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Technology Stocks : Digital Island,Inc - (Nasdaq- ISLD) -- Ignore unavailable to you. Want to Upgrade?

To: lebo who wrote (31)	7/6/1999 2:39:00 PM
From: Benny Freeman	Read Replies (1) \| Respond to of 1884

thanks. any details?

To: lebo who wrote (31)	7/6/1999 3:05:00 PM
From: djane	Respond to of 1884

Net infrastructure play. I would be really surprised if ISLD agreed to a buyout given their excellent market strategy/position. Based on EXDS, ABOV and USIX valuations (and upcoming hot IPOs of Akamai and Sandpiper), ISLD should quickly reach $60/share or $2 billion valuation. djane

To: lebo who wrote (31)	7/6/1999 8:35:00 PM
From: djane	Respond to of 1884

ISLD value keeps going up. Exodus rises 10 percent on takeover talk By Bloomberg News Special to CNET News.com July 6, 1999, 4:00 p.m. PT Exodus Communications which houses computers that run large corporate Internet sites, rose 10 percent on optimism that it's an attractive acquisition target. Exodus rose 11.75 to 130.5 in trading of 4 million shares, nearly twice the three-month daily average. Earlier, they touched a 52-week high of 139.5. The Santa Clara-based company's shares have risen 42 percent since June 23, when Metromedia Fiber Network said it would pay a 20 percent premium for Exodus' competitor, AboveNet Communications. The market for so-called "server farms" is growing as more companies, like Yahoo and Microsoft decide to have their Web-site computers maintained by contractors like Exodus and AboveNet. "Investors are factoring in AboveNet, which sold for a nice premium and didn't have many of the value-added services that Exodus has," BancBoston Robertson Stephens analyst Rick Juarez said. "The market is recognizing an industry leader." Copyright 1999, Bloomberg L.P. All Rights Reserved. Copyright © 1995-99 CNET, Inc. All rights reserved. Privacy policy.

To: lebo who wrote (31)	7/6/1999 8:41:00 PM
From: djane	Respond to of 1884

More Harmon remarks on EXDS takeover rumors (from thestreet.com) One of the largest point gainers among Net stocks was Exodus Communications (EXDS:Nasdaq). Exodus has been seen as a prime buyout candidate since Metromedia Fiber Network (MFNX:Nasdaq) agreed to buy Internet service provider AboveNet (ABOV:Nasdaq) last month. Exodus closed up 11 3/4, or 10%, at 130 1/2. "I think somebody's kicking the tires on this thing," said Steve Harmon, senior investment analyst with Internet.com. Harmon said the Baby Bells, international telecommunications companies or IBM (IBM:NYSE) would be potential buyers for Exodus. "It's really their business [telecommunication companies] and the future of communications. They're in the business of storing and moving data." Recent Internet IPOs continued to see strong demand as investors attempt to get in on the next big mover. Redback Networks (RBAK:Nasdaq), which provides Net access management systems, closed up 18 5/8, or 14%, at 153 1/8. Digital Island (ISLD:Nasdaq), which sells networking services, closed up 11 7/16, or 54%, at 32 11/16.

To: lebo who wrote (31)	7/6/1999 9:38:00 PM
From: djane	Respond to of 1884

Dow Jones article (after the close). Digital Island's Shares Jump On Strength of Internet Issues July 6, 1999 Dow Jones Newswires SAN FRANCISCO -- Shares of Digital Island Inc., a provider of e-commerce and Internet services, skyrocketed Tuesday on the continuing strength of new Internet issues, particularly among Web-hosting companies, analysts said. In Tuesday's Nasdaq Stock Market trading, Digital Island's stock was up $11.4375, or 54%, to $32.6875, on Nasdaq volume of about 5.3 million. "We are in a strong market for Internet stocks," said David Menlow, president of IPO Financial Network of Millburn, N.J. "And people are looking for product." Thomas Weisel Partners LLC analyst James Linnehan said Digital Island shares are attracting attention because the company operates in the Web-hosting niche of the Internet sector. Web-hosting stocks have gained popularity recently because of their takeover potential, said Mr. Linnehan, who sees Digital Island as a possible target. He said he believes Metromedia Fiber Network Inc.'s bid for AboveNet Communications Inc. in late June laid the framework for future deals in the sector. In addition, Mr. Linnehan said Digital Island's announcement Tuesday of a contract with BidCom Inc. reinforces in the minds of investors the company's ability to gain clients. Digital Island will provide a variety of Web-hosting and network services to BidCom, also based here, a company that supplies custom project management tools to building industry customers via the Internet. Mr. Linnehan said companies want to harness the power of the Internet, but don't want to spend the time and money to build the infrastructure, creating demand for outsourcing-service providers like Digital Island. Digital Island shares made their debut June 29. According to Mr. Menlow, the stock had sellers right out of the gate, which drove the stock to a low of $8.333 from its pricing of $10. Regaining ground later in the day, Digital Island shares settled the first day of trading at $11.875. The following day the stock gained about 51%. Thomas Weisel was one of the underwriters for the company's six-million-share initial public offering. Digital Island spokesman Irwin Greenstein was unable to comment on the stock's activity because of the company's quiet period, which expires July 26. Return to top of page \| Format for printing Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.