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

To: Jim B who wrote (5148)	12/10/1999 1:37:00 AM
From: 2MAR$	Respond to of 5529

sounz purty dull... BUT WE CAN GET IT CHEAP!!!

To: Jim B who wrote (5148)	12/10/1999 10:28:00 AM
From: Jim B	Read Replies (2) \| Respond to of 5529

eBenX article and pro forma information eBenX: A Healthcare Standout While there have been many online healthcare IPOs, there are still some gems. After all, the market for healthcare is $1 trillion per year in the US, so there is definitely room for much opportunity. In fact, healthcare expenditures are expected to double by 2007. One company worth looking at is eBenX, which stands for the Benefit Exchange. The lead underwriter is Robertson Stephens and the proposed ticker symbol is EBNX. The offering price is $20. The company is a business-to-business player in the healthcare industry, providing the infrastructure to link employers and health plans. Of course, the health benefits industry is huge, representing $600 billion in services and payments in 1998. Before the 1980s, employers purchased healthcare benefits primarily through single providers. But with the rise of managed care, employers now have the ability to purchase from a variety of sources. For example, there are over 700 licensed local health plans in the US. In fact, a Fortune 500 company deals with an average of 30 different plans. Unfortunately, the average cost of employee healthcare will increase 7% per year. Thus, companies have an incentive to find cost-savings. But this is good news for eBenX. The company?s core technology is called BEN-NET, which is geared to the demands of Fortune 1000 customers and integrates with many complex legacy systems. Basically, the technology allows for standardized data formats, which provides for more efficient transmission of information and payments. With the software, employers and health plans can do such things as: proposal requests, eligibility management, online enrollment, rate quotes and so on. eBenX also provides high-end consulting services. The company has incurred losses every year since it was founded in 1993. Losses in 1998 were $1 million and as of the first nine months of 1999, losses were $2.7 million. The accumulated deficit is $4.9 million. Revenues are strong. The company had $11.7 million in revenues so far this year, compared to the same period last year of $6.7 million. A big part of the increase came from a deal with Bell Atlantic and an expansion of an existing agreement with PepsiCo. The company plans to not only expand its services to its Fortune 1000 customers, but is also intends to enter the mid-size employer market. So far, the company has been carving a strong leadership position and with the money from the IPO, should continue to execute on its business plan. EBenX EBNX pro forma IPO Shares offered 5 million Price target/actual $20.00 Shares out 15 million IPO market cap $300.00 less working cap $61.80 plus LTD 0 Enterprise value $238.20 1999 Revenues $11.70 1999 Losses $3.00 Annualized rev. $15.60 eBenX Revenue multiple 12 Rev. multiple enterprise 8 ps... i wonder if FMKT might not open up over $150.. it looks great too.. but even at $100 it'd be pricey for me. so for alternative B2B play.. I'm thinking EBNX.. but we'll see