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Microcap & Penny Stocks : FutureLink Distribution Corp. (NASD-OTCBB: "FLNK") -- Ignore unavailable to you. Want to Upgrade?

To: cabernetfranck who wrote (576)	7/9/1999 9:25:00 AM
From: Len Hynes	Respond to of 841

Hi CabernetFrank; Thanks for forwarding the latest news on FutureLink.Here is a brief exerpt on the ASP industry I found at StockGroup,that sort of features FLNK and several other companies in the business.I was a bit disappointed however,that one of the prime mover companies in this industry,Infocast Corp(IFCC-OTCBB) was not mentioned. Here is the article: EXTRA! EXTRA! (Today's Feature Headlines) ***************************************** APPLICATION SERVICE PROVIDERS: Growing opportunities for investors By David Duval The Internet could well become the network of choice for small to mid-sized companies in the not too distant future. The latest Internet-related development to attract the interest of savvy investors is the Application Service Provider (ASP) sector, part of a growing trend amongst e-commerce and other companies to outsource their software requirements. The ASP concept is surprisingly simple and especially makes sense for small and medium-sized businesses that choose not to allocate financial resources to the installation and maintenance of dedicated computer networks. ASP providers host an application portal that allows anyone with a browser instant Internet access to specific applications. Basic applications including word processing, spreadsheets and database are provided for a set price, not unlike telephone service; new technology is employed to host and run the applications from a central data facility and upgrades are the sole responsibility of the ASP provider. Research has shown that outsourcing is 20-40% cheaper compared to internally developed systems so you can expect to see many new companies entering the potentially lucrative ASP field in the coming year. In terms of market potential, IDC Internet Services, an industry research firm, predicts the ASP sector could be worth over $142 billion within the next three years. >From an investor's perspective, numbers like that should produce a huge adrenaline rush because the ASP sector is a relatively narrow field in terms of players. Only a few small-cap companies are actively engaged in the ASP sector, among them Calgary-based FutureLink Distribution Corp (OTC BB: FLNK), one of the founders of the ASP Industry Consortium held earlier this year in Las Vegas. FutureLink recently concluded a number of agreements and strategic investments. One of the more notable ones is an agreement with Microsoft that will allow FutureLink to offer Microsoft's back-office products including MS SQL Server, MS Exchange and MS Windows NT Server on a monthly Server License Subscription basis for at least two years. A week ago, the Company announced the acquisition of California-based Micro Visions, Inc., the leading Citrix reseller and integrator of server-based computing systems in North America. Analysts predict the acquisition will accelerate ASP revenues for the company in the lucrative U.S. market. Today, FutureLink closed up 25 cents at $7.9375 on a volume of 125,700 shares giving the company a market cap of approximately $48 million. Competing with Futurelink in the higher end of the market is USinternetworking Inc. (NASDAQ: USIX) which began trading April 9, 1999 after completing its initial public offering of six million shares at $21 each. (That same day the stock was trading 275% above its offering price, although it has since fallen back to the $41 level which still generates a market cap of $1.4 billion). USi also provides packaged applications to clients from leading software manufacturers but mostly to middle market companies. A number of prestigious investment firms such as Credit Suisse First Boston (the lead underwriter,) Bear, Stearns & Co. and Legg Mason Wood Walker helped place the company's recent offering. In addition to major players such as IBM Global Services (NYSE: IBM), Electronic Data Systems (NYSE: EDS), USWeb/CKS (NASDAQ: USWB) and Oracle Online (NASDAQ: ORCL), mid-tier companies such as PeopleSoft (NASDAQ:PSFT) and Flextronics (NASDAQ:FLEX), with market caps of $4.3 billion and $2.6 billion respectively, are major players in the ASP sector. They closed Wednesday at $17.81 and $55.87 per share respectively. Both companies recently participated in a $21 million financing of Corio Corp, a private ASP that is expected to eventually go public. To access reports relating to this story you may wish to try the following hyperlinks: thestreet.com