Presentation 2

INTERNET INDUSTRY: 

INTERNET INDUSTRY Presented By: Melinda Ratzlaff Scott Runyan Maggie Norman Aimee Halbach Winter Thielen Christine Hiller

Slide2: 

T-Bill Rate 1.735% The internet is cyclical. Largest boom was in 1990, but the bubble has burst since then. B U S I N E S S C Y C L E GDP $11,735 Billion George W. Bush Republican Whitehouse UNEMPLOYMENT 5.2% Consumer Sentiment Individual Consumers Have Become Key Customers For The PC Industry. There Is Recent Talk About Implementing A Consumption Tax. T A X E S United States Deficit $445,000,000,000

THE CYCLICAL INTERNET: 

THE CYCLICAL INTERNET

THE CYCLICAL INTERNET: 

THE CYCLICAL INTERNET “An Industry Which Is Sensitive To Business Cycles And Whose Performance Is Tied To The Overall Economy”

THE TECHNOLOGY AGE: 

THE TECHNOLOGY AGE TREND TREND 2000-2002 36% IN 2004 Two Primary Factors: Improving Company Fundamentals More Favorable Macroeconomic Conditions

IT’S AN INTERNATIONAL THING: 

IT’S AN INTERNATIONAL THING United Kingdom 16,948,986 Users Germany 20,930,295 Users U.S. 119,260,663 Users Japan 25,091,707 Users Italy 16,948,628 Users

HOW’S BUSINESS?: 

HOW’S BUSINESS? VALUE LINE RANKING 11/98

NEW KIDS IN TOWN: 

NEW KIDS IN TOWN World Wide Search Engines Yahoo’s Yisou Google’s Baidu

6 RULES OF CYBER-SPACE: 

6 RULES OF CYBER-SPACE 1. Internet Tax Non-Discrimination Act 2. Identity Theft Penalty Enhancement Act 3. Cyber-Security Research And Development Act 4. Can-Spam Act of 2003 5. Electronic Signatures in Global And National Commerce Act 6. Internet Tax Freedom Act Of 1998

1-800-FLOWERS.com: 

1-800-FLOWERS.com

1-800-FLOWERS.com: 

1-800-FLOWERS.com 1-800-FLOWERS.com Does More Than Just Peddle Petunias Online 1600 Stewart Avenue Westburry, NJ. 11590 516-237-6000 www.1800flowers.com

20-CENTURY FLOWER SHOP: 

20-CENTURY FLOWER SHOP We Sell Flowers And Specialty Gifts In Stores, Telephone, Or Via The Internet Ticker: FLWS Exchange: NASDAQ

THE HEAD FLORIST: 

THE HEAD FLORIST Jim McCann Chief Executive Officer Been Arranging Flowers Since 1986 To Build A Reliable Brand Name That People Would Learn To Love

MONEY MONEY MONEY: 

MONEY MONEY MONEY McCann Soenen CEO Of FTD $975,000 $256,731

FLOWER DISTRICT: 

FLOWER DISTRICT FTD Roll International Bear Creek Corporation

FROM THE EXPERT: 

FROM THE EXPERT Price Projection High $14.00 Price Projection Low $9.00 Financial Strength B

RELATIONSHIPS: 

RELATIONSHIPS

THIS IS A SEASONAL BUSINESS TO BE IN: 

THIS IS A SEASONAL BUSINESS TO BE IN Profits Are Higher In The 2/4 Quarters And Tend To Drop In The 1/3 Quarters

REUTERS: 

REUTERS Analysts Recommend The Stock Will Outperform, But There Are Still A Number Of Them That Also Recommend To Hold

MSN MONEY: 

MSN MONEY Analysts Recommend 1-800-FLOWERS.com As A Moderate Buy. They Also Have Quite A Few Analysts Who Recommend Hold.

TO BUY OR TO SELL: 

TO BUY OR TO SELL Buy $7.00 - $7.30 Sell $8.00 - $8.50 Current Price $7.03 High Intrinsic Value $12.50 Low Intrinsic Value $8.04 BUY For The Low Risk Investor INTRINSIC VALUE BUY BUY

AMAZON: 

AMAZON 1200 12th Avenue “Earth’s Most Customer Centric Seattle, WA 98144 1-206-266-1000 www.amazon.com Company”

AMAZON, AS IN JUNGLE?: 

AMAZON, AS IN JUNGLE? Offers New, Used, Refurbished And Collectable Items Syndicated Stores Program Amazon Marketplace And Merchants Program Ticker: AMZN Exchange: NASDAQ

GUESS WHO: 

GUESS WHO Person Of The Year, Time Magazine, 1999 #3 On Fortune Magazine’s “40 Under 40” Richest People 2003 Graduated Summa Cum Laude From Princeton University

GUESS WHO: 

Name: Jeffrey P. Bezos Position: CEO Appointed: 1994 “….to build a place where people can come to find and discover anything they might want to buy online.” GUESS WHO

THE COMPENSATION WINNER IS…: 

THE COMPENSATION WINNER IS… eBay Margaret Whitman $2,908,231 AOL Richard Parson $13,245,165 Yahoo Terry Semel $601,980 Runner Up! Mr. Bezos with $81,840

IT’S A JUNGLE OUT THERE!: 

IT’S A JUNGLE OUT THERE!

