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Strategies & Market Trends : e-Commerce the Next 100 Months...... -- Ignore unavailable to you. Want to Upgrade?

To: Benny Baga who wrote (815)	5/5/1998 9:19:00 AM
From: AugustWest	Respond to of 2882

Well, there goes another three bucks. So FWIW, here's the second one ******************** E-COMMERCE TRAVEL VENDORS SEE STOCK CLIMBING HIGHER May 5, 1998 -------------------------------------------------------------------------------- ELECTRONIC COMMERCE NEWS via NewsEdge Corporation -- Two of the major electronic commerce providers for the travel industry - The Sabre Group [TSG] of Fort Worth, Texas and Galileo International [GLC] of Rosemont, Ill. - report strong per-share gains. The companies are the largest publicly traded computer reservation services companies. They handle about a third of the computer reservations service market serving the travel industry. Galileo reported better-than-expected results in the first quarter of 1998. "I raised my [earnings per share] estimates and price target, to $1.86 from $1.76 for 1998, and to $2.23 from $2.05," says Richard D. Park, a San Francisco-based analyst with Merrill Lynch & Co. "The stock remains undervalued at these levels." Park says the new price target for Galileo is $50, up from $45. The target is based on a $2.23 earnings-per-share estimate for 1999, Park says. United Airlines owns 32 percent of Galileo. "[Galileo] GLC ... benefits from continued margin improvement; I expect that to continue," Park says. "I also think acquisitions are very likely near term." Galileo was one of the ECN stock chart's top performers last week, closing at $40.38, a 10 percent jump over its price on April 23. Sabre Group Under Pressure The price of Sabre Group shares rebounded on the heels of the company's winning contracts with US Air and ABACUS JV, a leading computer reservation service provider. The Sabre Group closed April 30 at $36.38, down 2 percent from its price on April 23. "[But] these positive announcements do not compensate for the Year 2000 costs in financial projections for 1998 and 1999," Park says. The company's margins are under pressure from a major shift in revenues to IT outsourcing. The Sabre Group continues to make investments in computer reservation service, and Park predicts its margins will continue to be under pressure. "There will be selling pressure on the stock at these levels," Park says. American Airlines' parent company, AMR, owns 82 percent of Sabre. Park says AMR may spin off the Sabre Group. Also Sabre's Year 2000 spending is behind schedule, he notes. That will add costs to the 1999 earnings per share estimates. (Richard D. Park, Merrill Lynch & Co., 415/296-8725.) Electronic Commerce News Stock Index April 30, 1998 Company Ticker 4/30/98 1-Week 6 months YTD* AT&T T $60.13 -4% 24% 2% Broadvision BVSN $18.50 3% 164% 185% Cambridge Tech Partners CATP $52.25 -2% 43% 29% CheckFree CKFR $25.75 0% -5% 0% CyberCash CYCH $20.50 -2% 30% 61% First Data FDC $33.88 1% 16% 12% GE GE $85.19 2% 33% 15% Galileo GLC $40.38 10% 61% 42% Harbinger HRBC $36.38 -2% 22% 28% Hewlett-Packard HWP $75.38 1% 23% 17% IBM IBM $115.88 -1% 18% 10% Logility LGTY $11.00 1% NA 1% Manugistics MANU $60.00 5% 68% 37% Microsoft MSFT $90.13 -2% 39% 37% Netscape NSCP $27.31 6% -17% 17% OpenMarket OMKT $18.88 5% 68% 80% Onewave OWAV $3.38 -4% 69% 93% QuickResponse Services QRSI $47.00 2% 45% 31% The Sabre Group TSG $36.38 -2% 37% 25% Security Dynamics SDTI $24.13 10% -29% -31% Sterling Commerce SE $42.56 0% 28% 11% Worldcom WCOM $42.78 -2% 27% 43% Note: Best performer noted in bold, Worst performer in italics * YTD signifies year to date. Source: OneSource [Copyright 1998, Phillips Publishing]