ICGE - Steve Harmon - ... it`s too soon to tell if they can make good investments over time - 500 Beiträge pro Seite

[investor_007]

I would appreciate your thoughts on Internet Capital Group (ICGE) and Verisign (VRSN)?

Harmon: ICG to me has a great board of advisors but I`m not sure how much effectively the company can manage in terms of operating assets in the portfolio. Incenting new hires/employees with their market cap may also be difficult. ICGE benefits from being a first-mover in B2B investing but it`s too soon to tell if they can make good investments over time.

Verisign (VRSN) as a company looks attractive as I believe digital authentication could be a huge market. But its valuation at north of $16 billion appears way ahead of reality for its $70 million trailing 12-month sales.

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[investor_007]

By: dadams
Reply To: None Friday, 4 Feb 2000 at 11:53 AM EST
Post # of 66846


ICGE was just "SLAMMED" by Paul Wick on CNBC as being overvalued. We all knew that, right? ;-0

1400 P/E, and 200mil shares that may be unloaded in the next six months? Can anyone say, "nose dive" imminent?

Hopefully ICGE shareholders would move that $$$$ into the MUCH "undervalued" CMGI trading at decent P/E of 79, and a price target of $216 by Prudential. ;-)))))

--DCA

[investor_007]

By: parothedavb
Reply To: None Friday, 4 Feb 2000 at 11:53 AM EST
Post # of 66846


ICGE just got slammed on CNBC by Paul Wick (a fund manager with an outstanding record)! He says ICGE is wildly overvalued when you look at their top-line figures!!!! Same point I made last night in comparing ICGE to CMGI(our gem)!!!!!

[investor_007]

Steve,

I read your analysis religiously! Please let me know what do you think
about ICGE-Internet Capital Group?

Harmon: I am impressed by ICG`s advisory board but haven`t seen ICG make
phenomenal investments in its portfolio so far.
Right space in B2B but the company hasn`t had any huge Internet investment
successes yet. I heard they just did an investment at what I thought was a
ridiculous valuation also, so I`m not sure if ICG is making targeted
investments or just investing in a shotgun style. I think ICG may have to
buy big to stay deemed an "operational" company within the SEC guidelines.
But buying big may be difficult since few firms may want ICGE shares at such
high levels as currency.

[investor_007]

Internet Capital Group shares drop after warning


NEW YORK, Feb 25 (Reuters) - Shares of Internet Capital Group Inc. <ICGE.O>, a firm that invests in business-to-business Web site
operators, dropped sharply on Friday, a day after the company warned that it could not say when it might show a profit.

The shares opened on the Nasdaq at 107, off about 12 points from their closing price on Thursday, before recovering slightly by early afternoon to
trade at 109-5/8, down 9-1/2 for the session. The stock closed at 119-1/8 on Thursday. Internet Capital (ICG) on Thursday said it expected to
post losses for "many quarters in the foreseeable future" and did not know if or when it would ever turn a profit.

The Wayne, Pa.-based company on Thursday also posted a fourth-quarter loss of $23.4 million, or 9 cents a share, versus a profit of $2.0 million,
or 2 cents, in the year-ago quarter. Revenues rose to $1.8 million from $1.3 million.

Because ICG acquires interests in business-to-business electronic commerce companies, many of which generate losses, it said it expected further
volatility in its quarterly financial results.

The company said its shares of partner-company losses increased to $103.4 million in 1999 from $14.1 million in 1998, while operating expenses
rose about 568 percent to $23.4 million from $3.5 million.

During the fourth quarter, ICG spent $412 million on acquisitions, including interests in 10 new partner companies, in an effort to expand its
foothold in the top 50 global so-called "B2B" electronic-commerce markets