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To: Bruce Cullen who wrote (1142)	10/24/1999 6:30:00 PM
From: bobgh	Respond to of 1412

Bullish article on this group..... Sunday October 24, 6:00 pm Eastern Time IPO VIEW-Recent issues shine, boost new deals NEW YORK, Oct 24 (Reuters) - Initial public offerings looked like market darlings last week with recent new issues among the top point gainers, while some established blue chips like IBM Corp. (NYSE:IBM - news) took a beating. The world's largest computer maker saw its stock slide after an earnings warning as some of its largest customers had paused to fix old equipment instead of buying new machines ahead of Year 2000. ``In contrast to the Y2K concerns that affected IBM, the other side is that spending by businesses on the Internet and e-commerce infrastructure, including software, hardware and networking, appears to be strong and non-Y2K vulnerable,' said Jay Tracey, portfolio manager at Oppenheimer Enterprise Fund. He underscored that this boosted the shares of recently-public Internet infrastructure firms, as well as the prospects for those in the initial public offering pipeline. The explosive growth projections for companies that build the Internet and provide e-commerce enabling technology continue to draw investors. ``Blue chips are judged on earnings and their market share. Brand new new issues are measured entirely on future potential and the promise of a brave new world,' said Gordon Anderson of Hoover's Online. ``It's a lot easier to rationalize paying through your nose for the promise of something great when you can't look at historical numbers.' Industry watchers said positive results from these types of companies were already supporting IPO candidates in these sectors. Internet services consultant firm Viant Corp.(NasdaqNM:VIAN - news), which went public in June, posted a surprise third-quarter profit and moved quickly higher. Vignette Corp.(NasdaqNM:VIGN - news), an Internet software maker that debuted in February, also rose after posting strong revenue growth in the third quarter. Computer networking firm Foundry Networks Inc. NasdaqNM:FDRY - news) saw its quarterly profits top estimates, kindling the already-hot flame under networking new issues. ``It's pretty evident that the infrastructure guys are absolutely the benefactors from the growth of the Internet,' said Todd Raker, an analyst at Credit Suisse First Boston. ``That sector is going to continue to see the valuations. Fundamentally, investors are looking for companies that have a very good competitive position in a high-growth market.' He added that he could not recall any situation where a recently-public infrastructure firm has missed market consensus forecasts. Investors are betting that the Internet is bound for enormous growth, with the only sure thing being that those building the Internet are going to benefit, analysts said. ``Overall, as for small-cap performance, the only areas that have done well this month are technology and telecommunications,' said Steven DeSanctis, director of small-cap research at Prudential Securities. The week's offerings lack some of the cache last week's deals, such as Martha Stewart Living Omnimedia Inc. (NYSE:MSO - news), but there are a couple of anticipated deals. One of the few Internet software firms slated to debut is Viador Inc., which plans to sell four million shares in a range of $9-11 through Bear Stearns. Industry watchers also expect Akamai Technology, which provides global delivery service for Internet content that improves Web site speed and reliability and protects against Web site crashes due to demand overloads, to be well-received. ``Akamai is an early mover in the space and it has inked deals with many prominent players,' said Zia Daniel Whittaker, an analyst at Jupiter Communications. It is slated to offer 8 million shares in a range of $16-18 through lead underwriter Morgan Stanley Dean Witter. Spanish Broadcasting System Inc., the second-largest Spanish language radio broadcasting firm, is expected to receive a solid welcome, given the success of Radio Unica Communications Corp. (NasdaqNM:UNCA - news) last week. The Miami-based firm plans to offer 22.35 million shares in a range of $15-17 through Lehman Brothers. biz.yahoo.com