[dot_clear.gif] [dot_clear.gif] [dot_clear.gif] [dot_clear.gif] [dot_clear.gif] [dot_clear.gif] [dot_clear.gif] [twst_com.gif] [line_bak2.gif] [small_twst.JPG] [dot_clear.gif] [dot_clear.gif] ____________ [search.gif]-Submit [dot_clear.gif] TECHNOLOGY | HEALTH | CONSUMER | INDUSTRIAL | FINANCIAL | NATURAL | INVESTING [dot_clear.gif] [dot_clear.gif] [dot_clear.gif] [head_online2.gif] [quotes_charts.jpg] ____ [go.gif]-Submit [dot_clear.gif] [side_triag.gif] Latest Issues [side_triag.gif] Advanced Search [side_triag.gif] Subscribe [side_triag.gif] TWST Conferences [dot_clear.gif] [head_subscriptions.gif] [dot_clear.gif] [side_triag.gif] Subscribe Online [side_triag.gif] TWST Products [dot_clear.gif] [head_sectors.gif] [dot_clear.gif] [side_triag.gif] Technology [side_triag.gif] Healthcare [side_triag.gif] Consumer [side_triag.gif] Industry & Services [side_triag.gif] Financial Services [side_triag.gif] Natural Resources [side_triag.gif] Investing Strategies [dot_clear.gif] [head_about.gif] [dot_clear.gif] [side_triag.gif] Who is TWST? [side_triag.gif] Contact TWST [side_triag.gif] Contact TWST Europe [side_triag.gif] Sample Issue [side_triag.gif] Home [dot_clear.gif] Click the button below to talk to a live representative from The Wall Street Transcript [?cmd=hccredit&site=43323746] [dot_clear.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] The Wall Street Transcript publishes: [blank.gif] [blank.gif] [blank.gif] [blank.gif] Internet Security & Identity Authentication Issue Four analysts and top management from nine sector firms examine the Security/Internet Security & Identity Authentication sector in this 51 - page Issue from The Wall Street Transcript. Investing Strategies Report Weekly series of interviews with TWST Editors and top money managers [blank.gif] [blank.gif] [blank.gif] [blank.gif] Let the best minds of Wall Street pick your stock [blank.gif] [blank.gif] [blank.gif] [blank.gif] How has Special Stock Report been able to consistently outperform the major indices? Find out how! [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] [blank.gif] Click Here Yahoo! has a great business model, states Analyst Full article published: 07/24/2001 SAFA RASHTCHY is a Vice President of U.S. Bancorp Piper Jaffray [full_article.gif] For Subscribers [but_subscribe.gif] Get the complete article now! Nine analysts and top management from thirty-six sector firms examine the Media & Entertainment sector in this special 199-page issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info389.htm TWST: Safa, we last spoke to you about Internet media back in November 2000. At that time, you told us that everyone was still waiting for the real promise of online media. What's happened in this space since that time and to the promise that was associated with it? Mr. Rashtchy: I think this is a good time for us to revisit that question, because enough has happened to enable us to say that, unfortunately, some of that promise hasn't materialized. Part of the promise that I was referring to was with regard to what the online publishers could deliver to advertisers and here, primarily, I'm referring to contextual commerce. A big area of focus for the online media was that it would be possible to actually induce people to shop by presenting opportunities to them at the point at which they're reading something relevant. The argument was that because of the relevancy of the context to the offer, consumers will take the offer and make a purchase. As it turned out, that's not quite how it works. The idea sounds terrific, that if a person is reading an article in, say The New York Times about a Fourth of July barbecue, and there's an ad for a barbecue on the page, that the reader would click on it and buy the item. I think, in reality, there just weren't enough people who would respond to contextual merchandising and it was not possible to do a lot of real targeting. As a result, it was hard for the publishers to really sign up advertisers saying, "Look, if you're a barbecue seller, you've got to be in our articles that mention barbecue." Like other merchants, barbecue sellers wanted to target a wide audience and there wasn't the scale of people who would be reaching them through this contextual commerce. So I think that part of it was somewhat of a disappointment. TWST: When we spoke last, again back in November, you were recommending Yahoo! and Internet.com, now INT Media Group. What's happened there? Are these stocks still on your recommended list? Mr. Rashtchy: We have them both neutral-rated, which means we don't expect