B2B Stocks Get a Boost, Thanks to Bear Stearns

B2B stocks were stronger Tuesday, thanks to a batch of research reports from Bear Stearns that included everything from the well-known -- Ariba (ARBA Quote - Cramer on ARBA - Stock Picks) -- to the obscure -- Opus360 (OPUS Quote - Cramer on OPUS - Stock Picks).

Analyst Kaushik Shridharani initiated coverage of several business-to-business stocks, including Ariba, Commerce One (CMRC Quote - Cramer on CMRC - Stock Picks), FreeMarkets (FMKT Quote - Cramer on FMKT - Stock Picks), Clarus (CLRS Quote - Cramer on CLRS - Stock Picks), Opus360 and Global Sources (GSOL Quote - Cramer on GSOL - Stock Picks) with buy ratings. He also set price targets -- 180 for Ariba, 75 for Commerce One, 90 for FreeMarkets, 120 for Clarus, 7 for Opus360 and 90 for Global Sources. (Bear has done underwriting only for Opus360.)

The stocks were climbing, with Ariba up 2%, or 3 1/4, to 143 1/2; Commerce One up 4%, or 2 1/8, to 51 1/16; Opus360 up 87%, or 2 1/16, to 4 7/16; and Global Sources up 30%, or 8 1/8, to 35 1/8.

Shridharani saved his kindest words for Ariba, saying it was "the must-own blue chip e-business intermediary." But there also were a couple of cautious statements within the note. He indicated that there still is an unproven revenue model for e-marketplaces, and he touched on Ariba's long-term strategy.

"While the company has delivered in terms of execution, it could, in our view, be faulted for not being clear, or perhaps consistent, about its long-term strategy," he wrote.

Global Sources and Opus 360 aren't well known. Global Sources runs a B2B marketplace for the import-export business and gives its customers pricing information to help them make buying decisions about materials they use in manufacturing. In its favor, Shridharani notes, is that the company is profitable and has "substantial off-line assets which we believe can be leveraged to seed and grow a substantial online business."

Opus 360 helps businesses find freelancers and independent contractors through its FreeAgent.com Web site. It also sells software to help manage those relationships.

Shridharani writes that Opus 360 is a "compelling opportunity for investors willing to accept a high level of risk," though his endorsement is far from wholehearted. He notes some key concerns include "the need for additional funding, an unproven revenue model, and the need for a timely rollout of enhanced versions of key products."

In other B2B action, Ventro (VNTR Quote - Cramer on VNTR - Stock Picks), which runs online marketplaces for the life sciences industry -- basically, lab equipment -- was up 18%, on an apparent lack of news.