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Technology Stocks : SCHWAB IPO ALERT THREAD -- Ignore unavailable to you. Want to Upgrade?

To: Guy E. Fleming who wrote (2243)	8/10/2000 11:26:47 PM
From: OverUnder	Read Replies (1) \| Respond to of 2276

According to SI's IPO page, EQIX is the highlight of a rather "mundane" Friday. I affirmed my conditional offer and am curiously awaiting to see whether I get more than the usual 100 share allocation. With the size of this offering, I'm hoping to get at least a few hundred shares. Text from SI's write-up on EQIX is duplicated below: Equinix, Hopes for Big Days The best hope for solid first-day gains, according to analysts, may lie with Equinix (ticker: EQIX). The company brings with it an excellent underwriting team, often a sign of a strong offering. Goldman, Sachs and Salomon Smith Barney are lead managers for Equinix's offering, with Chase H & Q and Epoch Partners as co-managers. On the other hand, the company was forced to lower its price ranges in the past week. Equinix’s business of Internet storage facilities has already proved its viability in one of its competitors, Exodus Communications (ticker: EXDS). Exodus generated almost $180 million in the second quarter of 2000 by providing secure, stable locations where companies can place their Internet servers. Exodus assures that the companies’ servers are always up and running, and the companies can focus on running their website. With Exodus’ presence as the 800 lb. gorilla of the field, it would seem quite difficult for a much newer company like Equinix to establish itself. Equinix only started generating revenue in November, 1999, and for the first six months of 2000 its revenues totaled about $1 million. While Exodus has 22 facilities up and running, Equinix has only three. Equinix’s Model To combat these disadvantages, Equinix has turned to a different business model. Equinix focuses not only on maintaining web servers, but on connecting the various servers together within the Equinox facilities. Suppose an ISP and an e-commerce site both locate their servers in an Equinix building. If those companies negotiate a deal whereby they share content with one another, they can do so much more easily and quickly in an Equinix facility. Equinix also provides its customers multiple sources of bandwidth, from which they are free to choose. A company that places its equipment in Equinix facilities can potentially lower its costs because it is not locked into one Internet backbone. Though the Equinix model has excited many, it remains unproven. The company will have to grow dramatically to attain a critical mass for its services and achieve profitability.