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To: Spark who wrote (393)	5/16/1999 3:17:00 AM
From: Curious Gamble	Respond to of 572

From The Globe and Mail: Investors warm to Canadian firms that connect to the Net Share prices of Internet Direct, CyberSurf hit 52-week highs Wednesday, May 12, 1999 Mark Evans Technology Reporter Toronto -- According to a recent survey, half of Canadians have regular access to the Internet. Until recently, however, few people were willing to invest in the Canadian companies that offer connections to surf the Internet. That reticence seems to be disappearing as the shares of Toronto-based ID Internet Direct Ltd. and Calgary-based Cybersurf Corp. both hit 52-week highs -- of $4.20 and $4.35 respectively -- in the past week amid heavy trading. John Nemanic, president and chief executive officer with Internet Direct, said Canadian investors are picking up on the company's growth story but much of the new interest seems to be coming from south of the border. "Canadian investors don't like Internet service providers [ISPs] but a lot of Americans do," he said. "They look at our company, what we have been trading at and the fact we are EBITDA [earnings before interest, taxes, depreciation and amortization] positive." Internet Direct has helped raise its profile recently with the acquisition of two small ISPs in Quebec and British Columbia. That increased its customer base to 150,000, making Internet Direct the country's fourth-largest ISP. While Internet Direct makes most of its revenue from monthly fees, Cybersurf is pursuing a different strategy by offering free access to the Internet. Its business model is based on attracting on-line advertisers to a large number of customers who agree to provide Cybersurf with personal information. Cybersurf said it has signed up 75,000 customers in Edmonton and Calgary for its 3Web service and it now has set its sites on Toronto. A good example of the company's unique marketing approach is a deal it signed with the University of Calgary to offer students free access. The distribution of Cybersurf's CD-ROMs was sponsored by Molson Breweries unit, which has a strong interest in the student market. The new appeal of Internet Direct and CyberSurf is an interesting phenomena because investors have stayed away from the ISP market for two simple reasons: Istar Internet Inc. and HookUp Communications Corp. Ottawa-based Istar and Oakville, Ont.-based HookUp were both investor darlings after splashy initial public offerings in 1995 and 1996 respectively -- a time when the Internet was just beginning to hit the mainstream. After their stocks soared on Internet-mania, Istar and HookUp both tumbled out of the spotlight after posting large losses. Istar was purchased by PsiNet Ltd. in 1997 while parts of HookUp were bought by NetCom Canada Inc. that year. "In Internet years, that's ancient history," said Paul Stapleton, a senior vice-president with Rampart Associates LLC in Denver. Nevertheless, Canadian investors have been leery about the ISP market for many reasons other than Istar or HookUp. The market is growing but competition is fierce and lower prices have caused margins to shrink. At the same time, the market is starting to consolidate and telephone carriers such as Bell Canada and AT&T Canada Corp. are getting more aggressive on pricing as they strive to be all things to all consumers. Mr. Stapleton said there are two different angles that make Internet Direct an attractive investment: The possibility it could become a takeover target for a large telephone carrier looking to increase its exposure to the ISP market, and the fact it is a profitable, fast-growing business. "They are an excellent business growing as they are," he said. "If you want to play in the Canadian ISP market, they are a company you want to look hard at. To buy your way in [to the market], this is the door you want to knock on." From a valuation perspective, Mr. Stapleton said Internet Direct trades at a discount to U.S. rivals such as Internet America Inc., MindSpring Enterprises Inc. and EarthLink Network Inc. That gap could shrink if Internet Direct moves to the Toronto Stock Exchange or the Nasdaq Stock Market. Cybersurf has appeared on the radar screen of more investors after signing advertising agreements with Molson and Proctor & Gamble Inc. last month. The biggest challenge facing Cybersurf is the slow growth of the on-line advertising business in Canada. While the market is expected to nearly double to $37-million this year from $20-million in 1998, it pales to the United States where on-line advertising climbed to $1.92-billion (U.S.) last year. ------ Previous

To: Spark who wrote (393)	5/17/1999 12:20:00 PM
From: Gator	Read Replies (1) \| Respond to of 572

PAPO (Pagean Petroleum, OTC-BB shell, $1 1/2 x $2 1/4) rumored to be very close to announcing a reverse merger with WorldLink, an internet streaming media site (similar to Broadcast.com). Web site at wl.net. They've been webcasting several concerts recently. Problem (if you want to call it that) is that traffic is too heavy on the site. Looks like they will be upgrading their server shortly. Might be a decent buy on rumor. Stock was as high as $6 1/2 a couple of weeks ago, has been drifting lower on very light volume. Hardly anything in the float, could be a runner with any volume. Gator