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Technology Stocks : CNET: The Computer Network (NASDAQ:CNET) -- Ignore unavailable to you. Want to Upgrade?

To: MarkC who wrote (1114)	11/17/2000 1:46:29 AM
From: Luce Wildebeest	Read Replies (1) \| Respond to of 1133

Could be a nice buy op or average down which is where I am at...niv CNET shares fall as company's Q3 revenues from securities rise By Georg Szalai, BridgeNews New York--Nov. 16--Shares of CNET Networks Inc., a provider of technology-related content on the Internet, fell more than 20% Thursday after the company reported higher third-quarter revenues from securities in its most recent 10-Q filing with the Securities and Exchange Commission. * * * Most recently, the company's stock was trading at 20 13/16, down 5 3/8 or 20.53%. That was close to the shares' 52-week low of 16, established in mid-October. In its latest 10-Q filing, CNET said that the third-quarter revenues it booked not based on actually received cash but in exchange for securities of customers reached $5.8 million, or approximately 5% of overall revenues. In the same period last year, revenues-for-securities made up approximately $1.8 million, or 2.5% of overall revenues. CNET reported its third-quarter results on Oct. 24, but did not provide any information on revenues booked in exchange for securities. "Investors are concerned that these (revenue-for-securities) deals are not worth what the company booked for," Credit Suisse First Boston analyst Bob Hiler explained. He compared CNET's situation with that of Amazon.com Inc., which has recently been met with criticism as it has also done revenue-for-securities deals with such online companies as the failed Pets.com and Drugstore.com. While the news from CNET's 10-Q filing was not positive for the stock, Credit Suisse's Hiler said he continues to be bullish on the company and still rates its shares a strong buy. After all, most of the company's revenue-for-securities deals will expire in the fourth quarter, he explained. Before the market open on Thursday, Pacific Crest analyst Steve Weinstein also commented on CNET's revenue-for-securities situation. Excluding the company's planned acquisition of ZDNet, revenue-for-securities deals made up 10.3% of third-quarter revenues, he said. "While we generally prefer to see non-cash revenue as a single digit percentage of total revenue, we don't anticipate this being an issue going forward," the analyst contended in a research note. His explanation was similar to Hiler's: Most revenue in the form of securities is a result of deals ending in the fourth quarter. Also, CNET has not entered additional such deals in the third quarter. Finally, ZDNet has virtually no such deals. As a result, CNET should not suffer from past revenue-for-securities deals for too long, according to Weinstein. His conclusion in Thursday's research note was different from investors' conclusion. CNET shares are still "inexpensive for a leading new economy brand," the analyst wrote in reiterating his strong buy rating. End