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Technology Stocks : Cornerstone Internet Solutions (CNRS) -- Ignore unavailable to you. Want to Upgrade?

To: Ashley800 who wrote (120)	3/19/2000 11:11:00 PM
From: Glenn Petersen	Respond to of 131

Why am I not surprised to see you here. :) From the March 27, 2000 issue of "Business Week": Has microcap sizzler Cornerstone Internet Solutions (CNRS), whose shares have fizzled since December from 12 to 6, lost its spark? Not a bit, say some pros who have added to their stakes since the stock's recent fall. Most of these investors scooped Cornerstone shares when they were trading much lower. Cornerstone, which helps clients develop Internet strategies, was highlighted in this column in mid-August when it was trading at just 2. Two things will ignite the stock once more, says one big stakeholder: Cornerstone will soon have a national rollout of its FOODgalaxy.com service, which lets restaurants and other foodservice establishments post lists online of their supply requirements. Food suppliers that subscribe to FOODgalaxy.com respond to the list by submitting their bids based on price and product quality. This competitive auction-like process tends to drive down the cost of goods to buyers by as much as 20%, the company says, and it saves both buyers and suppliers a lot ot time. Already some 550 food establishments and suppliers are using FOODgalaxt.com's system. Down the road, Cornerstone is expected to take FOODgalaxy.com public, says one investor. One other thing: Cornerstone is forming a strategic alliance with a giant financial-services company to provide credit facilities to subscribers of FOODgalaxy.com. The tie-up will enable Cornerstone to broaden its services to its clients, while the financial-service company will get new business and gain new customers. Cornerstone declined comment.

To: Ashley800 who wrote (120)	3/19/2000 11:36:00 PM
From: Glenn Petersen	Respond to of 131

Before we get too excited about CNRS, two thoughts: 1) The money raised for FOODgalaxy.com did not come from any strategic investors. A portion came from management and the directors. We should probably assume that they cut themselves a good deal. 2) In addition to the 25 million shares currently outstanding, there is a preferred issue that is convertible into another 10 million shares. From the last Form 10-Q:"As of November 30, 1999, there were 8,040 shares of Class D Preferred Stock issued and outstanding and convertible into 10,050,000 shares of Common Stock." Too bad. The above items probably explain why the stock didn't pop on Friday.