To: ztect who wrote (19550 ) 6/7/1999 7:30:00 AM From: May Tran Respond to of 40688
Let me jump in the middle or Allen and Ztect are going to race each other to the 20K. Not a chance without me in it. Talking of competition, I'm glad this company is over in Germany. I was hoping that they would be talking about PNLK...oh well...they will be....soon.worldlyinvestor.com Global Internet Stocks: A Hot E-Commerce Stock June 7, 1999 6:30 AM EDT By Michael Ward CFA and Mido Shammaa Special to worldyinvestor.com Click here to sign up for free newsletters. Click here to set up your free portfolio. One of the factors that certainly contributed to the spectacular development of the Internet in the United States was the abundant availability of sources of capital for entrepreneurial companies. Nasdaq has not only provided a financing vehicle for many burgeoning companies, but also a way for venture capitalists to cash in on early investments in new technologies. Several countries have been experimenting with markets that would provide a similar vehicle. One of the most successful of these experiments is the Neuer Market in Germany. In fact, the Neuer Market has been so successful that some US firms are considering exclusive listing, completely bypassing Nasdaq. The Neuer Market has been the world's best performing stock market since its creation in March 1997, returning a cumulative 550%. A plethora of technology and software companies on the NM helped dispel the notion that Germany was a "one company wonder" when it came to software. Another important effect is that the success of the Neuer Market is encouraging the development of an equity holding culture in Germany. In developing the International Assets NETDEX, the Neuer Market offered several interesting opportunities. One company that we believe stands especially well poised to capitalize on the spread of e-commerce in Europe is Brokat Infosystems AG, which develops and markets Internet commerce software. Much of Brokat's appeal centers on the relationships that it has been able to forge with European financial giants since its inception in 1994 - relationships that give Brokat a competitive advantage in a very lucrative niche. Brokat has undertaken several strategic initiatives to expand its product base and geographic coverage. The company recently acquired a US cash management software developer, and is now collaborating with one of Southeast Asia's largest banks, DBS, to offer a new e-commerce payment system. It is also expanding online banking services with a German electronic transaction software maker. Brokat is gradually establishing leadership in the banking software market, important as more customers demand complete e-commerce solutions and an international sales and services network. Brokat's organic growth is impressive. It narrowed its most recent quarterly loss by 63%, with quarter-to-quarter sales growth of 46% (double last year's figures). (Note: US investors can not purchase Brokat stock on US exchanges. Brokat trades on Frankfurt's Neuer Market, and can be purchased through brokerage firms specializing in overseas equity markets.) Summarizing the Global Internet Market, the International Assets NETDEX returned -1.1% last week (through Thursday June 3). The Dow Jones Internet Index and TheStreet.Com Internet Index (both domestic indices) returned -10.3% and -6.7%, respectively. Michael Ward is Director of Research and Mido Shammaa is a Research Analyst at International Assets Advisory Corp. Both developed the International Assets NETDEX, the first global Internet stock index. Their Global Internet Stocks column appears every Monday. Johnny