financial information (such as shares outstanding) is like trying to pry a bone from a pit bull. --
800/270-1014, ext. 21 -- interactive.ca
InterVu -- $8.50 (Nasdaq:ITVU - news)
Video over the Internet. Just went public at $9.50 from Josephthal and Cruttenden Roth. NBC purchased 215,000 shares at
$9.50. Product is used by NBC, Sony, ML Baseball, Turner Broadcasting, etc. Unknown. -- 619/350-1600, ext. 144 --
intervu.net
Network Solutions -- $15 (Nasdaq:NSOL - news).
Care to register your domain name? Now here's a company that will grow to $100 million in front of your own eyes. Street
thinks it can earn $0.47 next year. Sales for nine months were $30 million, vs. $12 million. A real comer; one of the review's
favorites. -- 703/742-0400 -- netsol.com
N2K -- $17 (Nasdaq:NTKI - news)
Remember Alliance Entertainment, the old way to distribute records? Well, here is the new way ... $7 million in sales and a
$200 million market cap. Sites include Rocktropolis.com, JazzCentralStation.com, ClassicalInsites.com, DavidBowie.com,
StonesWorld.com, LeonardBernstein.com and allstarmag.com . Just went public; off from $30. Should lose $3 per share this
year -- watch and learn. Strong buy from Unterberg Towbin in mid-December. -- 212/378-5555 -- n2k.com --
musicblvd.com
Omega Research -- $4.50 (Nasdaq:OMGA - news)
Stock charting software. Recently public, it has been ugly, trading down from $11. Has been reporting super numbers, though,
as revenues for nine months jumped 75 percent to $22 million, with pro forma earnings of $5 million. Has a couple of good
friends (though you couldn't tell by the price action) on the street by the names of Robertson Stephens and Hambrecht & Quist.
Unknown. -- 305/551-9991 -- omegaresearch.com
OnSale -- $17.50 (Nasdaq:ONSL - news)
You have to love this one. It seems the only thing better than selling on the Internet is auctioning on the Internet. Sales for nine
months were $56 million, up from $6 million. Going once, going twice ... The review wishes there were a few more publicly
traded companies in the auction business. Quietly ran from $6 to $30 while an unknown and then plunged to $14 when it
became well known, with a secondary from some Wall Street biggies. Once looked rich; now beginning to look cheap at four
times sales. Despite an expected loss of $0.63 per share in the coming year, it has garnered five strong buys on the street. --
415/428-0600 -- onsale.com
Realnetworks -- $14 (Nasdaq:RNWK - news).
Also known as RealAudio. OK, so you're all mad at your broker because he or she didn't get you a piece of this hot new issue
at $12.50, which ran to $19. Well, guess what -- it's baack. This is the undisputed leader (at least today) in ''hearing'' things on
the Internet. So stop crying and do something about it. Goldman Sachs likes it; the review will watch. -- 206/343-1825 --
real.com -- realplanet.com
Scoop -- $0.87 (Nasdaq:SCPI - news)
Well, there had to be a few casualties somewhere. Just when you thought you were free of earnings concerns, Scoop reports a
51 percent sales increase for nine months, and it trades down. Public at $4.50 through the Shamus Group (who?), it traded to
$7 and then submerged to under a buck. The review is still not convinced it has a viable business plan at $29.95 per month to
clip articles, but Will watch. Cheap by Internet standards. -- 714/453-8383 -- scoop.com
USWEB -- $11 (Nasdaq:USWB - news)
Probably the most ambitious Internet company -- you build a Web site and USWEB will keep it going. And USWEB means
for everyone. If USWEB can pull it off, it'll be a billion-dollar company. In the meantime, while sales have increased from
$511,000 to $8 million, it is bleeding red big-time, which is expected. Combine that with a $332 million market cap ... and the
review will just watch. It already has a nationwide presence. -- 408/987-3200 -- uswebla.com
To be placed on the complimentary list for The Internet Stock Review, contact Roland Perry at indexao@pipeline.com; write
Perry & Co., 468 N. Camden Drive, Suite 200, Beverly Hills, Calif. 90210; or call 310/285-1778.
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The information contained herein is provided as an information service only and is based upon sources deemed reliable but not
guaranteed by The Internet Stock Review. Past performance of previously featured companies does not guarantee the future
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