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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: Philipp who wrote (2284)	7/31/1998 7:15:00 AM
From: Kip518	Read Replies (1) \| Respond to of 8307

Cyberian IPO seen shining in lackluster week Reuters Story - July 31, 1998 01:45 By Stephanie Borise NEW YORK, July 30 (Reuters) - Cyberian Outpost Inc may be the knight in shining armor for a distressed IPO market this week as technology companies with the potential to build a brand attract demand from investors. Analysts don't see the online retailer of computers and software matching the eye-popping 56-point jump of Broadcast.com Inc , but it has the best prospects in a week that has seen postponements or weak-to-fair openings. "(Cyberian) may end up being the savior for the week," said David Menlow, analyst at IPO Financial. "Everything else seems to pale in comparison." Lead underwriter BT Alex. Brown priced 4.0 million shares of Cyberian late Thursday at $18 each -- at the top of a boosted $17-$18 range, raising $72 million. The Kent, Conn.-based firm's orginal range was $13-$15. But analysts said the company -- whose business has been likened to that of Software.net Corp. -- could find its share price rising from 5 to 20 points on its opening day Friday. Software.net recently launched its own successful IPO. Logging on to Cyberian's Web site (www.ouspost.com) brings a browser on a home page with a circus of options that blink or move in animation. A shopper can select a product by brand name, category or check a hot list for new arrivals in the company's 130,000-strong unit list. The online approach to retailing continues to create demand in the public market because investors get excited over things they can put their hands on, analysts said. "The average investor needs to see a physical presence that generates traffic," said Mark Basham, investment officer and Standard & Poors. "People can relate to something they can log onto on their PC and look at and that is what attracts them." But what creates demand for shares on opening day does not automatically guarantee success in the aftermarket. And the Internet companies that are keeping up the momentum have something that sets them apart from the rest of the tech IPOs which didn't soar -- strategic alliances with monster companies who can help build a brand name and market share. Inktomi Corp. was one such case. With backing from bellwether chipmaker Intel Corp. and high-flying Internet portal service CNET Inc. Inktomi doubled in price on opening day where it closed at 36, and was one of the top gainers on the Nasdaq. On Thursday, Inktomi's stock closed at 55, up 5-1/4 on Nasdaq. Cyberian already has alliances formed with American Online , Lycos Inc. CNET and Excite Inc , practically ensuring its success, analysts said. But companies that either do not have that kind of backing or are not as easy for people to grasp, end up getting lost in the sea of Internet-related IPOs coming to market. Emultek Ltd., which makes software used in cellular phones and fax machines, debuted earlier this month on Nasdaq, but had a poor showing. "That's a different situation because it's simulation-based software and that's not where the Internet is right now," said Menlow. Cyberian intends to use the proceeds from its IPO for system upgrades, office expansion and to pay expenses for its hefty-named strategic alliances.