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Technology Stocks : Will Zapata ZAP the Internet..... -- Ignore unavailable to you. Want to Upgrade?

To: DoggieDude who wrote (7)	7/15/1998 7:04:00 AM
From: D & G	Read Replies (1) \| Respond to of 45

I checked out their web site and it didn't appear that slow. I did find it boring and ugly. The color scheme made me want to vomit. I emailed them about getting some Gen X programmers and graphic artist to jazz up their site. It needs color and action in my opinion. DJF

To: DoggieDude who wrote (7)	7/15/1998 11:20:00 AM
From: RJC2006	Read Replies (2) \| Respond to of 45

HOUSTON, July 15 /PRNewswire/ -- Riley Capital Research has initiated coverage of Zapata Corp. (NYSE: ZAP) with a "Strong Buy" rating. "If Avram Glazer attains his ambitious goal of building the future ZAP Internet spin-off into a major portal, content, and e-commerce company, investors could see the value of that entity match or exceed the one to two billion dollar market caps achieved by other portals such as Lycos (Nasdaq: LCOS), Infoseek (Nasdaq: SEEK), and Excite (Nasdaq: XCIT). Such a valuation on top of Zapata's current cash and non-Internet holdings could imply a share price increase of more than $80 from last night's closing price of $21-5/8," says Mr. Louis Riley, principal of Riley Capital Research. "Zapata Corp.'s new Internet conglomerate strategy currently offers investors an opportunity to buy a diversified portfolio of previously privately held Internet companies without paying the typically rich market valuations similar public companies command today. In addition, melding these companies together in ZAP will hopefully create synergies that create even more value for shareholders." "Zapata president and CEO Avram Glazer has compared Zapata's current holding company structure to that of Warren Buffet's Berkshire Hathaway. But Mr. Glazer's vision for ZAP's Zap.com portal site seems more akin to that of John D. Rockefeller's vision for Standard Oil. Mr. Glazer envisions a vertically integrated "portal plus" that not only captures eyeballs at the point of initial interface, but that also retains those eyeballs via links to content and commerce sites that are also owned by ZAP. Such a strategy, if successful, might generate profits much sooner than other portals' models as ZAP may control a greater percentage of the e-commerce and advertising revenue that its portal facilitates." "Zapata's burgeoning website portfolio possesses many attributes that Internet investors seek. CoolChat's coolchat.com ) fast-growing 300,000 member community, Advancing Women's advancingwomen.com ) highly targeted audience, and Daily Stocks' dailystocks.com ) affluent daily readership are just a few examples of Zapata's prime holdings. Many of their sites generate excellent "stickiness" as their viewers repeatedly return to visit. Free e-mail and personal web pages should also help ramp up Zap.com's membership rolls and stickiness metrics." "Zapata is yet another intriguing emerging Internet company that has almost no Wall Street sell-side research coverage or sponsorship. The lone sell-side analyst that follows the company does so by virtue of the Omega Protein (NYSE: OME) spin-off. However, while the entrepreneurial Mr. Glazer has negotiated Zapata's current pending acquisitions himself, it seems highly probable that an investment bank may be retained in the future to advise the company, especially in light of the failed bid for Excite." "In conclusion, we believe Mr. Glazer may indeed realize his ambitious vision to build a major Internet company that rivals today's biggest players. Yet at last night's closing price Zapata's Internet business was being valued for only a little more than $4 a share. We think Zapata shares offer enormous upside potential with a high margin of safety at these price levels." Riley Capital Research is a research boutique that specializes in highlighting investment opportunities that have frequently been overlooked by most investors and that are not followed by the majority of Wall Street sell-side research organizations. This report contains information obtained from sources which we believe to be reliable, but its accuracy is not guaranteed. Certain matters described in this report are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Opinions expressed are subject to change without notice. This report should not be construed as a solicitation or offer of any kind. Neither Riley Capital Research nor any of its affiliates received any compensation of any kind for the opinions expressed herein. Mr. Riley and affiliates of Riley Capital Research currently hold positions consistent with the above rating. SOURCE Riley Capital Research -0- 07/15/98 /CONTACT: Louis Riley of Riley Capital Research, 281-996-1742/ (ZAP LCOS SEEK XCIT OME) CO: Riley Capital Research; Zapata Corp.; Omega Protein; Lycos; Infoseek; Excite ST: Texas IN: FIN MLM SU: RTG