VRGE,looks like others starting to take notice
netstocks.com
Ones To Watch Update
Jul 20 2000 1:05PM
by Sierra Izzard
Today, we are proud to announce that PurchasePro.com (PPRO: news, msgs), our recent Ones to Watch addition, beat earnings estimates yesterday and traded up over 10% today on heavy volume. Specifically, PurchasePro.com announced a narrower than expected loss of 22-cents, 8-cents better than street estimates and grew revenues by 846% year-over-year with expected profitability by its second-quarter 2001. Thus, in our ongoing effort to capitalize on current market conditions, I am once again expanding our portfolio. Unlike my decision to add the more established PPRO to our portfolio, my new addition is a recent IPO which I feel has the necessary ingredients to make a strong move higher in the near-term. The company is Virage Inc. (VRGE: news, msgs), my entry point for shares is $19.50, and I am allocating 20% of our portfolio to the stock.
Self-proclaimed the “Vignette for Video” Silicon Valley-based Virage provides software that enables media and entertainment companies, enterprises and consumers to manage and distribute their video content over the Internet. The company provides these services to top-notch clientele including CBS, Turner Broadcasting, Alta Vista, C|Net, Yahoo!, Boeing, Compaq, Morgan Stanley Dean Witter, General Motors, Microsoft, and government institutions such as the FBI and NASA, just to name a few.
While the company’s original technology was developed at MIT and UCSD, some of the company’s current notable products include the Virage Internet Video Guide(TM), the leading search engine technology for streaming media on the web used by ABC News, MGM, and Real Networks (Real Player, Real.com, Real Jukebox) and the Virage Video Application Server, a customizable publishing foundation for video-rich web sites.
In addition to Virage’s strong client list, the company is backed by a strong group of strategic investors including Adobe, Akamai, CMGI’s Altavista, C|Net, Chase Hambrecht & Quist, Reuters, Real Networks and Thomson Multimedia.
From a fundamental standpoint, Virage’s operates in the burgeoning market of streaming media delivery solutions that may explode once band-with constraints lessen and provides search, optimization, and server technology just as Yahoo!, Inktomi, and Akamai once focused on.
The company recently went public on June 29th with underwriters Credit Suisse First Boston, Robertson Stephens and Wit SoundView. Since its initial public offering, shares of Virage have performed quite well, rising over 80% above their offering price of $11 to just over $20 per share and, surprisingly, the company’s market capitalization remains well south of others within its sector. As the company’s quiet period ends on Monday, July 24th, I am looking for coverage to be initiated on the stock from at least two out of the three underwriters as well as news to be released early next week. If Virage receives one or more “Strong Buy” ratings and the NASDAQ composite is stable or trends upwards, the VRGE stock may move considerably higher because of its low 3.5 million share float.
With a strong investment banking team, a who’s who list of clientele and an impressive list of investors, Virage will represent approximately 20% of our Ones to Watch portfolio and I will be looking for it to move past its recent high of $24.50 as early as next Monday, July 24th.
As always, please do your own due diligence. Just because we buy a stock doesn't mean that you should! A company logo, stock price, and link to Virage's web site can be found in our "ISN Ones to Watch" section at netstocks.com
Virage joins VeriSign (VRSN: news, msgs), Akamai Technologies (AKAM: news, msgs), InfoSpace (INSP: news, msgs), PurchasePro.com (PPRO: news, msgs) and Inktomi (INKT: news, msgs) on the ISN Ones to Watch list.
What do you think about Virage?
Registered users of ISN may post and discuss their questions regarding Virage and our Ones to Watch with me and other ISN users on my message board : Sierra Izzard (Symbol: SRRA) I will answer your most pertinent concerns every Tuesday and Thursday! Go To: netstocks.com
And let me know what you think! |
