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To: steve harmon - analyst who wrote (3378)	12/20/1999 3:34:00 AM
From: mark cox	Respond to of 4337

Steve, any possiblity of ITRA - Intraware making your top 10 list? If you haven't seen the Street.com article on ITRA, in it the CEO Peter Jackson stated: "A couple of billion [dollars] in sales a couple of years from now wouldn't be ridiculous," says company president and CEO Peter Jackson, who says profitability is about two years away. That was quite a statement seeing as how they presently have TTM revenues of $60 million. That article goes on to mention that ITRA has 6 new deals coming out by the end of January, the one with CMRC should be announced today with IWOV next week and 4 more next month. They have also recently signed on Oracle as a customer according to their website. This has not been made public in a press release yet that I am aware of. Their margins are rising rapidly and will continue to do so as their stated goal is to get revenues from eCommerce and services to 50/50 in the near future, up from the current 85/15 . Their services carry margins of over 90%. ITRA's B2B vertical is the IT software market which will grow from last year's $160 Billion to 2001's $262 Billion. They are the first mover in that space, 4 year head start and no direct competition. Jackson stated in a recent interview that they have now met the critical mass formula. They are at the point now where every major manufacturer is negotiating with ITRA to take advantage of what ITRA has built. He also stated that the acquisition of BitSource has brought the opportunity to bring Microsoft, Symantec and Novell into Volume Licensing online. Their customers grew 80% in just two months last quarter. They now have over 6,000 customers and 180,000 IT members. ITRA's valuation is much smaller than the other B2Bs and I do realize that ITRA is a vertical while PPRO, CMRC and ARBA are all horizontals. But ITRA's market is enormous and has no direct competition. Plus as the Street article mentioned, ITRA is becoming the B2B companies' B2B company. Just based on Jackson's prediction of $2 Billion in revenues over the next 2years the company would have to grow at a consecutive quarterly growth rate of 45% for 8 consecutive quarters, or something like 350% annualized. Incredible growth. If they were given even an extremely conservative PSR of 20 that would be the equivalent share price of around $1500 in two years or so. Today it's trading at $59.50 so if Jackson pulls it off we would be looking at one heck of a growth stock. I realize that ITRA will no doubt have to raise more capital over the coming 2 years to fuel that kind of growth so there would be some dilution which would bring that $1500 price down. Interested in your thoughts. Thank you. Mark