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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (31509)	8/8/2000 11:44:52 AM
From: Rande Is	Read Replies (1) \| Respond to of 57584

I like this DRIV news. Here's why. . . The company is presently undervalued at 1 times sales. They did $31 million of sales last quarter. . . and 32.8 sales the prior quarter. . . these are up from from 15.8 mil and 11.7 mil, respectively. Extrapolating 31 times 4 quarters puts their sales at 124 mil/yr at last quarters numbers. The market capitalization is presently 124 million. So the company is selling right at a years sales. But in my opinion, the problem is that the company is perceived as an E-Commerce business. . .and we all know those are mostly in the dumps now. . . .[though they will soon be darlings again, once PII ships and Christmas doesn't seem so far away.] Anyway, DRIV handles the transactions and customer service, etc. for companies wishing to sell products. For instance, I bought a bunch of software directly from a manufacturer and it was processed through Digital River. Often times it is. They handle the E-Commerce for manufacturers. . .7500 companies. But with today's news, the company is shedding its "E-Commerce Only" badge and is expanding into the hot B2B space. In other words, they can do for Big Industry what they have done for smaller manufacturers. . . and instead of processing sales for delivery to consumers, they can process sales for delivery to other businesses. . . claiming their share of this massive industry. This makes DRIV a diversified Internet Services company, not merely an E-Commerce company. . . though it will take Wall Street some time to figure it out and place DRIV into a different sector. Frankly, nobody is interested in Digital River at this time. The thing is what William J. used to call a Rodney. A stock that can't get any respect. I am beginning a position in this stock while it is beaten down here under 5 3/4. . . Make your own trades. I am not a financial advisor, nor a licensed anal-yst. . .nor am I interested in being either. . . I hold a small amount of DRIV long only at this time and have no intention of selling near-term, though I trade in and out of many stocks on a daily basis. NOTE: This is a position & LT play. . .not a momentum play or swing trade. Rande Is