This guy from Piper who covers about 40 internet stocks including gnet has gnet as his top pick.....here is what he had to say about gnet and some other internet stuff......this comes from their new web page
Safa Rashtchy
Senior Research Analyst
Safa Rashtchy is a vice president of U.S. Bancorp Piper Jaffray and a senior research analyst focused on the Internet media industry. He joined the Equity Research department of U.S. Bancorp Piper Jaffray as a
research analyst in 1997 and has coauthored key industry reports on the Internet, including "From e-Publishing to e-Business." Rashtchy has developed his research universe with a focus on the e-marketing process
and its implications for Internet media and advertising companies.
Rashtchy came to U.S. Bancorp Piper Jaffray with extensive background on the Internet as well as experience in the digital imaging industry.
Stocks that he follows:
ASKJ
Ask Jeeves, Inc.
CMGI
CMGI, Inc.
DIGI
Digital Impact, Inc.
DCLK
DoubleClick, Inc.
EGRT
Egreetings Network, Inc.
GNET
Go2Net, Inc.
GOTO
GoTo.com, Inc.
INSP
InfoSpace.com, Inc.
INTM
internet.com Corporation
IPRT
iPrint.com, Inc.
IVIL
iVillage Inc.
LOOK
LookSmart, Ltd.
MQST
MapQuest.com, Inc.
MPLX
Mediaplex, Inc.
MYPT
MyPoints.com, Inc.
NTWO
N2H2, Inc.
TCTY
Talk City, Inc.
VCNT
Vicinity Corporation
YHOO
Yahoo! Inc.
Research Reports
Selected Free Research
Jun 07
Current Insights/Top Pick - 6/2000: Internet Me...
Industry Insight
Universe Description, May 2000: Internet Media companies are involved in providing content and services that attract users to the Web and allow marketers to establish personalized relationships with them to create
a one-to-one e-marketing experience. The Internet Marketing companies or e-marketing firms are also a crucial part of this process as they help design, deliver, and maximize the impact of the marketing message. The
Internet Marketing companies provide access to Web resources, aggregate content, provide original content or services, or create communities and connect users together. Internet Media companies are becoming
increasingly active in providing core Internet infrastructure as it pertains to distribution platforms, key outsourced content components, essential Web site content functionality, search tools, and navigational platforms.
We believe that successful Internet Media companies are destined to become the ultimate marketing environment through which customers and businesses interact.
? Trends 2000
1. Customer Is The King. In our opinion, the new millennium will be the era of the customer, with the best companies providing services for knowing one?s customers and targeting them with personalized solutions.
Watch for companies that either attract highly targeted demographics or provide key marketing services to customize offerings and promotions. The key theme: matching customer needs with marketers? offerings.
2. Commerce. We believe that the main promise of the e-media companies will unfold in earnest in 2000, as e-commerce becomes an integral part of the e-media offering and customers increasingly make their
purchases from content-driven sites, opting for the experience rather than pure transaction.
3. Vertical Focus. We expect more vertical and specialty portals offering ?solutions? not just content to the specific demographics or interest groups. Watch for the ones targeting the most lucrative segments, Gen Y and
women.
Top Pick
May 2000: Go2Net, Inc. (GNET)
Company Description: Go2Net is one of the Internet?s premier properties and a top-15 most-trafficked network as measured by Media Metrix. Go2Net?s business model consists of three primary areas: consumer
services, business services, and enabling technologies. Based in Seattle, Washington, Go2Net employs more than 325 people and has sales offices in more than 10 cities.
? Strong Presence In Key Verticals. Go2Net has built a strong presence in search, content, broadband, and business-to-business sectors. Through MetaCrawler and Dogpile, Go2Net employs meta-search technology
to deliver one of the best search results on the Web. Through Go2Net.com, Silicon Investor, and across the entire network, the Company delivers premier news, financial content, online gaming, and e-commerce to its
users while helping marquee advertisers (542 total advertisers as of March 31, 2000) to reach potential customers. Go2Net is also leading the transition to broadband; through a partnership with Charter
Communications, the third-largest cable operator in the United States, Go2Net will reach thousands of users who will access the Internet via Charter?s massive deployment of set-top Internet access devices. Finally,
Go2Net is a leader in business-to-business, HyperMart, Virtual Avenue, and Authorize.Net, which comprise an essential enabling platform for more than 800,000 member businesses, representing the Web?s largest
business community.
? Strong Performance And Potential Upside. Go2Net?s model is proving to be highly lucrative and scalable: focusing on building vertical content, not a single brand; gaining critical mass through vertical platforms; and
expanding revenues by licensing its platform. On April 18, the Company reported first quarter earnings that significantly surpassed our estimates. As a result we have raised our estimates, while we still believe that
there is major upside potential to our new estimates. Potential upside from the partnership with Charter Communications could be as much as $30 million.
? Investment Conclusion. We believe that Go2Net?s revenue and profitability will continue to expand as the Company grows its market position through acquisitions and internal growth, and as the synergies between
Consumer, Business, and Enabling services operations are realized. Currently, the stock is trading at 16x our calendar 2001 revenue estimate of $151.5 million. This is one-fourth the multiple of InfoSpace (72x CY01)
and much lower than the elite Internet media companies, such as Yahoo! Inc. (57x CY01). Considering the strength of Go2Net?s offering, strong balance sheet, profitability, and greater-than-50% revenue growth rate,
we believe that Go2Net deserves a much higher valuation. We rate shares of GNET a Strong Buy, and believe that Go2Net is an excellent high-growth stock for an aggressive Internet portfolio.
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