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Internet Stock Review Online, Sunday 1/10/99
Los Angeles 48...80F Partly Cloudy.
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Table Of Contents:
1. Welcome.
2. 1999 Watch List.
3. Disclaimer.
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Our web site is at internetstockreview.com
We will be published (mostly) on Monday, Wednesday and Friday.
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Welcome.
Let's start out by throwing our cards out onto the table. We sold all our
Internet related stocks on Thursday, December 31st. Mistake. No...huge
mistake.
We'll blame it on CNBC which was blaring out ever 20 minutes that day that,
"analysts say that...experts are predicting that...savvy investors believe
that...we have seen the peak in Internet stocks." Then there was constant
barrage of comparisons to the bowling stocks in the sixties, the personal
computer stocks in the 70's and the biotech stocks in the 80's.
To tell the truth though, we usually end every year flat. So we really can't
blame it on CNBC. We like to get out of everything and spend a week or two
reviewing our past successes and failures. It's also a good way to break-off
any temporary love affairs (never fall in love with any stocks--particularly
Internet related ones) which we may have developed during the year. In any
event, aside from a 16,000 share position in Kushner-Locke (KLOC), which we
recently acquired through the exercise of options, we are out of this market*.
Let's also take a moment to stress the fact that the companies we place on the
various Watch Lists we publish are really and truly just that, Watch List
companies. A lot of readers assume we are just trying to cover ourselves
from a
legal standpoint by calling the list a Watch List rather than a Buy List. And
that of course, is not a bad idea.
This is however, truly a Watch List. So let's define a couple glaring
differences between Watch Lists and Buy Lists. First, Buy Lists have price
targets and (hopefully) sell targets on the downside. We do not issue price
targets and we do not issue stop loss targets, period. This list is a list of
companies, which for a variety of reasons, we believe are interesting (and
often unknown) and who we believe will report news which interesting. How the
news, when and if reported, is received on the Wall Street--is anybody's
guess.
In essence this list is created to simply to say, "hey, take a look at this
company." That is long way from saying, "hey, take a look at this stock."
Whether are not any of the stocks of these companies prove to be as
interesting
as the companies themselves, is an entirely different story.
And as a final card to throw out, never forget that we are a wholly owned
subsidiary of a public relations firm whose job is to get (or create) coverage
for publicly traded companies. Impartial, we are not.
A final final note to the 4,000 plus new subscribers we picked up this week,
understand that our usability does not come from in-depth analysis of news
which is reported, but rather our ability catch and aggregate news which is
reported. Think of us for what we are, which is a way to catch news which may
have fallen in the cracks or which may have otherwise escaped your attention.
We'll point you to the news as it's reported, what you decide to do with it is
entirely up to you.
So...let's move on to our 1999 Watch List. It will include our Summer Watch
List and Internet Watch List companies which are denoted by a double asterisk.
Client companies are denoted by a single asterisk.
1999 WATCH LIST.
Aim-Smart -- $2.87 (OTC: AIMS)*,**
Aim-Smart is seeking to bring 550 of the nation's largest malls and its stores
to the Internet by offering free Internet access to their 25 million shoppers.
Genius to say the least. Aim-Smart is currently in the midst of a nation-wide
rollout and currently has 50 malls online. These are not the everyday malls
but
rather malls owned and operated by some of the largest and savviest mall
operators in the county. Aim-Smart counts among it's clients, The Rouse Co.,
Wells Park, The Simon DeBartolo Group and Copaken, White & Blitt. Selling at a
quarter of its high. Pure Internet Play.
310-826-6017
E-mail
mailto:fgaskins@gaskinsco.com
News:
biz.yahoo.com
CNBC:
aim-smart.com
Chart:
stockmaster.com
Web Site:
aim-smart.com
Insider Trading:
biz.yahoo.com
American Interactive Media -- $4.06 (OTC: AIME)
Unknown content provider (ComedyNet) and Internet Service Provider for
affinity
groups for who they provide private-brand ISP services. Mark Graff, President
came from Graff Pay Per View. Selling for half of its high from last summer.
Pure Internet Play.
212-835-8500
E-mail
mailto:aime@jcir.com
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site:
aime-inc.com
Insider Trading:
biz.yahoo.com
AllNetServices -- $2.75 (OTC: AWEB)*,**
AllnetServices.com Corp. specializes in the marketing and distribution of a
broad range of products and services at wholesale prices to both consumer and
trade customers. Its Internet-related businesses include: AllnetDirect.com,
which lists over 45,000 computer-related products, similar to Insight.com
(NSIT); GoingOnce.net, a 24-hour on line auction, similar to that of
OnSale.com
(ONSL); AllmonitorMall.com, the first Web site dedicated solely to offering
all
monitor-related merchandise; and AllnetServices.com, which offers Web hosting,
professional graphics design and animation, data base management and site
development. The Company also operates its Monitor site in Spanish. Traded as
high as $17 late in 1998. Pure Internet Play.
