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To: JimM who wrote (5)	4/12/1999 5:46:00 PM
From: Mazzi	Respond to of 6

A new B2B auction company with Analyst Coverage initiated. 1968 DJ 12-Apr-99 at 15:13:00 15:30 Page DJN =TD Securities Starts E-Auction Global Trading At Buy >EAUC Symbol: EAUC Industry: CSV HOU Subject: DJN DJWI CAC CRA DJS ERP EST RTG Market Sector: NCY Geographic Region: CN NME ONT Product/Service: DAR DCA DCP DEU TORONTO (Dow Jones)--TD Securities Inc. analyst David Beck initiated coverage of e-Auction Global Trading Inc. (EAUC) last week with a "buy" rating and a target of US$12. e-Auction, Toronto, which became a publicly traded firm last month in a reverse stock merger with Nasdaq-listed Kazari International Inc., conducts online commodities auctions and foreign-exchange transaction services. Kazari changed its name to e-Auction last week. e-Auction is tiny but it is different from most Internet plays in one major way: it makes money. It had net income of US$1.5 million on revenue of US$4.9 million in 1998. In a report dated April 8, Beck projects that e-Auctions's revenue will increase to US$12.8 million in 1999 and US$42.1 million in 2000, while he sees net income increasing to US$3.3 million or 8 cents a diluted share in 1999 and to US$11.2 million or 26 cents a diluted share in 2000. His price target of US$12 is based on 45 times his 2000 net profit estimate. The stock is trading at 10 7/16 on Nasdaq, giving the company a market capitalization of about US$440 million. e-Auction was created through the merger of three companies: Generated Solutions Ltd., which developed software for electronic auctions; National Electronic Marketing Inc., which had the exclusive rights to market the GSL software outside of North America; and Jameson International Foreign Exchange Inc., which conducted foreign-exchange services for about 4,000 companies mainly in Ontario. In 1998, e-Auction completed about C$2.7 billion worth of transactions. Analyst Calls e-Auction Process Cost-Effective, Easier The three companies make a strong combination, Beck writes. "The financial-services offering, particularly the settlement and foreign-exchange components, is an integral part of the auction process," Beck writes. "Settlement is very time consuming for both buyers and sellers and by offering these services in conjunction with the online auctions, e-Auction makes it easier and most cost-effective to complete a transaction," he writes, noting that about 40% of all auction transactions are international. Most of the company's auction business is in Ontario, where about 10% of livestock auctions are online. The company recently signed letters of intent to conduct livestock auctions in Australia/New Zealand, Africa and Europe. Beck writes that, with the addition of five more customers from new regions, e-Auction should be able to manage more than US$1 billion annually in livestock trading soon. Beck expects 1999 sales to be about evenly split between auction revenues and foreign-exchange services. He expects auction revenue to grow at 425% annually through 2000, while he sees foreign-exchange revenue growing at 30% annually. Online livestock auctions hold big cost advantages for both sellers and buyers, according to e-Auction documents. Buyers pay just C$2 an animal in an online auction and sellers pay C$23.50. In live auctions, the buyer pays C$29.35 an animal while the seller pays C$53.50. A large part of the cost difference is the cost of shrinkage and transportation involved in live auctions. -By Scott Adams; 416-943-7804; scott.adams@dowjones.ca (END) DOW JONES NEWS 04-12-99 03:13 PM End of News