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Last Update: 11:15 AM ET Oct 2, 2000:
Monday, October 02, 2000
BVSN off on downgrade
--11:15 am - By Michael Baron
BroadVision (BVSN: news, msgs) is falling $3.56, or 13.9 percent, to $22.12, on
heavy volume of 9.94 million shares. Average daily volume is 10.5 million.
Michael Sheldon, an analyst with Spencer Clarke, attributed the drop to a
downgrade of the e-commerce software firm by Robinson-Humphrey, which Dow
Jones reports cut its rating on the stock to "neutral" from "outperform." The firm
wasn't immediately available for confirmation of the downgrade. Sheldon said the
note accompanying the downgrade expresses concern about BroadVision's
dot.com exposure, which he believes isn't a problem. "I would point out that only
10 to 12 percent of BroadVision's business comes from dot.coms and that they
have a very conservative accounting policy, only booking revenue from these
firms when they receive the cash," said Sheldon, who has a "strong buy" rating
on the stock. "The business fundamentals at BroadVision remain extremely
positive." Listing a number of positives, Sheldon said Monday's weakness
represents a buying opportunity. "They had over $300 million in cash at the end
of last quarter, they have over 1,000 clients, IDC recently rated them the number
one e-commerce firm and their recent deal with IBM (IBM: news, msgs) should
provide about $500 million in revenue over the next 4 to 5 years," he said. "I
anticipate positive results when the third-quarter numbers are reported October
18." A First Call survey of 27 analysts put the company's profit at 4 cents a
share.
Gruß Dampf