714-257-7902
E-Mail
mailto:mmerhab@allnetservices.com
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site:
allnetservices.com
allnetdirect.com
goingonce.net
allmonitormall.com
Profile:
biz.yahoo.com
Brilliant Digital -- $2.12 (AMEX: BDE)
And returning from the 1998 list...is Brilliant Digital. After a less than
Brilliant 1998 where they saw losses mount, here is the story: "Brilliant also
recently unveiled its new Multipath Movie enabled web site. In November
Brilliant will officially roll out its Webisode program. Webisodes are mini
episodes, approximately 510 minutes in length. Brilliant plans to make
selected
Webisodes available for a free, four-week trial at
multipathmovies.com. Following the free trial period during which
users can view one new Webisode per week, future weekly Webisodes will be
available via subscription, starting at $8.95 for twelve weeks." You have to
see it to believe it. Let's give these folks another try. Internet and CD Rom
play.
818-615-1500
E-Mail:
mailto:bde@jcir.com
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site
bde3d.com
Profile:
biz.yahoo.com
Insider:
biz.yahoo.com
Borders Group -- $19.65 (NYSE: BGP)
$2.6 billion in sales and a $1.5 billion market cap. We'll take two please.
Walden Books, Borders, Bretanos, Planet Music and CD Superstore. Something has
to work out here. Everybody and their mother downgraded it on the 7th of
January and ran like scared puppies because of bad weather, except ABN AMRO,
who co-incidentally has a warrant to buy 1.8 million shares of Brilliant
Digital. Contrarians we say. Sells for less than half of its high in July.
Internet beneficiary.
734-477-1100
News:
biz.yahoo.com
Chart:
stockmaster.com
Web Site:
bordersgroupinc.com
bordersstores.com
Profile:
biz.yahoo.com
Insider:
biz.yahoo.com
CDNow -- $20.75 (Nasdaq: CDNW)**
CDNow, which is acquiring N2K (NTKI) originally appeared on our Summer Watch
and now moves to our Internet/Music Watch List. We may be dreaming but we
believe the combined company gets bought out. What they have going for them is
an established presence. What the don't have (ala Amazon) and what we can't
envision them having, with their current marketing and prices habits, is
profitability. The street is expecting them to lose $2.84 this year and $2.91
next year. Sales for nine months were $35 million vs. $9 million. $376
millionmarketcap.com Pure Internet Play. Half of its high, triple its low.
215-619-9900
News:
biz.yahoo.com
Chart:
stockmaster.com
Web Site:
cdnow.com
Profile:
biz.yahoo.com
Insider:
biz.yahoo.com
Comtex -- $0.62 (OTC: CMTX)
This year's penny play. Considering everything, this is one of the most
interesting companies on the list(s) and get this, it's profitable. Throw in a
market cap of under $5 million and we most certainly have one to watch. Three
months reported sales were $1.6 million vs. $1.2 million, earnings were
$94,000. This is a very simple business (news wire aggregator to web sites
which need news) which is destined to grow as the net grows. Destined. Sales
for trailing twelve months were $5.8 million. Comtex Know News, but nobody
Knows Comtex. Pure Internet Play. As you can probably tell from the link
below,
they need to get a decent web-site. At least the kind that lets your
shareholders know what your up to. Hello.
703-820-2000
News:
biz.yahoo.com
Chart:
stockmaster.com
Web Site
198.76.165.252
Profile:
biz.yahoo.com
Insider:
biz.yahoo.com
Digital Courier -- $7.06 (Nasdaq: DCTI)**
Here's the official company byline: "Videos Now, which debuted in November of
this year on AOL, AOL.com, and Digital City, offers one of the world's largest
Internet destinations for buying VHS and DVD movies. The categories of Video
Direct's Special interest videos are synergistic to the multiple and diverse
programming channels of Videos Now partners such as America Online. ''The
addition of these Special interest video titles to Videos Now will allow for
additional promotional opportunities in specific channels,'' stated Pittman.
''We feel they will add tremendous value to the online shopping experience.''
DCTI recently announced that its online book and video superstores will begin
linking their customer communities to each of the sites www.booksnow.com and
www.videosnow.com. The Company also plans to add over 200,000 music titles to
its Videos Now web site, beginning in early 1999 with movie soundtracks
offered
exclusively through the Videos Now Smart Shopper automated service.
