Inside Wall Street
A PURE PLAY ON THE INTERNET?
Keeping up with the Internet--that fast-growing worldwide web connecting computer networks used by some 20 million people--is no easy task. Some people connect with the Internet through Mecklermedia, a technology publishing company that certain money managers regard as a pure play on the Internet.
Mecklermedia publishes magazines that cater to emerging information technologies. Its chief periodical is Internet World, with a circulation of 100,000 that's projected to double by yearend--up sharply from just 20,000 six months ago. In addition, Mecklermedia publishes CD-ROM World and Virtual Reality World.
Internet World provides information on ways of linking with the Internet. Users gain access to the networks and databases of users such as universities, libraries, governments, and businesses worldwide. CD-ROM World is all about applying technology using a laser to read data recorded on a disk. Virtual Reality reports on technologies that let users participate in three-dimensional environments generated by computers.
Now at 10, "Mecklermedia's stock is just starting to reflect the vast business opportunities in Internet," says hedge-fund manager Brian Warner, general partner at Performance Capital, who has been accumulating shares. Another big stakeholder: Omega Advisors, headed by Leon Cooperman.
Warner notes that Mecklermedia is launching in September an on-line shopping mall and yellow-page directory for shoppers, in combination with such companies as Digital Equipment and General Motors' Electronic Data Systems. So Warner sees the company's earnings soaring next year to 80 cents a share on revenues of $16 million, up from 1994's estimated 5 cents on revenues of $8 million. The stock, he says, could double in a year.GENE G. MARCIAL