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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (12759)	8/9/1998 8:40:00 PM
From: Jeff Jordan	Respond to of 120523

Judy, I have always eyed the big movers for daytrading. It's just hard to do now that I'm back to work full time. I believe daytrading is more appealing in this volatile market. I'm sure some people are more comfortable taking their money home each night. I am quite comfortable holding on to bargains at this point. I believe Darren got the boot. Jeff

To: Judy who wrote (12759)	8/10/1998 4:19:00 PM
From: Sonki	Read Replies (1) \| Respond to of 120523

GEOCITIES INC (GCTY): Although five Internet-related companies are scheduled to IPO this week, GCTY is the deal hogging most of the attention. GeoCities will be the first Internet company with prominent brand-identity to hit the market in some time. Dubbing itself the world's largest web community, GCTY was the third most trafficked Web site on the Internet among home users in June 1998, according to Media Metrix. GeoCities allows its users or "homesteaders" to create their own personal Web sites in themed "neighborhoods" on the GeoCities Web site. The company's "homesteader" community has grown from approximately 10,000 users in October 1995 to over 2.1 million in July 1998. GeoCities' revenue model relies substantially upon the sale of advertising. For fiscal year 1997, the company recorded revenues of $4.58 million and a net loss of $8.9 mln (or $3.40 a share), compared to year-ago revenues of $314,000 and a loss of $3 million. Over just the first six-months of 1998, the company's revenues have already surpassed full year 1997 top-line by 21%. This morning lead-underwriter Goldman Sachs gave an indication of the amount of money chasing this deal by boosting the offering range from the $12 to $14 level to a range of $14 to $16. In the unlikely event that GCTY stumbles out of the blocks and peaks at $16 on the first day, the company would carry a market cap of $490 million. On a trailing basis, GCTY would sport a titanic Price/Sales ratio of 57.71. But, before dismissing this deal as just another frothy offering from Internet la-la land, one must take into account that this fledgling company expanded revenues at a rate of 240% over the first six months of the year. Internet "venture fund" CMG Inc (CMGI) owns 9.7 mln shares or 31% of GeoCities. Additional equity investors include Softbank Holdings, Yahoo! and Intel, though Softbank is the only of these three companies with a substantial stake in GCTY (29.7%).