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Technology Stocks : Digital Island,Inc - (Nasdaq- ISLD) -- Ignore unavailable to you. Want to Upgrade?

To: Mao II who wrote (1252)	1/5/2000 5:17:00 PM
From: Spiderman	Read Replies (1) \| Respond to of 1884

True true but lockups should not put such a huge burden on the stock for such a long time. I know we'll be fine eventually, I'm just a little impatient. ISLD is a GREAT company. Long ISLD

To: Mao II who wrote (1252)	1/5/2000 9:33:00 PM
From: Mao II	Read Replies (1) \| Respond to of 1884

Thread: Bear Stearns $200 target, reit Buy, and report. M2 11:58am EST 4-Jan-00 Bear Stearns (Henry, J/Waldorf) ISLD: Reiterate BUY Rating Following Sandpiper Merger * Sandpiper Merger Positions Digital Island Uniquely In The Internet Space. * Relative Valuation Of Digital Island Versus Akamai Is Extremely Compelling. *** We Reiterate Our BUY Rating With A New Price Target Of $200 Per Share. INVESTMENT VIEWPOINT We are reiterating our BUY rating on Digital Island, Inc. following the successful closure of its merger with Sandpiper Networks, Inc. on December 28, 1999. The deal combined Digital Island - a leading provider of global e- business network services - with Sandpiper Networks - a leading provider of global content delivery solutions. The new Digital Island is now positioned to provide a comprehensive array of e-business solutions to corporate and dot com customers alike over a global network that spans 21 countries and consists of more than 1,200 enterprise-class servers. In a marketplace where companies deploying global e-business strategies are forced to deal with issues such as bandwidth cost, consistency, latency, local relevance, reliability, security, and transparency, we see a burgeoning demand for the services that the combined entity will provide. With its full-service portfolio of content delivery, hosting, and intelligent network services coupled with its proprietary TraceWare software and Footprint content routing technologies, the new Digital Island will be a clear leader in enabling the successful global deployment of e-business solutions. In fact, the company already has over 100 of leading corporate and dot com customers including Cisco, Intuit, Novell, E*Trade, CNBC, Mastercard, Value America, Microsoft, and the Los Angeles Times. Having been vaulted forward into a true leadership position in this rapidly evolving space, we view Digital Island as a "must own" name for those investors looking to participate in the unprecedented growth in demand for global e-business, content delivery, hosting, and applications services. We reiterate our BUY rating with a new year-end 2000 target price of $200 per share. VALUATION DISCUSSION We believe that Digital Island presents a highly compelling valuation when compared with the $30 billion enterprise value of content delivery network Akamai Technologies, Inc. We believe that Akamai's significant premium to Digital Island is inappropriate given Digital Island's more complete product portfolio, stronger market position, and more advanced stage of development which it has demonstrated through proof of concept and greater revenue. Whereas Akamai delivers its services only on the edge of the public Internet, the new Digital Island combines similar services on the edges with an advanced, top quality private Internet. Digital Island's Internet Network Services avoid congestion points common on the public Internet through use of the company's proprietary Internet protocol applications network that connects seamlessly with local points of presence in 21 different countries. In light of these elements we believe that Digital Island should sell at parity if not at a premium to Akamai. We note that Akamai is trading at 748x its 2000E revenue of $42.5 million and 289.4x 2001E revenue of $110 million. In contrast Digital Island is trading at less than one-seventh of that valuation, just 101.9x 2000E revenue and 38.2x 2001E revenue, with nearly double the revenue in each year. Investors have show a willingness to pay substantial premiums for the leading player in each sub-sector of the Internet universe. We believe that Digital Island is the clear leader in this space by virtue of its time-to-market advantage, robust product portfolio, extensive global network, and impressive customer base. We hold that the compay sits in the sweet spot of this segment, with its unparalleled c