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Technology Stocks : i2 Technologies -- Ignore unavailable to you. Want to Upgrade?

To: bob zagorin who wrote (1832)	1/11/2001 9:47:47 AM
From: Wizard	Respond to of 2339

hi bob, re Ariba, i2, C1. Selling B2B functionality is a very big opportunity. I don't know how many vendors it will support but the revenue numbers should get significantly larger for the 3 above over the next few quarters. procurement is a new, large market but the kicker is if Ariba can take that network software and make 'sequential moves' from this position to grab a bigger % of the overall software spend. There is a big theme that has developed which is that software functionality is moving to the network and away from ERP systems (or '1st gen' enterprise operating systems). I think Ariba sees how big the numbers are just going after procurement and has their hands full. The neat part is that procurement is network based such that they are showing their customers the power of the system in a simple way rather than trying to do too much too soon. Given how fast they are growing, they haven't felt the need to attack other areas in full force. The Ariba executives are smart though and they are aware that the procurment music will eventually sotp. I think its going to be interesting to see this all play out. In the interim, they all beat their numbers. Ariba sells at 70x the out year consensus estimate. Assuming they continue to revise up that number, the multiple is so low that the market is basically saying they are going to hit a wall soon. Maybe so but the game isn't over, in my view.