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Strategies & Market Trends : G&G's Riding Lawnmower thread -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (2399)	8/29/2000 9:01:50 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 4966

I think that our (and epoch's) concerns are legit. It doesn't mean that EXDS can't successfully fend off this competitive threat...though they may have to modify their business model somewhat. When I was looking at homes up in SV three years ago, I couldn't get myself to buy because I just knew that they couldn't get any more expensive....DOH!!! I would probably have a double by now if I bought one of the houses that I actually liked.

To: Lizzie Tudor who wrote (2399)	8/30/2000 9:19:17 AM
From: mph	Read Replies (2) \| Respond to of 4966

So you think it's time to sell appreciated real estate and wait for the drop before re-purchasing a residence? I actually wish I had done that around '89....

To: Lizzie Tudor who wrote (2399)	8/30/2000 11:22:12 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 4966

Hi Lizzie, Check this out RE: EXDS and tell me what you think. I picked it up off the INAP thread. The following was issued by Wit SoundView, a company affiliated with Wit Capital Corporation. Marlowe Burke Kristen Campbell Initiating Coverage InterNAP Network Services August 29, 2000 Intelligent Routing, Intelligent Arbitrage; Initiating Coverage with a Strong Buy (FYE December) FY99A FY00E FY01E 3Q00E 2Q00A 3Q99A Ticker: INAP Revenue ($M) 12.5 67.7 204.1 19.5 13.6 3.6 Price: $26.38 EPS (Reported) (0.47) (1.09) (1.88) (0.36) (0.16) (0.15) 52-Wk. Range: $19.50-$111.00 EPS (ex. Charges) (0.39) (0.70) (1.26) (0.20) (0.13) (0.12) Shrs. Out. (M): 145.3 Old Estimates NA NA NA NA NA NA Rating: Strong Buy We are initiating coverage of INAP with a Strong Buy rating. Rising demand for Internet content delivery services provides a large market opportunity for INAP’s patented intelligent routing solution. INAP appears to be moving to leapfrog the Exodus distribution channel and is selling directly to next-generation hosting providers such as LoudCloud and content delivery service providers such as Adero, which serve customers out of Exodus and other data center facilities. We view these as major emerging distribution channels and believe they provide a strong answer to concerns over lack of access to Exodus concerns. We believe weakness in shares since the CO Space acquisition has been overdone: we value the assets acquired at a significant premium to the price paid and expect the facilities to accelerate deployment of customers. INVESTMENT HIGHLIGHTS · Intelligent Routing. InterNAP enhances the speed and reliability of Internet content delivery services through: 1) aggregated network capacity and routing addresses from multiple network operators, enabling high-quality traffic termination to 95% of IP addresses, and 2) a patented routing solution which determines optimal traffic routes between given points and avoids the interconnection points where packet loss typically occurs. · Intelligent Arbitrage. INAP uses its volume purchasing power to negotiate up to 30-50% discounts on bandwidth from its 11 providers. Then, adding value through its premium routing, INAP prices at a premium to standard bandwidth pricing. Additionally, INAP has devised an intelligent arbitrage on inefficiencies in leasing terms for outsourced network capacity. By aggregating demand and balancing data traffic initiated on either point of a given network route, INAP is able to more fully load each channel and resell each unit of capacity twice to generate higher gross margins. Finally, where traffic can be routed directly through 2 of its P-NAP interconnection points, INAP generates incremental revenue at virtually zero marginal cost. · Leapfrogging the Exodus connection. INAP has signed 5 of the top 7 content delivery service providers on as customers and is making strong in-roads with next generation service providers such as LoudCloud. Apart from the testimony these customers provide as to the quality and uniqueness of INAP solutions, these companies will also support sales to hosting customers housed in Exodus and other data centers. This enables the company to bypass the powerful Exodus distribution channel and should allay investors concerns about competition of INAP services with those provided directly by Exodus. · Demand Rising. We believe demand for intelligent routing solutions is rising as the Internet supports more mission-critical business operations and congestion translates into fewer page views, uncompleted e-commerce transactions and higher transit costs. Estimates for the company’s addressable market opportunity approach $45bn in FY03. · Early Mover Advantage. INAP’s proprietary solution has virtually no direct competitors at this time. INAP has a patent not only on its own software but on the design of symmetric routing over aggregated network capacity. InterNAP’s engineering team is headed by one of the original authors of the Border Gateway Protocol (BGP) for Internet interconnections, and its proprietary solution is designed to add intelligence to the BGP. Additionally, INAP’s build-out of infrastructure enhances its