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Strategies & Market Trends : Wanted: Long-Term "Strong Buy" Recommendations

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To: Philip H. Lee who wrote ()11/16/1996 1:28:00 AM
From: Philip H. Lee   of 54
 
Netscape (NSCP; 58 5/16, +1 13/16)

NSCP is no longer an overhyped Internet stock. Now, Netscape is for real. It's #1 in intranet technology, and intranets mean substantial profits for NSCP. Intranets allow companies to save substantial dollars by making communication and collaboration more efficient. The much-hyped browser war between Navigator and Explorer is a distraction from Netscape's corporate intranet strategy. That's where Netscape's going to make money, not in giving away free browsers.

Management at NSCP is superb and seasoned. CEO Jim Barksdale built Federal Express from almost nothing into a shipping powerhouse. He also played a major role in transforming little McCaw Cellular into a major cellular telecom player.

Netscape is #2 fastest-growing company in the history of the U.S. Quite an accomplishment for a brilliantly managed technology leader. Guess who was the #1 fastest grower in U.S. history? Compaq.

Competitor Microsoft does require close monitoring. NSCP isn't a stock to buy and hold without paying attention.

Philip
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