Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Buying IPOs on the open market -- Ignore unavailable to you. Want to Upgrade?

To: rdmsqito who wrote (4978)	12/1/1999 6:17:00 PM
From: stan s.	Respond to of 5529

Mcafee.com to Benefit From Network Associates Link Tuesday November 30 5:52 PM ET NEW YORK (Reuters) - McAfee.com Corp.'s (NasdaqNM:MCAF - news) foray into the world of public firms is expected to be well received as U.S. investors are drawn to its ties with antivirus software firm Network Associates Inc. (NasdaqNM:NETA - news), analysts said. McAfee, to be spun off from Network Associates, provides computer virus protection kits as well as other security and management products for personal computers online. Network Associates will own about 85 percent of the company after the IPO. It plans to offer 6.25 million shares in a range of $6-$8 through lead underwriter Morgan Stanley Dean Witter. The deal represents about a 15 percent stake in the company. Santa Clara, Calif-based McAfee joins several other spin-offs from well-know technology names, most of which have been well-received by U.S. investors. ''Network Associates is definitely a top company in the anti-virus software area. I think the name is well-know and will certainly add to the IPO's acceptance,'' said Brendan McGovern, an analyst at Standard & Poor's. ''They are also going after an attractive market. As the PC and the Internet becomes more ubiquitous and security becomes more an issue, it stands to benefit.'' McAfee's competitors include Symantec Corp. (NasdaqNM:SYMC - news) and Trend Micro Systems. ''The thing that stands out is their business model (applications service provider, or ASP model) where instead of selling software they are renting it. Their target market is more consumers. All the big guys are moving toward this model,'' McGovern said. ''The more sophisticated consumer that McAfee is targeting will recognize the benefits of the model and will be comfortable using it. They are going after an attractive and large market. There is a lot of room for growth. It should do well.''