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Gold/Mining/Energy : Certicom Corporation (TSE:CIC, NASD:CERT) -- Ignore unavailable to you. Want to Upgrade?

To: caly who wrote (2441)	12/4/1999 4:52:00 PM
From: mavenwatch	Respond to of 4913

Internet Stock News article on RSA: Internet Value? Friday, December 03, 1999 7:17 PM by Seth Berger It's difficult to imagine Internet stocks as undervalued but the management of RSA Security (RSAS) certainly thinks that its stock is. After a second look at RSA Security, one might agree. RSA Security is a behind the scenes Internet security company. Many of RSA's technologies are used in other products. Almost every Internet shopper, or Netscape user has used RSA Security's products without even knowing it. RSA Security was formerly known as Security Dynamics and traded under the ticker SDTI. In order to strengthen its brand identity, the company changed its name to RSA Security in September. RSA offers consulting, training and support. RSA's flagship products include SecureID, BSAFE, and Keon. RSA SecureID is a two-factor authentication routine that a client uses to gain access to a corporate information network. In conjunction with RSA's ACE/Server the SecureID offers one of the most robust security solutions for corporations. The ACE/Server is extremely scaleable and allows an administrator to issue thousands of SecureIDs without worrying about server performance. The SecureID technology is used by MCI Worldcom's (WCOM) UUNet and supported by 3COM (COMS), Axent (AXNT), Check Point (CHKP), Cisco (CSCO) and dozens of other companies. BSAFE is a set of development components for developing secure applications. BSAFE is embedded in over 450 million copies of today's most successful Internet applications, including Web browsers, commerce servers, email systems and virtual private network products. BSAFE includes the popular SSL (Secure Socket Layer) technology that enables secure purchases on e-tail web sites. For those investors that like anything-Linux; RSA Security inked a deal for Red Hat (RHAT) to license RSA BSAFE. Robert Young, CEO of Red Hat, said in a prepared statement, "Our use of RSA Security's trusted e-security technologies in our products will help position Red Hat Linux as one of the world's most secure platforms for conducting e-commerce." Keon is RSA's public key infrastructure (PKI) system. It provides for the easy management of digital certificates. Keon permits a corporation to support certificates from various certificate vendors including Verisign (VRSN) and Netscape. Keon can be deployed as a complete PKI system, or a standalone certificate authority. Add-ons and development kits are available to make the system even more comprehensive. RSA has had remarkably good relationships with companies. Nearly all leading software and hardware vendors including Microsoft (MSFT), HP (HWP) and 3Com create products that are compatible with RSA's protocols. Consequently, companies such as GE (GE) have had little difficulties adopting RSA's products. A significant amount of RSA's Q3 revenue has come from its sale of Verisign stock. Verisign is a child of RSA's and was spun-off in 1995. As of September 30, 1999 RSA owned approximately 3.2 million shares of Verisign and about 1 million shares of Trintech (TTPA). This gave RSA cash and marketable securities valued at approximately $669 million or $15.74 per share. Verisign and Trintech's rise in stock price since September 30 has been over $100 per share, and $43 per share respectively. This results in RSA having additional $363 million in marketable securities or $8.54 per share. RSA stock has estimated cash of $24.28 per share, not including ANY of the value of the business, technology, or products. RSA's business has been partially restrained because of government regulation regarding the exportation of encryption software. The Clinton administration has released a draft-proposal to relax the restrictions on encryption exports. The Department of Commerce is expected to releases new regulations by Dec. 15. If the new regulations are favorable, RSA could see considerable upward potential. Investors may not bid up RSA's stock price immediately after the regulations are released, instead RSA may have to release blowout earnings before investors take notice. On October 14, RSA Security announced that it would repurchase up to 4 million shares of its common stock over the next 12 months. In a press release, RSA said, "The company believes that RSA Security's stock is undervalued and continues to represent an attractive investment opportunity. " RSA Security closed December 3, down 1/16 at $39. Article Archive