- The Washington Times - Monday, October 23, 2000

Wall Street analysts say Lifemiders Inc. is a strong company despite its stock performance, which has suffered from the overall volatility of the Internet sector.
Though the Herndon company is focused on electronic advertising and personalized e-mail, its stock has been dragged down along with other big names like Yahoo and Sterling-based America Online.
Lifeminders enjoyed its 52-week high of $94.81 on March 14, and its 52-week low of $8.57 on Oct. 13. It closed Friday on the Nasdaq at $11.87 per share.
"We note that this performance was achieved in an environment where almost one-third of the e-marketing stocks that we follow pre-announced down quarters resulting from dot-com woes," said Perry Boyle, analyst with Thomas Weisel Partners in New York.
Mr. Boyle contends that it was the volatile Internet sector and the stigma attached to dot-coms, and not the company, that brought Lifeminders stock price into single digits.
Lifeminders' stock tumbled along with Yahoo and DoubleClick.com after the latter two companies reported lower advertising revenue for the third quarter.
Fortunately for Lifeminders, its stock price rose several points last week, after it reported third quarter net losses fell 48 percent to $4 million (17 cents) from $7.7 million (44 cents) for the like quarter last year. But despite the good news on third-quarter loses, and an increase in visitors and advertising on its Web site, Lifeminders continues to suffer.
"We believe Lifeminders has been overly penalized for the dot-com advertising spending meltdown, as well as for the slowdown in overall media trends," said Mr. Boyle in a research report.
The company's users grew 15 percent to its current 19.5 million, while new advertisers such as First USA, Discover Financial Services, Time Warner Inc. and Johnson & Johnson all have signed on with long-term contracts.
The company is seeing larger deals with longer contract lengths, according to Mr. Boyle's research report.
"The company is trading below what we believe is a fair value of $24 [per share]," Mr. Boyle said. "Lifeminders reported a strong third quarter even in a weak dot-com environment."
Lifeminders officials were unavailable for comment.
Analysts say there's been little allure for Wall Street investors to any of those technology stocks lately. So, despite individual performance, they all suffer.
"We think the stock's valuation is attractive, but we do not see as much upside to our estimates as we did a month ago," says Henry Blodget's research report for Merrill Lynch Global Securities.
In fact, the entire sector will continue to suffer, according to Mr. Blodget.
Market leader Yahoo, for example, enjoyed a stock price of $125 per share earlier in the year, but has been trading around $50 per share over the past quarter. Lifeminders remains one of the strongest stocks in the sector, according to the report, which suggests holding on to the stock.
"They need to increase their mix of advertisers relative to dot-com advertisers, that's probably the number one thing," said Mr. Boyle of Thomas Weisel. "The number two thing the company needs to do is to achieve profitability as soon as possible."
That would turn a few heads on Wall Street, he said.

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