It was another ugly day for business-to-business stocks, with Merrill's B2B Holdrs (BHH: news, msgs) erasing 3.3 percent, led by a 23.9 percent plunge in shares of VerticalNet (VERT: news, msgs). The stock saw its price target rating lowered by Wedbush Morgan Securities to a $30 from $50
Last Update: 11:45 AM ET Oct 6, 2000: NewsWatch Indications ADR Report
Friday, October 06, 2000
VERT falls on Wedbush note --11:45 am - By Michael Baron VerticalNet (VERT: news, msgs) is plunging $5.81, or 20.4 percent, to $22.75, after Wedbush Morgan Securities lowered its price target on the Horsham, Pa., business-to-business industrial commerce network firm to $30 a share from $50. In a research note accompanying the move, analyst George Santana said VerticalNet's customers are unsatisfied with the amount of business its online storefronts are generating. He based this assertion on a recent phone survey of VerticalNet's largest customers. Santana, who has a "hold" rating on the stock, also expressed concern about the number of e-commerce centers on the company's network that are owned by VerticalNet. "At least 10 percent of total eCommerce centers are owned by VerticalNet subsidiaries, some eCommerce centers are the result of barter arrangements and a high percentage of customers are dissatisfied with their VerticalNet investment," the note reads. "Based on feedback from VerticalNet's customers, we believe light traffic and poor ROI (return on investment) will cause most storefront and eCommerce center customers to decide not to renew." VerticalNet wasn't immediately available for comment.
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