This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

B2B: Stocks Looking Less and Less Alike

The Race to Profitability

  • On the Net, the Race to Profitability Is On
  • E-tailing: The Karmic Battle Rages On
  • Ad Firms and Portals: Keeping on Spending
  • Why Cash Offers No Cushion for Depressed Net Stocks

    With the froth of late last year a distant memory, investors in business-to-business e-commerce stocks are starting to make sense of what these companies do. Analysts expect that, as a result, they'll start to make informed choices between software makers such as Commerce One (CMRC), for instance, and market makers like VerticalNet (VERT) or PurchasePro (PPRO).

    Meanwhile, setting up exchanges that merely list product availability and prices is quickly becoming so, well, 1999. The new buzz in B2B hinges on completing transactions online. That could mean accepting online payments, linking separate companies' receiving and shipping departments, or permitting online collaboration on manufacturing projects.

    So B2B isn't just about buying and selling anymore. Or, investors hope, at least it's not just about selling.

    The Race to Profitability
    B2B companies
    Company Positive cash flow?* Cash to get there?^ Cash on hand ($ millions)# Cash remaining (quarters)~ Price/sales ratio+
    1. Ariba (ARBA:Nasdaq) Yes -- 249 N/A 92
    2. i2 Technologies (ITWO:Nasdaq) Yes -- 638 N/A 29
    3. Commerce One (CMRC:Nasdaq) Q2 2000 Yes 97 10 70
    4. VerticalNet (VERT:Nasdaq) Q3 2001 Yes 200 8 57
    5. Agile Software (AGIL:Nasdaq) Q4 2001 Yes 311 119 35
    6. E.piphany (EPNY:Nasdaq) Q4 2001 Yes 425 101 52
    7. PurchasePro (PPRO:Nasdaq) Q4 2001 Yes 136 12 47
    8. webMethods (WEBM:Nasdaq) Q4 2001 ++ 198 ++ 33
    9. FreeMarkets (FMKT:Nasdaq) Q4 2002 Yes 174 15 34
    10. Ventro (VNTR:Nasdaq) 2003 Yes 365** 15 10
    Source: Companies, analysts, Securities and Exchange Commission filings.
    *Positive operating cash flow in most recent quarter. If not, when company and analysts project company will reach that threshold.
    ^At current burn rate, excluding loans, will cash last through cash-flow-positive target?
    #At end of most recent quarter, including short-term investments.
    ~Quarters of cash left at current cash-burn rate.
    +As of May 31.
    **Includes $242.5 million raised in an April 3 debt offering.
    ++Not immediately available; data couldn't be found.

    Check Out Our Best Services for Investors

    Action Alerts PLUS

    Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    Quant Ratings

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    Stocks Under $10

    David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    14-Days Free
    Only $9.95
    14-Days Free
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!
    SYM TRADE IT LAST %CHG
    PPRO $1.70 0.00%
    VNET $20.47 0.00%
    AAPL $124.75 0.00%
    FB $80.78 0.00%
    GOOG $524.05 0.00%

    Markets

    DOW 17,826.30 -279.47 -1.54%
    S&P 500 2,081.18 -23.81 -1.13%
    NASDAQ 4,931.8150 -75.9760 -1.52%

    Partners Compare Online Brokers

    Free Reports

    Top Rated Stocks Top Rated Funds Top Rated ETFs