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Technology Stocks : INFOSEEK (GO) -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (1995)	1/25/1998 3:04:00 AM
From: MGS	Read Replies (1) \| Respond to of 9343

BT Alex Brown reiterated its BUY rating on SEEK Solid 4Q Results - Impressive Revenue Growth and in line traffic growth - continued opportunities for e-commerce espansion -- mintaining BUY rating. * 4Q results significantly ahead of expectations: operating loss per share of $0.15 on $12.5 mm in revenue above our $0.19 loss per share forecast on $11.0 mm in revenue. HIGHLIGHTS: * Adjusting 1998 EPS estimate to a loss of $0.14 from an EPS of .03 to reflect an increased advertising and marketing expenditure while maintaining revenue estimate. Initiating 1998 quarterly estimates, maintaining 1999 EPS and revenue forecast. * Primary variance came from stronger than expected advertising revenues ($10.8 mm vs. our $9.0 mm estimate) and slightly stronger than expected other revenues ($1.1 mm vs. our $900,000 estimate). Operating expenses of $15.0 mm were roughly in line with our $14.8 mm forecast, a sign that the Company continues to conservatively manage its bottom line. * Average daily page views increased to 12.5 mm from 10.1 mm (up 23% Q/Q). This was on par with Yahoo!'s (23% growth) but below Excite's (42% growth), implying a slight loss of share. CPM rates remain in the low $20 range, advertisers jumped to 500 from 300 (Q/Q). * The Company plans to raise capital in a 2.5-3.0 million share offering in 1Q 1998. Use of funds include additional marketing and branding and potential investments in product development. * Excite's entry into targeted advertising sales (with Match Logic) could boost Infoseek's Ultra Match driving higher CPMs for the Company's large inventory of general rotation impressions (70% of use generates general rotation impressions). * Risks include the potential for CPM pricing pressure and the management of hyper-growth. * Maintain "Buy" (2) rating and $15, 6-12 month price target, based on a 7x multiple of our $65 mm 1998 revenue estimate. (...) COMPANY PLANS TO RAISE CAPITAL Infoseek announced an intention to raise additional capital in 1Q 1998 with a 2.5-3.0 million share offering. Use of funds will include additional branding and the potential for strategic acquisitions. We view this as a positive move given that leadership in this industry will likely require a solid balance sheet and war chest for strategic maneuvers. (...) Best luck!

To: TLindt who wrote (1995)	1/25/1998 3:16:00 AM
From: MGS	Read Replies (1) \| Respond to of 9343

I'm still long with ~100K shares; I personally believe we could hit 16 in a few weeks. Regarding XCIT is still an exceptional stock to own mediumm-long term; (BARS raised tg. price to 75$); however short-term I prefer SEEK because they could start closing the gaps with the other 3 MNA in terms of commerce partnerships very soon and they are probably going to be profittable before XCIT. The mix of these with possibile investment by major player (Time-Warner, NBC, CBS, Walt Disney, ...)could really start a rally towards low twenties. All in my opinion Best luck!