Cyberian Outpost Rises 74% on Internet Sales Venture (Update1)
New York, Nov. 23 (Bloomberg) -- Cyberian Outpost Inc. shares rose 74
percent as it joined eight other Internet-only retailers to open
ShopperConnection, an online shopping mall that links member stores and
services.
The shares of Kent, Connecticut-based Cyberian, which sells computer
products on the Internet, rose 10 5/8 to 25 in trading of almost 9
million, almost 29 times the three-month daily average. It had the
second-biggest gain on U.S. markets.
The Web site, shopperconnection.com, is expected to increase customer
traffic for members while lowering their marketing costs. It's designed
to make the retailers more competitive against larger rivals such as No.
1 online bookseller Amazon.com Inc., which began selling music this year
and videos last week. ''The network will enhance members' ability to
convert impressions into revenue,'' said Steven Horen, an analyst at
NationsBanc Montgomery Securities Llc, who rates Cyberian a ''buy.''
He added that Cyberian's rally today is also supported by the company's
ability to meet analysts' earnings expectations, whereas other
Internet-stocks have fallen short of estimates.
Other members include eToys, a closely held toy retailer; Internet
video-seller Reel.com Inc., which is owned by Hollywood Entertainment
Corp.; Datek Online Brokerage Services Corp., the fifth-largest U.S.
online brokerage; and CDnow Inc., the biggest Internet music retailer.
The shares of Wilsonville, Oregon-based Hollywood rose 3/4 to 21 1/16
while shares of Jenkintown, Pennsylvania-based CDnow rose 1 5/16 to 13
1/2. Amazon shares rose 37 3/8 to 218.
ShopperConnection customers will get separate bills from each retailer,
though the companies are exploring a program that would allow customers
to set up accounts that could be used at all member stores.
quote.bloomberg.com.
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