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Technology Stocks : NBCi -- Ignore unavailable to you. Want to Upgrade?

To: Yogizuna who wrote (198)	10/20/2000 1:29:22 PM
From: ms.smartest.person	Read Replies (2) \| Respond to of 231

<From Briefing.com> Story Stocks 11:42 ET **** NBC Internet (NBCI) 4 15/16 +1/8: No official announcement yet, but it is widely expected that NBCi's President and COO, Edmond Sanctis will soon announce his departure from the company after less than a year as President. The news continues a string of disappointing announcements from the Internet portal that has seen its shares fall 95% from their January high of 106 1/8. In June, the company issued a Q2 warning announcing greater than expected losses. In August, the company disclosed a major workforce reduction that left some 170 San Francisco employees jobless. The 20% workforce reduction was part of a rebranding strategy that included a redesign of the portal. The hope is that by eliminating the former brands that comprised the NBCi property such as xoom.com and snap.com, NBCi will enjoy stronger brand recognition. Certainly NBC is a powerful brand and their news content is widely read, but as far as the Internet space goes, it's no Yahoo! NBCi is hoping that their broadband strategy will drive more traffic as they will be able to incorporate NBC television programming into interactive TV on the Web site, but interactive TV is not seeing the type of market reaction that the industry had hoped for. While the losses are shrinking, and the backing of NBC will probably ensure the ultimate survival of the company, there is really no reason to expect the shares to stage a comeback anytime soon. With the ongoing weakness in online ad rates expected to continue, investors have fled from any company that heavily relies on advertising revenues. NBCi derived 83% of their Q2 revenues from advertising. The company will be reporting Q3 results next Thursday (Oct 26) after the close and the consensus estimate calls for an operating loss of $1.00 per share. It's doubtful that a positive surprise will spark the beleaguered shares, in fact with the Olympics behind us, there is not much at all on the horizon for NBCI shares. One more note on the President's expected departure -- Sanctis will take with him a half million options with a strike price over $50 per share -- he's in the money as soon as NBCI shares add another 1,060%*** to yesterday's 52-week low. These stories are becoming all to familiar in dotcom land. <subscription required> briefing.com *At least we know he won't be dumping those shares soon.LOL