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Technology Stocks : Data Broadcasting Corp. (DBCC) -- Ignore unavailable to you. Want to Upgrade?

To: DAVID C. DeANGELIS who wrote (2379)	1/8/1999 11:51:00 PM
From: Sharon L.	Read Replies (1) \| Respond to of 5102

David.......that article claims the IPO comes out on Monday! I do not think so.......

To: DAVID C. DeANGELIS who wrote (2379)	1/9/1999 2:04:00 AM
From: Patherzen	Read Replies (1) \| Respond to of 5102

Why does article say Monday MKWT will trade????? THE source for financial ideas Subscribe to Individual Investor Magazine Analyst Bullpen Analysis Archive IPO Curtain Raiser: CBS MarketWatch Analyst: Adam Lowensteiner (1/8/99) Early next week we will publish an in-depth analysis of four 1998 IPOs that didn't skyrocket but appear to be excellent investments right now. We will also write about three upcoming IPOs to keep an eye on. To kick off our IPO focus, we're taking a look at the highly anticipated IPO of CBS MarketWatch (www.cbs.marketwatch.com), a competitor of www.iionline.com. The question investors are asking is, 'will dot com IPO-Mania continue its feverish ascent?' The answer will be revealed soon enough. CBS MarketWatch is scheduled to begin trading on Monday at a projected price of about $11 a share. At that price, the financial information website would be valued at $133 million, or about 25 times sales. The stock will trade as 'MKTW' on Nasdaq. MarketWatch plans to issue 2.75 million shares, and receive about $30 million in proceeds. These proceeds will be used to fund future advertising campaigns and repay debt, mostly from Data Broadcasting Corp. (NASDAQ: DBCC) which was one of the partners along with CBS Corp. (NYSE: CBS) that put MarketWatch into business. MarketWatch boasts excellent gross margins of around 60%, but has been incurring large sales and marketing expenses. The proceeds of the IPO will fund those continuing expenses. The $30 million should keep MarketWatch afloat for about two years, at which point the company hopes to be profitable. The offering may serve as a litmus test for future net offerings of media-oriented companies. Internet-based stocks and media companies are usually valued by radically differing methodologies. Net-based businesses often are valued on the basis of the level of sophistication of their technology, or the perceived growth opportunity that lies ahead. Media companies, on the other hand, are typically valued on cash flow, and typically trade at a multiple of 8-12 times projected cash flow.