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

To: Jonathan Brown who wrote (5960)	5/8/1998 9:48:00 AM
From: esterina	Respond to of 9343

Morning Report Fri May 08 Unscrambling Value: Egghead, Past Chicken & Egg Stage By Steve Harmon Senior Investment Analyst Internet.com "Where Wall Street Meets The Web" Its latest quarterly results show 100% Internet-based etailer Egghead.com (NASDAQ:EGGS - news) in transition from bricks and mortar to clicks and modems. Our analysis shows that we think the worst may be over for EGGS and that with its cash, brand and deals it could command a multiple at least in line with peer ONSALE (NASDAQ:ONSL - news) . If EGGS can make it past the hatchling stage on the Web, and its deals with Yahoo, CNET, theGlobe, GeoCities, InfoBeat and USA.Net seem to indicate it might be able to, then a peer valuation multiple of 2.6x annualized revenue may not be out of line. That implies EGGS at $18 per share. May 7 it closed at just over $9. Check our exclusive side-by-side comparison:

To: Jonathan Brown who wrote (5960)	5/8/1998 11:25:00 AM
From: cm	Read Replies (1) \| Respond to of 9343

<<OT--Sort Of--Bits & Tidbits...>> * Deal with T is nice and all. It appears Red Herring got slightly less than one-half of their Seek "insider" story right, after all. It's not the deal per se that is interesting... because on first glance... it looks like familiar ground. It's what SEEK does with the deal... in terms of further "programming"... Motro's TV-centric word. (In fact, upon re-reading Motro's comments in the iVillage release, try to tell me he isn't borrowing chapter and verse from his cable experience. And I hear he made that explicit analogy during the CNBC bit.) I assume that at least some portion of this deal is revenue-sharing based... with SEEK getting a cut of stuff it refers to T. * I may be suffering from ROS(E)Y SCENARIO disease, but I sure like the way SEEK is adding meat to the bone-- Deutsche Telekom (for global growth), T (portal status and technology complements), WBS (chat/community--which I assume can use to T's voice technology as infrastructure--geared toward younger folks), and iVillage (which appears, according to what I'm reading, to be the first MAJOR Woman-centric move by a top search engine). And the thing is, THERE'S MORE COMING. No question. * Two stray notes: Wired Magazine sold to Conde Nast. Wired Digital is staying on its own and expected to pull a profit by Q4... further proof that CONTENT can be made to pay. Further, theStreet.com just got a big chunk of needed venture capital. * When will SEEK offer fee-based content services? Indeed, will SEEK offer fee-based content services. When will SEEK start using its WBS property and other community assets as a way to start building the SEEKer self-identification... creating a greater sense of community? * Anybody seen the amazon.com TV ad? Nicely done. Not funny. But perfect for their audience. * Lost in all the noise is a fact: SEEK WILL be rolling out a new Peronal Finance or stocks area... with message board capabilities. TALK ABOUT A WAY TO ALMOST INSTANTLY PUMP YOUR TRAFFIC! I've been waiting for this now ever since my little (very little) e-mail from Steve Kirsch. But, it DOES like they've been busy with other things. * In one other way, I am VERY GLAD that the NSCP thing is off our plates. That HAD to be a management bandwidth squeezer--those negotiations were a grind'em out affair. Now, their focus and energies can move to other more fruitful arrangements. Best Regards, c m