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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: shamsaee who wrote (18128)	2/16/2000 3:08:00 PM
From: Mathemagician	Respond to of 54805

Here is the substance David Zimmer's detailed (and optimistic) post regarding that very question on the INTF thread: Message 12882499 We are dealing at Internet speed here folks and it is good Internet speed. There are several ways to look at the CKFR/Transpoint deal. The publicity surrounding the concept of EBPP will benefit all within the category. As stated in the release, it will drive acceptance and use of the market. But more so, it will allow for the simplification of the decision-making event that drives the model, the consolidator client has but one choice now. The only decision a business customer has to make is whether or not it wants to employ EBPP. I think just about every business customer would say yes and thus, the merger drives the growth faster. EBPP has not been and never will be the primary focus of INTF. ESP and the many enhancements spoken of in the Killen report will drive INTF, leadership being the key to market share. Nonetheless, BlueGill cannot go it alone and there will be a great amount of business from the EBPP side of the world for years to come. Do not forget about BCE Emergis. They are not about to give up the consortium of banks that they have and might very well be looking to acquire an INTF type security to drive their model. It is becoming more probable that they would be a likely suitor but the longer INTF remains public the better for our shareholders. Now what about IBM and ORCL. Wake up call boys. Oh by the way, INTF is there to stand by you old partner, buddy, pal. They are just that and the expected explosion of business from this corridor is vast and endless. It's just getting started and as EBPP catches fire, ESP will as well. We are IBM's bread and butter for merging these distinct data forms. "L2i" is king here and drives the model. Before any platform will accept the data feed, it must be converted to usable form. EBPP to INTF is an opportunity. "L2i" with leadership capacity in ESP is its core strength and its strategy. As TLindt says, its "Stuff", its just "Stuff" put down the pipe and INTF can convert the "stuff" and make it work, now. Of greatest importance is that a prime competitor, BlueGill will be up to its neck in EBPP, internally, and will not be able to fight for share on the ESP side. This announcement further solidifies INTF's position as the leader in "L2i" and the emerging ESP market. The overall visibility is becoming vast and soon, we will be a welcome participant of growth the like of which I have never seen before. My own thoughts are these. Since the details of INTF's contracts with MSFT are not public (David is in a better position here) I cannot say what the direct impact on the revenues generated will be. However, I suspect that it is minor. Further, this acquisition makes CKFR a company focused on B2C while INTF's focus has been primarily B2B. The most recent Killen report shows the ESP market (INTF's focus--remember they need a third party to bill and so their billing product actually treats EBPP as an ESP niche) to be outpacing the EBPP market in growth. This makes sense, as customers are currently (and erroneously) way more comfortable looking at a statement online than making a financial transaction. It is just human nature. This makes ESP a lead-in to EBPP acceptance. This is why INTF is both an application software vendor (ESP) and an enabling software vendor (EBPP). Revenues are going to grow rapidly in the ESP area. Period. INTF's value chain in ESP is secure and still firing on all cylinders. As a bonus, INTF's value chain in EBPP was always dominated by IBM. It also still includes ORCL, ADP, and BCE. INTF will be just fine. NOT RELEVANT TO GORILLA GAME: As I mentioned in the report, INTF currently trades at around 7 times revenue. This merger is the beginning of an awakening of awareness of this space. After all, how many times have we heard EBPP, ESP or Legacy-to-Internet mentioned in mainstream media before today? By Q3 2000 if not before, INTF's transition will translate to earnings on its balance sheet. Mr. Market will take notice and realize just what they are all about. M