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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 |