THE MACD: 

THE MACD Possible Return: 51%-53%

GIVE ME A “V”: 

GIVE ME A “V” Financial Strength: B Timeliness: 2 Technical: 5 Safety: 4 Beta: 2.49

NO BOUNDARIES: 

NO BOUNDARIES France Germany Japan Canada Great Britain WA CA NV KS ND TN VA KY PA DE

RETURNING THE FAVOR: 

RETURNING THE FAVOR Outperformed the S&P 500 Technology Index since August of 2002

ALL ABOUT THE PROFITS: 

ALL ABOUT THE PROFITS A Dollar Made Is A Dollar Earned

REUTERS: 

REUTERS Strong Signal To Sell High Mean Rating

BLOOMBERG: 

BLOOMBERG Strong Signal To Sell!

MAGGIE’S RECOMMENDATION: 

MAGGIE’S RECOMMENDATION BUY: $35-$36 SELL: $53-$55 Current Price $33.29 High Intrinsic Value $63.06 Low Intrinsic Value $40.54 UNDERVALUED BUY For Long-Term

Verisign: 

Verisign Intelligent Infrastructure Services 487 East Middle Road Mountain View, CA. 94043 650-961-7500 www.Verisign.com

Slide39: 

COME AGAIN? Ticker: VRSN Exchange: NASDAQ Internet Services Group Provider Of Critical Infrastructure Services Communications Service Group

Slide40: 

THE MAN BEHIND THE BUSINESS Stratton Sclavos CEO & Director July 1995 Honored For Leadership Success By… Forbes Magazine Morgan Stanley Computer World “We want everyone to reap the benefits of the ongoing revolution in digital commerce and communications.”

Slide41: 

THE OFFICERS $862,058 Sclavos Conner Thompson Coviello $1,262,308 $2,714,447 $684,000

Slide42: 

BATTLING IT OUT SYMANTEC ENTRUST RSA

Slide43: 

MACD Possible Return of 17.86% -- 46.11% BUY SELL

Slide44: 

WHAT’S IT WORTH Timeliness 2/5 Safety 4/5 Technical 2/5

Slide45: 

HOW CAN I SERVE YOU Helps With Internet Related Problems Email Security Solutions Billing And Payment Services Expansion Into New Countries

Slide46: 

STAGE FRIGHT Has Not Outperformed The S&P In 4 Years

Slide47: 

A NET PROBLEM Verisign Needs To Continue To Outperform the S&P In Net Profit Margin To Bring Up Their 5 Year Average.

Slide48: 

REUTERS Hold Is Winning By Only 4 Votes Very Diversified In Their Recommendations

Slide49: 

BLOOMBERG Again, Analyst’s Recommendations Are Pretty Spread Out.

Slide50: 

IN RESULT… Current Price $25.33 High Intrinsic Value $48.57 Low Intrinsic Value $29.14 This Stock Is Only For Risky Investors UNDERVALUED SELL Buy $15-$17 Sell $32-$34

YAHOO: 

YAHOO Internet Communication Global Leader 701 First Avenue Sunnyvale, CA 94089 Phone: (404) 349-3300 www.yahoo.com

SEARCHING AN ENGINE: 

SEARCHING AN ENGINE Ticker: YHOO Exchange: NASDAQ Provides Users With Everything From A-Z 74% Of Revenues Comes From Online Advertising

GLOBAL LEADER: 

GLOBAL LEADER Name: Terry Semel Position: Chairman & CEO Appointed: May 2001 The More We Invest In Our Users The More They Will Invest In Us Restored A Stagnating $8.11 Stock Price to $32.00 Restored Profitability For The First Time In 7 Consecutive Quarters

THE GOLDEN RULE: 

THE GOLDEN RULE AOL – Parsons $13,245,165 eBay – Whitman $2,908,231 Yahoo – Semel $601,980 Google – Schmidt $554,450

THE BATTLE FOR MARKET SHARE: 

THE BATTLE FOR MARKET SHARE

MACD: 

MACD Sell at $36-$38 Buy at $30-$33 Possible Return of 15%-20%

LINE ‘EM UP!: 

LINE ‘EM UP! Financial Strength B+ Timeliness 1 Technical 4 Safety 3

THE ANALYSIS: 

THE ANALYSIS S T R E N G T H Brand Recognition W e a k n e s s vulnerability

THE ANALYSIS: 

THE ANALYSIS Recent Acquisitions T h r e a t s Increased Competition O p p o r t u n I t y

How am I doing?: 

How am I doing? Underperformed the s&p

RISING UP TO THE CHALLENGE: 

RISING UP TO THE CHALLENGE Out performing the S&P In All Categories!

