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Technology Stocks : Internet Capital Group Inc. (ICGE) -- Ignore unavailable to you. Want to Upgrade?

To: Gold Beach who wrote (809)	12/4/1999 7:01:00 PM
From: dsg1828	Respond to of 4187

Relevant Factors Some users have stressed the total dollar value of the B2B market (1.3 trillion dollar market by 2003). However, this figure refers to the total dollar value of all B2B transactions. Companies that facilitate B2B transactions can expect to receive a small percentage of this number. Most businesses will likely pay a small flat fee per B2B transaction, not a large commission. Even if we assume that a commission is paid per transaction, and that the commission is 2% of the transaction, the total value of transaction fees that would be earned on 1.3 trillion would be about $25 billion annually (by 2003). How can ICG alone be worth $21 billion today? Also, keep in mind that the 1.3 trillion dollar figure is very speculative. The market is only worth 35 billion today.