We think something may come out of their very busy management
team...out-of-the-blue. Not particularly cheap with a $100 million market cap,
but it has excitement potential, albeit from a yet to be defined catalyst.
Pure
Internet Play. Been higher, been lower. We have no idea were it's going,
but it
won't be unchanged.
435-655-3617
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site:
videosnow.com
booksnow.com
weatherlabs.com
Profile:
biz.yahoo.com
Insider:
biz.yahoo.com
DYNAMIC MEDIA.COM -- $2.50 (OTC: DIMG)*,**
This will be the year for DYNAMIC MEDIA and its collection of multi-media
sites. DIMG has the nation's only fully multi-media Newspaper which covers
headline news, sports, health, business and entertainment. Has had a number of
Internet only exclusives such as interviews with Brett Favre and Randall
Cunningham. There are so many areas in which the company can hit a home run,
without the high cost risks traditionally associated with entertainment
companies, making it very much the model entertainment company of the 2000's.
The company additionally produces audio and video press releases and produces
internet trade shows. Operates an Web designer temp agency that counts among
its clients US Interactive, Major League Baseball, Pfizer, Sony Music,
Computer
Graphic Training Center, and the National Football League.
Traded strong on the news Friday that its multi-media sites received a major
visibility boost through an association and front page placement on
RealNetworks (RNWK) RealGuide. AV DailyNews.com can now be found side by side
with ABCNews, CNN News, ESPN and Sportsline. With 43 million registered users,
a lot of people are going to learn about AVDailyNews.com. Pure Internet Play.
Middle of its trading range.
800-700-0295
E-Mail
mailto:info@dimg.com
RealGuide:
Headline News
real.com
Sports
real.com
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site
avdailynews.com
Headline News:
avdailynews.com
Health:
avdailynews.com
Sports:
avdailynews.com
Entertainment:
avdailynews.com
Technology:
avdailynews.com
AV Newswire:
avnewswire.com
Webtemps:
webtempsinc.com
DynamicWeb Enterprises -- $3.37 (OTC: DWEB)*,**
DynamicWeb, also called, "EDI meets the web." If you believe industry reports
that 70% of e-commerce will be business-to-business you have to follow the
progress of DynamicWeb. For the record the dollar estimates are $268 billion
for business to business e-commerce vs. $25 billion for consumer e0commerce.
EDI, quite simply, is how big business conducts and transacts business between
themselves. It has been for years and probably will remain so for many more to
come. What DynamicWeb offers is a way for small businesses to conduct and
transact with the big boys via the Internet/EDI versus the more costly
PrivateNetwork/EDI.
In its short history DynamicWeb has been able to sign a number of Fortune 500
companies. The current (and expanding) client roster includes Linens N Things
(NYSE: LIN) Rite-Aid (NYSE: RAD), Service Merchandise (NYSE: SME), Southern
New
England Telephone (NYSE: SBD), Russ Berrie (NYSE: RUS) and Church & Dwight
(CHD). Pure Internet Play.
973-276-3100
E-Mail
mailto:stevev@dynamicweb.com
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site
dynamicweb.com
Profile:
dynamicweb.com
Insider:
biz.yahoo.com
EchoStar -- $49.75 (Nasdaq: DISH)
If ever we saw news that could justifiably propel a stock 20 points higher, it
was the news EchoStar released Friday. In one sentence; Echostar announced
that
WebTV will now be available via satellite--as no phone line--as in no 56k
modem
slowdown. This could create an explosive opportunity for the company and for
interactive video and content providers.
Let's say in another way. "Interactive TV is now (...okay, next summer) a
reality. EchoStar's satellite broadcast will incorporate the best features of
Internet sites with interactive multimedia, accessible by a click of the mouse
-- or remote control. In addition to on-demand interactive multimedia, the
service will offer the ability to download software, games and electronic
publications...to televisions and personal computers, all delivered through an
18-inch satellite dish." Where do we sign up ?
As a side note companies on the Watch List who could benefit from the speeding
delivery of Internet access are America Interactive (AIME), Brilliant Digital
(BDE), DynamicMedia.com (DIMG), MediaLink (MDLK), Playboy (PLA) and MediaX
(MXMXD). MediaX in particular has announced an agreement to be one of the
primary providers of content to EchoStar. How the street, which has become so
quick to pick up on significant news events missed this one, is beyond us. 4
million share float. Hitting new highs. 2 million share short position, bless
their souls. Can you spell rocket ?
