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Technology Stocks : Healtheon Corporation (HLTH) -- Ignore unavailable to you. Want to Upgrade?

To: Eric Fader who wrote (291)	11/2/1999 12:10:00 AM
From: lee west	Read Replies (1) \| Respond to of 861

Harmon's opinion of HLTH half way down article. Had to re print the entire article per Harmon's rule. __________________________ e-harmon.com's NetStock! by Steve Harmon ceo of e-harmon.com e-harmon.com the internet investment source ___________________________ Head's Up: Reader Emails Answered & More Before we get started I'd like to point out that all the enthusiasm for USWeb (USWB) and Razorfish (RAZF) hasn't seemed to have caught on yet for Modem Media (MMPT), on a market cap basis. MMPT showed strong revenue results in latest quarter ending September, $21 million, with small earnings. The important part in a growth sector to me is that the revenue was nearly as much as it booked in revenue for the six months ending June this year. Shares have climbed but I think we may be seeing investors realize the increased importance of outsourced marketing and Web ad firms, as Web sites get more complex and as marketing and ads come from more mainstream companies and advertisers. Now let's open the emails: "Hi Steve: I am a great fan of yours and I read your dailies religiously. Could you give me your analysis for BRCD and ANCR? Reply: Your mention of Ancor (ANCR) brings back memories of me sending an email to Marc Andreessen 3 years ago mentioning Fibre Channel solutions. Fibre Channel switches are a key part of the now-hot storage area networks (SANs). Brocade (BRCD) leads the market in revenue but its stock seems frothy to me with a market cap north of $7 billion and $44 million sales the past 12 months. KeyLabs named Brocade the best in its field tests, that's driven the stock to new highs lately. Ancor may have some legs in it despite not scoring as high. The company does make some well-regarded Fibre Channel products. Fibre Channel is a critical part of SANs and I believe SANs may be the future of data storage for corporations. If BRCD drops on market dips then it may be worth a look. Right now I think the thin float drives the stock more than anything -- not enough shares available. --- "Hello Steve, Is FECC a good investment choice? I have 200 shares of NPLS, what are your insights to its potential?" Reply: First Ecom (FECC) processes Internet payments outside the U.S., mostly in Asia/Hong Kong. I like its partners in that region but think the potential for now is limited. Network Plus (NPLS) provides broadband DSL-based voice and data services. Revenues jumped 34% to $69.9 million for first six months of this year while net loss was $14.8 million as it spent to grow sales. NPLS trades near its 52-week low, about a third of its $30 per share high. I think DSL providers may be a bigger story next year and that integrated data/communications could be on the rise. --- "Hi Steve: I have a small investment in HLTH, the stock has taken a hit do you feel it will recover?" Reply: Healtheon (HLTH) may be the next Netscape but without Microsoft coming after it. I eventually see Healtheon becoming the glue for the disparate healthcare areas, tying together medical, insurance, and health ecommerce and information via the Internet. It may take Healtheon 2 or 3 years to realize this but my investment philosophy has always been longer range when possible. I stood by Netscape, Yahoo, CMGI, eBay, Amazon, PSINet and dozens more when they were held in bear esteem. I'll stick by HLTH and check its pulse many times in the next 36 months. --- "Hi Steve, Which 3 Internet stocks do you think have the greatest potential in the new millenium? When will Backweb explode?" Reply: For the three stocks I cannot say yet since I plan to do a top stock alert for the year 2000 in January. Backweb (BWEB) is one I mentioned a few months ago that could awaken next year. I like Backweb's rules-based data delivery and its bandwidth efficiency. There's a lot of business-to-business using Backweb now and I suspect more will be next year. --- "Hello Mr. Harmon, How do you value Red Hat? How do you see their market share and management? Where do you think the stock is headed in the next six months?" Reply: RHAT has been driven by hype since before its IPO. I like the Linux alternative to Windows NT as a network operating system. Red Hat commands about 10% of the overall network OS market and just announced a deal with Intel which will include Red Hat Linux on Intel servers. The problem is RHAT's $6 billion market cap. As I said at its IPO: I believe in Linux the technology opportunity but not Red Hat the religion at these levels. Still true today until I see RHAT at much more realistic valuations. It is freebieware with some tech support after all. --- "Hi Steve! What do you think of the future of AIRONET (AIRO), compared to other competitors? Reply: I believe Aironet is in the right place at the right time, high speed wireless Internet, with revenue that could hit $60 million this year. Related firm Proxim (PROX) may be worth looking at, allows mobile users to connect to company networks through wireless radio. --- "Mr. Harmon, I ordered your book 'Zero Gravity' about Internet venture capital and was wondering when it will be available?" Reply: Should be in stores (and Amazon, barnesandnoble.com or Fatbrain) now. The book warehouses had to get stocked up first. Thanks for waiting.