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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Wolff who wrote (56944)	5/31/2000 9:18:00 PM
From: UnBelievable	Respond to of 122087

10 E-Commerce Cos. Will Need Cash By Next Year 05/31/2000 Dow Jones News Services (Copyright ¸ 2000 Dow Jones & Company, Inc.) NEW YORK (Dow Jones)--A slew of consumer electronic commerce companies will likely have to raise fresh capital over the next year as their cash supplies dwindle, according to Goldman Sachs & Co. analysts. "We estimate that 10 will need to raise money later this year or early next year, which could prove challenging for some with unproven business models and lack of category leadership," the analysts wrote Wednesday in a report on revised forecasts of so-called cash burn rates. The analysts didn't explicitly identify which of the 32 publicly traded consumer e-commerce companies covered in the report will have to seek new cash. However, the analyst forecasts of companies' future financial results - outlined in a table accompanying the report - indicates the following 10 will likely have run out of cash or be close to doing so by the end of 2000: CDNow Inc. (CDNW), Drugstore.com Inc. (DSCM), Egghead.com Inc. (EGGS), Fogdog.com Inc. (FOGD), Garden.com Inc. (GDEN), HomeGrocer.com Inc. (HOMG), MotherNature.com Inc. (MTHR), PlanetRx.com Inc. (PLRX), Streamline.com Inc. (SLNE) and Value America Inc. (VUSA). The once high-flying consumer e-commerce sector fell to earth in 2000, as investors and analysts expressed concerns about the ability of e-commerce companies to develop their businesses before running out of cash. These concerns dented share prices for many companies. At the same time, once-frothy demand for stock offerings from consumer e-commerce outfits dried up, as did many venture capital sources, limiting options for companies that find themselves gasping for cash. The sector is already beginning to see some casualties. Boo.com PLC, an Internet clothing retailer, collapsed earlier this month after quickly exhausting its capital and failing to find fresh funding.