303-723-1000
THE News:
biz.yahoo.com
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site:
echostar.com
Profile:
biz.yahoo.com
Federal Express -- $88.00 (NYSE: FDX)
We can't add much value here other than to point out the obvious. Who is going
to deliver all the books, cd's and more importantly business to business
shipments of goods such as stationary, parts and supplies. Probably the
closest
thing to a "safe play" on the long term growth of the Internet and trading at
half the market cap of Amazon. How's 20% annual growth for 20 years in a row
sound ? It's possible. 10 years from now, this call will make us famous. Have
your broker Fedex the certificates to you. Internet beneficiary.
901-369-3600
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site:
fdxcorp.com
Profile:
biz.yahoo.com
Insider:
biz.yahoo.com
Fingerhut -- $16.25 (NYSE: FHT)
It's just a matter of time before they change their name to FingerHut.com. The
hand writing is on the wall. If ever there was a company that could naturally
make a progression to the Internet it has to be Fingerhut. They're making
money, they have money, their products enjoy healthy profit margins and they
don't have to pay the gatekeepers. Nice. Has stakes in PC Flowers,
MountainZone
and Freeshop among others. Internet beneficiary.
612-932-3100
E-Mail:
mailto:lynda.nordeen@fingerhut.com
News:
biz.yahoo.com
Chart
stockmaster.com
Web-Site:
fingerhut.com
andysgarage.com
thehut.com
figis.com
pcflowers.com
mountainzone.com
skiresorts.com
freeshop.com
First Net Technologies -- $3.25 (OTC: FNTT)
Here is the official company byline: "1st Net Technologies Inc., is a full
service Internet design, creation and hosting company, catering
specifically to
publicly traded companies and the financial communities. 1st Net
specializes in
database capture, management and Internet marketing. The company owns and
operates various online newsletters, a financial online community Web site and
a well-established 3-year old Internet Mall." Kind of sounds like our parent
company (except for the mall of course), so they can't be all that bad. They
have a beautiful site and have spared no expense on it site with regards to
laying their cards out as it relates to financial disclosures. Basically, it
answered most of our questions so we'll simply point out the URL.
619-675-4449
E-Mail:
mailto:Jeff1@1stnettech.com
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site:
1stnettech.com
Harmony Holdings -- $1.15 (Nasdaq: HAHO)
Harmony Holdings is an Internet play ? Well...not exactly. Harmony Holdings is
a Internet beneficiary ? Well...not exactly. But is selling for 15% of sales
and two times book. And they are one of the premier producers of television
commercials and music videos in the country, so chances are that they're going
to discover the Internet and we rather follow their possible progress into it
rather than after it. Granted it's a stretch, but we guess the entry would
probably be suggested by the majority shareholder (44%), Children Broadcasting
Corp (Nasdaq: AAHS).
612/338-3300
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site
theend.com
curiouspictures.com
Profile:
hoovers.com
ICC Technologies --$4.50 (Nasdaq: RRRR)
Is this a "young" USWeb (Nasdaq: USWB)in the making? From the looks of their
works (web-sites) and the acquisition spree they're on, we think it just may
be. We discovered this company via a press release that announced they had
redesigned the Individual Investor web-site. Not for the faint-of-hearted with
a $100 million market cap.
212-634-6950
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site:
raremedium.com
Profile:
biz.yahoo.com
Insider:
biz.yahoo.com
Individual Investor -- $4.87 (Nasdaq: INDI)
Individual Investor as successfully graduated from print (which has 500,000
subscribers) to the Internet without the typical rise is share price. Current
market value is $41 million vs. $16 million in sales. We would carefully
monitor the progress of the revenues generated by its web-site and examine the
relative ratio analysis as compared to CBS MarketWatch if and when it becomes
public. Recently reported that paid web site impressions increased to 4.1
million in December.
212-843-2777
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site
iionline.com
Profile:
biz.yahoo.com
Insider:
biz.yahoo.com
iParty -- $4.56 (OTC: IPTY)
iParty has a number of interesting qualities, one of which is that the
Chairman
is also the Chairman of Wit Capital and the former head of investment banking
for Salomon Smith Barney from 1993 to 1997. Equally interesting is that Sam
Belzberg is on the board of directors. Here is the official company byline,
"iParty (www.iparty.com) intends to become the leading Internet resource for
consumers seeking party planning advice and information, party services, and
party goods. It expects to launch its web site in late 1998." Well alrighty
then. Did a reverse merger to land on the bulletin board. Very light on the
financial reporting other then to say there was 11,000,000 shares outstanding
as of July 15th, 1998.
News:
biz.yahoo.com
Chart:
stockmaster.com
Web-Site:
iparty.com |
