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To: Mohan Marette who wrote (133559)	6/21/1999 2:52:00 AM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

Mohan: The 'Internet's E-conomy Gets Real'...Check out this article: washingtonpost.com Best Regards, Scott

To: Mohan Marette who wrote (133559)	6/21/1999 3:15:00 AM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

~OT~ FYI...IPO VIEW - IPO buyers discriminating in fickle market <<NEW YORK, June 20 (Reuters) - As investors wait for the overall stock market and the Internet sector to make up their mind which way they're moving, the new issues arena finds itself facing an increasingly tough audience. Recent concerns about the U.S. interest rate scenario have taken the U.S. stock and bond markets on a rollercoaster ride in recent weeks, with soaring Internet stocks taking a hit on concerns about precarious valuations. The days when any young company with a connection to the Net could go public and nab a sharp premium at its debut have ended, analysts said. Investors are getting choosier every week. ''More sophisticated investors are holding off (from IPOs). They want a recognizable name -- something where you can look at it and foresee positive earnings within three years,'' said Peggy Farley, chief executive and president of Ascent Asset Management Advisory Services. Until the overall stock market finds a direction and stabilizes, deals may be postponed, said Steve Tekirian, an analyst at Standards & Poor's. The number of deals that don't price on schedule grows each day, and underwriters are more frequently clipping expected price ranges to get deals done. ''Timing is so key for IPOs. Those who can afford to will wait. There has been a lot of rejiggering of deals,'' said Steven Tuen, an analyst at IPO Value Monitor. Some companies are pushing the deals up because they see their window of opportunity closing, while others are trying to get their issues finished before the July 4 holiday, after which the summer doldrums set in, Tuen added. ''A lot of deals are coming to (market) that should not. They are too early, not good enough or are late-comers and that is where we are seeing the poor receptions,'' Farley said. Yet there are exceptions. Many companies that produce technology for Internet companies, such as Viant Inc. (Nasdaq:VIAN - news) and Goto.com (Nasdaq:GOTO - news), have enjoyed solid performances and priced at the top of ramped-up price ranges. ''The market isn't dead. There is still life in it. We are still seeing deals where prices have been increased. The good quality deals are not having a problem,'' said Tom Taulli, an analyst at Edgar Online Inc. This week's menu of IPOs is meaty and diverse, including a large offering from a brokerage and several more Internet services, or infrastructure, companies. ''The no-brainers (for solid debuts) are Ariba, CyberSource, Globespan Semiconductor, Ramp Networks, Software.com and Persistence Software,'' said Vincent Slavin, an analyst at Cantor Fitzgerald, listing a host of technology IPOs. Ariba Inc., which plans to offer 4 million shares in a range of $16 to $18, provides e-commerce solutions for operating resources such as information technology. ''Infrastructure (deals) versus the consumer-oriented deals, which tend to be more hype-related, have done well. Anyone can sell books, toys or financial news on the Web; that's not that hard. In the long run, the infrastructure guys are going to make money,'' Tekirian said. Software.com, which plans to offer 6 million shares in a a range of $10 to $12 through lead underwriter Credit Suisse First Boston, sells software for e-mail systems to Internet service providers. Cisco Systems (Nasdaq:CSCO - news) made an equity investment in the company last year. Globespan Semiconductor, which develops advanced digital subscriber line integrated circuits, is slated to offer 3.25 million shares in a range of $9 to $11. Internet access provider Ramp Networks is slated to offer 4 million shares in a range of $10 to $12. Juniper Networks Inc., which plans to offer 4.8 million shares in a range of $21 to $23, is seen as another hot deal. ''They are ramping revenues substantially. They have all the elements in place,'' Taulli said. ''They develop technology for Internet service providers and these companies are getting bigger and need more sophisticated technology. Juniper appears to be a leader in the area.'' Discount broker TD Waterhouse Group Inc. will offer 20.8 million shares in a range of $20 to $24. There are also a host of more traditional Internet deals, including consumer-direct online travel wholesaler Travelscape.com and Web sites owner internet.com.>>