reuters: 

reuters Low Risk Rating Mean Rating of 2 on a 1-5 scale

bloomberg: 

bloomberg Analysts Are Expecting a Higher Q1 Earnings Growth Report B U y

What to do: 

What to do Current Price $34.94 High Intrinsic Value $31.55 Low Intrinsic Value $19.72 OVERVALUED Moderate to short-term investor with holding period of 1-3 years BUY: $28-$34 SELL: $36-$40 BUY

Slide66: 

Vignette Corporation 1301 SOUTH MOPAC EXPRESSWAY  AUSTIN, TX 78746  1-512-743-4300  WWW.VIGNETTE.COM  The Efficiency Experts 

Slide67: 

Ticker: VIGN Founded in 1995 in Austin, TX Produces Content Management Software Went Public in 1999 Exchange: Nasdaq W H A T I S I T T H A T Y O U D O ?

Slide68: 

THE MAN BEHIND THE BUSINESS Thomas E. Hogan President & CEO Appointed in 2002

Slide69: 

Thomas E. Hogan President & CEO Appointed in 2002 THE MAN BEHIND THE BUSINESS “Our goal is to build on our progress and momentum in 2003.”

Slide70: 

HOW DOES HOGAN ADD UP? $10 M $6 M $2 M Hogan (Vignette) Tucci (EMC) Palmisano (IBM) Roberts (FileNet) Total Compensation Options

Slide71: 

PUT ‘EM UP! Management Software Information Technology Organization Software

Slide72: 

M A C D SELL BUY Possible Return of 34%-41%

Slide73: 

THE VALUE IN VIGNETTE Financial Strength B+ Earnings Predictability 25 Price Growth Persistence 5 Stock’s Price Stability 5

Slide74: 

G R O W I N G P A I N S 60 50 40 30 20 10 Sales vs. Qtr. 1yr. Ago Sales vs. TTM 1yr. Ago Sales – 5yr. Growth Vignette Technology S&P 500

Slide75: 

COMPARING APPLES TO APPLES Has Not Outperformed The Industry Or The S&P 500 For The Last Five Years.

Slide76: 

IT’S ALL ABOUT THE BENJAMINS -50 0 50 100 Gross Margin G.M. - 5 years Operating Margin O.M. - 5 years Net Profit Margin N.P.M. - 5 years Vignette Technology S&P 500

Slide77: 

BLOOMBERG Bloomberg Says To Hold The 40-60% Can Change In The Near Future

Slide78: 

REUTERS HOLD The high mean rating means that the company could be in serious trouble. Says To HOLD Says To

Slide79: 

M Y R E C O M M E N D A T I O N S E L L ValuEngine Risk Adverse Good Concepts Current Price $1.29 Intrinsic: High $1.36 Low $1.15 BUY: $1.00-$1.29 SELL: $1.52-$1.58

eBay: 

eBay “I Got It On eBay!”

eBay: 

eBay 2145 Hamilton Avenue San Jose, CA. 95125 1-408-376-7400 www.eBay.com “I Got It On eBay!”

WHAT A CONCEPT!: 

WHAT A CONCEPT! Ticker: EBAY Exchange: NASDAQ * Lead Trading Forum On the Internet * Over 27,000 Categories to Choose From * Uses Paypal for Safe and Easy Transactions

The power of a woman: 

The power of a woman Margaret (Meg) Whitman President, CEO, & Director Appointed in 1998 eBay desires to create an efficient, honest market where everyone has to play by the same rules Margaret (meg) Whitman

Show me the money: 

Show me the money AOL: $13,245,165 Yahoo: $601,980 Google: $554,450 eBay: $2,908,231 Amazon: $81,840 Entry-Level Marketer: $30,000

The head honchos!: 

The head honchos! eBay’s Main Competitor! AOL yahoo google

macd: 

macd Possible Return: 61%-62%

What’s in a name?: 

What’s in a name? Financial Strength A+ Timeliness 2 Beta 2.06 Technical 3 Safety 3

Tickets to the gun show: 

Tickets to the gun show Brand and Market Leadership Double-Digit Growth Innovative Developments

Is that a threat?: 

Is that a threat? Results of litigation proceedings competition Exchange rates

Head of the class: 

Head of the class Has Outperformed the S&P Since October 2002

optimism: 

optimism Analysts are optimistic about eBay’s core businesses and emerging growth vehicles paypal Marketing abroad Makes online transactions easy Customers feel confident about putting their information online 30% of revenues come from foreign countries Major player Untapped diversified markets

reuters: 

reuters Leaning towards a buy for ebay’s stock

bloomberg: 

bloomberg Buy! Buy! Buy!

What would scott do?: 

What would scott do? undervalued Current price $31.97 High intrinsic $76.58 Low intrinsic $49.55

So…: 

So… Buy! Buying at $31.97 + Selling at $60.00 = gain of 87.7% Buy: $36-$37 Sell: $58-$60

Slide97: 

THANK YOU FOR YOUR TIME The Internet Group