them to appreciate above market. In other words, we're not recommending that investors acquire the stocks necessarily nor are we recommending that they sell them. That's the neutral position. The problem, of course, is that the demand for online advertising has slowed considerably since we last spoke. The business model of Yahoo! (Nasdaq:YHOO), in particular, is changing as they realize that even with a rebound in online advertising, they still need to make money through other ways, primarily through fee-based services or subscriptions, for them to sustain the growth that they have had. If you look at the traditional publishers, they always have two components to their revenue: subscription and advertising. That hasn't been the case in online because there was so much revenue coming from advertising and so much free content available that nobody thought about charging people. And now Yahoo and other companies are beginning to think that they have to make money in a number of ways, much like the offline people. So I think both Yahoo and INT Media (Nasdaq:INTM) are companies that do have great business models, but given the current conditions, we would put them on the Hold position. (Subsequent to this interview, Yahoo reported Q2 results that beat expectations and we upgraded it to a Buy as the online ad environment also stabilized.) This special issue includes: 1) Broadcasting - TV & Radio - In an in-depth (10,600 words) Analyst Roundtable, James Goss, Vice President at Barrington Research Associates, Inc. and Alissa Grahm, Media Analyst at William Blair & Company, examine the outlook for the sector including, general market radio, regulatory outlook and share specific stock recommendations. 2) The TWST confidential Off-The-Record survey of management performance at nineteen sector firms asked market insiders about the ability of management teams to create shareholder value. 3) Media & Entertainment Stocks - In an in-depth (3,100 words) Analyst Interview, Edward Hatch, Head of Media & Entertainment Equity Research Group for SG Cowen Securities Corp., examines the outlook for the sector and shares specific stock recommendations. 4) Entertainment & Media Stocks - In an in-depth (6,500 words) Analyst Interview, David Miller, Media and Entertainment Analyst at Sutro & Co., Inc., examines the outlook for the sector and shares specific stock recommendations. 5) Newspaper Stocks - In an in-depth (3,300 words) Analyst Interview, Leland Westerfield, Director in the Communications Group of UBS Warburg Equity Research, examines the outlook for the sector and shares specific stock recommendations. 6) Internet Media Stocks - In an in-depth (3,600 words) Analyst Interview, Safa Rashtchy, Vice President of U.S. Bancorp Piper Jaffray, examines the outlook for the sector and shares specific stock recommendations. 7) Outlook for Media & Internet Media Stocks - In an in-depth (3,400 words) Analyst Interview, Jordan Rohan, Head of Media Research at Wit SoundView Corp., examines the outlook for the sector and shares specific stock recommendations. 8) Interactive Television & New Media Technologies - In an in-depth (5,100 words) Analyst Interview, Murray Arenson, Equity Research Analyst at Morgan Keegan & Company, examines the outlook for the sector and shares specific stock recommendations. 9) Interactive Technology - In an in-depth (4,100 words) Analyst Interview, David Lee Smith, Senior Analyst covering the media sector for Dain Rauscher Wessels, examines the outlook for the sector and shares specific stock recommendations. 10) CEO interviews (average 2,500 words). Top management of thirty-six sector firms examine the outlook for their firm and the sector. Tickers included in this excerpt: YHOO, INTM For US quote, enter ticker here: _____ Go For a European quote, enter ticker here: _____ Go Have TWST notes emailed to you free: Version: Email address: [All-Sectors - daily.........] _________________ Go [full_article.gif] For Subscribers [but_subscribe.gif] Get the complete article now! Email this page [wsw_small_62_44.gif] ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ This interview is a small excerpt from a comprehensive interview published in The Wall Street Transcript on 07/24/01. For more information call (212) 952 7400. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations. Copyright 2001, Wall Street Transcript Corp. SECTOR LINKS Consumer Products Leisure Media Retail [dot_clear.gif] [dot_clear.gif] [dot_clear.gif] HOME PRODUCTS SUBSCRIBE ABOUT ARCHIVE HOTLINE CONTACT EUROPE [dot_clear.gif] [dot_clear.gif]