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Technology Stocks : Identix (IDNX) -- Ignore unavailable to you. Want to Upgrade?

To: brad greene who wrote (13133)	4/22/1999 11:10:00 AM
From: David	Read Replies (1) \| Respond to of 26039

Verisign . . . . I'm only sorry I put the pieces together about six months too late to recognize what would happen with Verisign. There are a couple of differences, although the main thesis stands. Verisign is a software provider, as best I can tell, which means that its profit margins are going to outstrip IDX's. Therefore, it will have a higher P/S multiple. Second, Verisign is heading for the position that NRID stockholders would like to occupy (but won't) -- the middleware provider for all forms of authentication over the Web. So VRSN will get more clicks (it's unclear how many more clicks) than the IDX's authenticating to it. Finally, of course, VRSN has locked up its market and IDX is still working on achieving that status. So my theory is that the IDX stock price rise will mirror the VRSN history, albeit somewhat later down the road and to an uncertain degree. A few years from now, the potential companies that may want to take over IDX would include Verisign and Novell.