Silicon Investor (SI) -- The First Internet Community

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To: Technologyguy who wrote (428)	10/30/1998 11:32:00 PM
From: mod	Respond to of 28311

The Needham report is 16 pages long. If anyone wants the full report, PM me your e-mail address, and I'll e-mail it to you in .pdf format. Here is their summary: ----------------------------- go2net, Inc. is a network of Internet content, community and eCommerce sites that benefit from a diversified revenue stream that includes advertising, subscriptions, eCommerce and technology licensing. The Company recently ranked 28th on the Relevant Knowledge list of most trafficked networks with 3.3 million unique visitors for the month of August despite spending just $691,000 on sales and marketing in the past four quarters. These sites and their related technologies give go2net the same capabilities as its larger portal and community competitors, and we expect the Company to become a contender in this arena. Opinion · We are initiating coverage of go2net with a Buy rating and a six to 12-month price target of $32 (a 68% increase from current price levels). We believe that the Company has quietly built a formidable portal site and user aggregation network that will soon rival the capabilities of its better known competitors. go2net also benefits from its multiple revenue streams that include advertising, subscriptions, eCommerce and technology licensing across its six separate sites. · go2net has been built primarily through the acquisition of highly automated, low-maintenance Web sites. This means that there is very little incremental cost associated with bringing the acquisitions under the corporate umbrella. Where labor-intensive content is required, go2net partners with a content provider or purchases it from a third party. · This network of sites gives the Company the capability to offer the same products and services as its major portal rivals. We believe that go2net will become a credible competitor in this arena with the launch of its destination site, expected before year end, that will consolidate and give brand identity to the network. · The Company has spent very little money on marketing, but has still become the 28th most trafficked network on the Internet by associating with unique and valuable Internet properties. · Our six to 12-month price target of $32 represents a multiple of 6.9 times our calendar 1999 revenue estimate of $20.5 million. More importantly, the Company is currently valued at about $33 per unique user versus $459 per unique user for industry leader Yahoo! and an average of $91 per unique user for runners-up Excite, Infoseek and Lycos. We also note that management holds about 38% of the total shares outstanding. ------------------------------ Dennis

To: Technologyguy who wrote (428)	10/30/1998 11:47:00 PM
From: mod	Read Replies (1) \| Respond to of 28311

Here is an interesting paragraph from the Needham report, as it applies to the future of SI: --------------------------- In terms of strategic direction for StockSite, we expect it to be combined in some way with the recently acquired Silicon Investor site. StockSite could benefit from the strong community aspects of Silicon Investor and its well-known brand name among technology investors, while Silicon Investor could benefit from the wealth of investment-related data provided by StockSite. Combining the two would also mean promoting a single financial services brand rather than two. ---------------------------- Dennis