Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Leland Charon who wrote (9234)	2/26/1999 9:28:00 AM
From: AlienTech	Read Replies (2) \| Respond to of 43080

>>Very strange pre-opening activity in the big caps. INTC down about 4,<< Not strange, just money rotation out of SOX.

To: Leland Charon who wrote (9234)	2/26/1999 9:30:00 AM
From: Jay Lyons	Read Replies (1) \| Respond to of 43080

Don't forget PCOR and ITRA IPO's today. PCORDER.COM (PCOR): Austin, TX-based, pcOrder.com, is one of the few Internet deals scheduled to price this week. The company develops software applications and content databases which enable the computer industry suppliers, resellers and end users to buy and sell computer products online. PCOR's software increases the automation of product search, comparison, configuration, pricing and financing. The proposed offer range on the Goldman Sachs-led 2.2 million share offering is $11 to $13 per share. For fiscal year 1998, pcOrder.com more than doubled revenue from $10.59 million to $21.71 million. The company's operating loss swelled from $1.13 million or $0.09 per share to $9.64 million or $0.75 a share. At $13 per share (the high-end of the offer range), PCOR sports a market capitalization of $197 million and a Price/Sales ratio of 9.07. On a Price/Sales basis, the stock would trade at a about a 53% discount to to the P/S awarded competitor BroadVision Inc (BVSN). Based on the strong first day performance of Internet IPOs over the past four months, PCOR's valuation likely to surpass Broadvision on the stock's first day of trading. Investors have learned over the past two weeks, however, that a strong debut often comes with pitfalls. For example, after opening at 35 on Friday (169% above the IPO price), shares of Internet IPO WebTrends Corp (WEBT 24 -3 1/16) have tumbled 31%. Two weeks ago, shares of Asia/Pacific Internet access provider, Pacific Internet (PCNTF 32 +2), opened at $88, 418% above their IPO price. The stock gave back 40 points by the end of the first day of trading and has now fallen 64% from the opening price. INTRAWARE INC (ITRA): Internet fever has made its way from the austere offices of day trading outfits to the opulent conference rooms of Wall Street's elite investment houses. The initial public offering of Orinda, CA-based provider of "Internet-based" business software services is the latest example of the affliction. By adding the term "Internet-based" to its description, Briefing.com estimates that ITRA will be able to command double to triple the valuation the company would have gone for otherwise. While investors who take time to read the prospectus are able to quickly discover the company's Internet affiliation, it takes considerable more research to uncover that for the 9-months ended Nov. 20, only $1.5 million or 6.2% of INTA's revenue was derived from online services. In our opinion, the most startling element of this offering was the company's ability to attract a top-notch underwriting team, despite ITRA's heavy reliance on one customer for substantially all of its revenue. For the nine months ended November 30, Intraware generated over 90% of its software product revenues from the sale of Netscape software, and 87% of online service revenues from the outsourcing of Intraware SUBSCRIBNET services to Netscape. Moreover, ITRA is not certain to what degree the pending America Online acquisition of Netscape will effect the relationship between the companies. Underwriters CS First Boston (lead manager), BB Robertson Stephens and Hambrecht & Quist are expected to price the 4 million share offering tonight. The proposed range is $13 to $15. Financials: For the 9-months ended November 30, ITRA reported revenue of 24.56 million, up more than 300% from the $5.33 million logged in the year-ago period. The company's operating loss widened to $7.84 million ($2.25 a share) from $2.72 million ($1.53 a share). Gross margin for the 9-month period was an unimpressive 19%. Description: The 2 1/2 year-old company aims to act as an objective resource by helping its corporate customers evaluate and purchase business software which ITRA then delivers electronically.