BlueStone Capital Partners Announces Investment Opinion on iVillage, Inc.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners NEW YORK--(BUSINESS WIRE)--June 12, 2000 BlueStone Capital Partners, L.P. Initiates Coverage on iVillage, Inc. (IVIL) with a 2-1 Rating. Senior Analyst Kathleen Heaney and Analyst Olga Urgiles of BlueStone Capital initiate coverage Initiate coverage (1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position). on iVillage, Inc., (IVIL; NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on - $7.44) with a 2-1 Market Perform-Outperform investment rating with Intermediate-term and Long-term price target of $13.50 and $22.00, respectively. ANALYST SUMMARY We are initiating coverage on iVillage, Inc. a leading online network for women, with a 2-1 (Market Perform-Outperform) investment rating. iVillage differentiates itself from the competition given that it is the only site focused on providing solutions and peer support for women. As a result, we believe that the company has developed a strong and sustainable position as a leading destination for women online, a rapidly growing and demographically attractive segment. We believe that there is a compelling market opportunity for web sites that are exclusively targeting women, driven both by their large numbers online and their importance to the economy, thus making this demographic group attractive to advertisers and merchants alike. Accordingly, as a leading vertical portal A Web site that provides news, articles and services to a particular industry such as IT, finance and retail. It is the industry-specific equivalent of the general-purpose portal on the Web. Also called a "vortal." See portal, corporate portal, business intelligence portal and Web hub. , we believe that iVillage will capture a disproportionate dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por amount of the advertising dollars that are expected to migrate from traditional media to the Internet. iVillage is currently trading at 2.3 times our estimated 2000 revenue and 1.4 times forecasted 2001 revenue, versus 5.0 times for its peer group. Based on market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. to unique users (as per April MediaMetrix) the shares are trading at $38.00 versus $50.00 for its peer group and $34.00 for its nearest competitor. Over time we expect the stock to appreciate on greater investor awareness Investor Awareness is knowledge the investment community has of a company. [1] It can be looked at like this: “Do investors know about your company?” If the answer is “yes,” then it could be said that the company has “good investor awareness” and appreciation for the monetization Monetization The securitization of the gross revenues of a contract. potential of the company's attractive audience demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. . In addition, we are confident that iVillage is on track to increase its reach and loyalty within its targeted group. We further believe that iVillage has secured a place as one of the leading sites for women online by providing them with a premium product that is interactive and compelling to use. In our opinion, advertisers recognize this, and investors will ultimately reward the company as it continues to deliver strong top- and bottom-line execution and long-term earnings potential. Our intermediate price target is $13.50, and our long-term price target is $22.00. BlueStone Capital is a full service investment banking and brokerage firm focused on identifying investment opportunities in the emerging growth sector. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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