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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: LLCoolG who wrote (667)	6/29/1999 2:08:00 PM
From: Lucinos	Read Replies (1) \| Respond to of 3664

Even though it might be a rumor triggered breakout, it still appears as a typical technical breakout on the chart. Lucinos

To: LLCoolG who wrote (667)	6/29/1999 3:13:00 PM
From: William F. Wager, Jr.	Respond to of 3664

Dow Jones Newswires -- June 29, 1999 DJ TIP SHEET: Driehaus: Many Ways To Invest In E-Commerce By Joelle Tessler NEW YORK (Dow Jones)--Meighan Harahan, assistant portfolio manager of Driehaus Capital Management's Driehaus Mid Cap Growth Fund, has found plenty of ways to invest in the explosive growth of Internet commerce beyond buying the risky names that everyone associates with online retailing. Wall Street has been mesmerized by the pure-play electronic retailers that are selling everything from books to airline tickets over the Internet. But while stars like Amazon.com Inc. (AMZN) and Priceline.com Inc. (PCLN) have captured much of the spotlight and the media attention, Harahan also sees opportunities in companies that are not stereotypical online-only merchants. The Driehaus Mid Cap Growth Fund, which is open to institutional investors and has about $1 billion in assets, invests in aggressive growth companies with market capitalizations of between $1 billion and $5 billion. Although the fund is a diversified one, Harahan said she finds many ideas in the technology, health-care and biotechnology sectors since she looks for companies with accelerating earnings and revenue. In the technology area, one of Driehaus' favorite picks is CNET Inc. (CNET), which is among the top 15 holdings in the Mid Cap Growth Fund. By offering extensive news and information about the technology industry and high-tech products, CNET's Web site has become a favorite destination for consumers in the market for a new PC. The company is therefore able to charge computer retailers and vendors of other technology products lead fees for directing interested customers to them. As a result, Harahan believes CNET is emerging as "a big beneficiary of electronic commerce" even though the company does not in fact does not sell products itself. "They aggregate buyers and sellers," she said. "It is a very unique business model." Harahan noted, in fact, that this is the same strategy that has made eBay Inc. (EBAY) so successful. Although eBay does not sell any products itself, the company has become wildly popular by providing a marketplace where buyers and sellers can come together. Harahan believes Circuit City Stores Inc. (CC) will be another big beneficiary of the electronic commerce boom. The company expects to have more than 700 stock keeping units for sale on its Web site by July and more than 1,000 by Christmas, she said. Although many investors fear that bricks-and-mortar merchants stand to lose market share as electronic commerce becomes more accepted and more popular, Harahan believes Circuit City's offline presence is actually a major advantage. That's because many consumers who buy consumer electronics online still prefer to pick up their purchases in a retail store rather than have them shipped to their homes. And once these consumers are in the store, they may make additional purchases, she said. Harahan also believes many companies will benefit indirectly from the growth of electronic commerce by providing the software, equipment and other technology needed to make online retailing possible. These include companies that provide Internet connectivity and host Web sites for electronic retailers, such as Exodus Communications Inc. (EXDS) and AboveNet Communications Inc. (ABOV). Data networking companies that make the equipment used to build the infrastructure of the Internet, such as Cisco Systems Inc. (CSCO), will also benefit. And as the Internet becomes ubiquitous, more people will access the Web through non-PC devices like cell phones and 3Com Corp.'s (COMS) Palm Pilots, Harahan predicts. This, she said, will drive growth for companies that make the equipment that will make this possible, such as cell-phone maker Qualcomm Inc. (QCOM), and companies that provide wireless connections, such as Sprint Corp. (PCS). -