| BUSINESSWEEK ONLINE : JULY 31, 2000 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR -- INSIDE WALL STREET
Software Plays That Should Firm Up Buy technology, says Joseph Battipaglia, if you want to win big in the next rally. The accelerating pace of innovation on and off the Web, he argues, is forcing businesses to invest more heavily in info tech than ever before. The chief investment strategist at Gruntal, a New York investment bank, notes that spending in the U.S. on gear and software in 1999 totaled nearly $1 trillion ''and has yet to show any sign of slowing down.'' He says developing software applications for e-commerce will be critical in the New Economy. Battipaglia is betting on three stocks in such a scenario: Microsoft (MSFT), Rational Software (RATL), and VerticalNet (VERT). They are major players, he says, in providing new software applications to enterprises seeking to develop streamlined e-commerce systems. Despite the antitrust furor, Microsoft has greatly enhanced its Windows suite of products, he says, advancing its presence in the server and database market. Its newest database platform and operating system have gained wider acceptance among developers seeking fast and reliable ways to develop e-commerce applications. Battipaglia expects that Microsoft, trading at 73, will find its way back to 100 in 12 months. Rational's tools help developers design and test software. It has formed alliances with IBM and Sun Microsystems to provide customers with streamlined e-development tools. Battipaglia says Rational, now at 99, is worth 130. VerticalNet creates and operates Web sites, or ''storefronts,'' to help small industrial companies bring their businesses to the Web. It has a joint venture with Microsoft to facilitate B2B commerce on the Internet. Battipaglia sees VerticalNet, now at 50, rising to 80 in a year. By GENE G. MARCIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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