Internet Stocks, Egghead Software, Dell and Keane

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A selection of some of the most intriguing tech stock ideas on the Web. The items presented do not represent the views of

TheStreet.com

; rather, the collection is offered as a service to our members who may be scanning the Web for stock-related information.

Internet stocks

Steve Harmon

Steve Harmon

tracks Internet stocks on behalf of Net-focused publisher and trade show producer

Mecklermedia Corp.

(MECK)

. In his twice-daily columns, he analyzes business plans and assumptions. He also has constructed an index of Internet stocks which, this week, he expanded to include 50 companies. His comments about some of the new additions to ISDEX are provocative. The growing concern about security on the Web prompted him to add

Axent Technologies

(AXNT)

,

Cyberguard Corp.

(CYBG)

,

Cylink

(CYLK)

and

Secure Computing

(SCUR)

.

Not only is this group positioned to exploit business opportunities, Harmon also thinks some of these companies may be candidates for consolidation. Some kind words are also offered about software company

Intuit

(INTU) - Get Report

. Harmon sees "fresh blood in several Web initiatives. We expect more moves in this space from (company founder) Scott Cook, one of the few in software that actually beat Microsoft and still does in finance software."

More information can be found at:

www.yahoo.com

Egghead Software

Internet World

The decision by

Egghead Software

(EGGS)

to break up the retail store operation and try to put the company back together on the Web has paid off well for investors. On news Egghead would close its last 80 bricks-and-mortar outlets and focus on direct selling over the Net, company shares fell to $6.37. This week they traded near $12. But neither management nor Wall Street analysts know how the story will end.

Internet World's

Whit Andrews says it's still uncertain how software sales on the Net will be handled: box-and-ship or download-and-install; buy it, rent it, or use what you need only for as long as you need it. Company CEO George Orban concedes, "I don't think we're going to know for a while yet." Nor do Wall Street analysts. Andrews points out no analyst surveyed by

First Call

or

Zacks

has made a forecast of Egghead's earnings.

TSC's

Herb Greenberg

discussed Egghead's prospects in a

column earlier this week.

More information can be found at:

www.internetworld.com

Dell

Robert Metz

Compaq's

(CPQ)

surprising announcement that it will only break even this quarter got the week off to a bad start for its shares and those of other PC makers. But financial journalist

Bob Metz

hears analysts at

Goldman Sachs

explaining why at least one box builder stands head and shoulders above the rest:

Dell

(DELL) - Get Report

.

The company's decision to move to a direct-sales, build-to-order business model is now being widely imitated. "Dell's ability to correctly identify the marginal utility of the buyer," is the key according to Goldman analysts Richard Schutte and Biagio Manieri. The company's management not only knows which add-ons and step-up components customers are willing to buy, it also knows how to inventory those parts with the least risk.

Analysts at Goldman Sachs praise Dell for "transferring ownership of depreciating components to the customer faster and taking ownership itself for a mere six days, or 1% of the component's useful life."

Does this make Dell stock, with a P/E ratio of almost 53, a buy? Metz doesn't say it is, but it's clear he'd recommend serious consideration if the shares pulled back.

TSC

assessed the merits of Dell shares in a recent

article.

More information can be found at:

www.talks.com

Keane

Online Investor

The

Year 2000 problem

has put the spotlight on a number of companies offering solutions. Unquestionably, many of them will have hyper-sales growth in the next two years helping companies' information technology systems deal with the arrival of the millennium, but, once that's done, what's next?

According to

Online Investor

, one company that appears well positioned for life after the Y2K deadline is

Keane

(KEA)

.

Keane has more than 30 years of experience providing software services. Its business has grown as a result of Fortune 1000 companies believing that Keane can provide better long-term IT management for improved productivity than they can by doing it themselves. And, in this high-tech labor market shortage, it doesn't hurt that Keane's already got talent on board.

Online Investor

analysts say the Year 2000 problem is a huge new business development opportunity for Keane, putting the company into a position to convert Year 2000 jobs into new, long-term contracts. "The Year 2000 bug is a springboard for Keane's future growth," they say.

More information can be found at:

www.yahoo.com