TODAY: Frequent contributor Dave Sterman discusses the
recent run-up in some B2B stocks, and shakes his head in
wonder. Also, Charles Payne of independent analysis firm
Wall Street Strategies discusses his outlook for the year.
Multex Investor members can also purchase a recent report
from Wall Street Strategies featured below.

Contributing editor Shannon Swingle writes about the
increasing popularity of security software and how that is
affecting the market and the Street. Also, we feature a
report on Vignette (VIGN) from Morgan Stanley, available for
free exclusively to Multex Investor members. All that's
required is a simple registration, so sign up now.

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Below
---------

Investment ideas
Broker reports
Top 10
Free and sponsored reports

==============================================================


Investment ideas
-----------------------------------------

1. B2B insights: B is for "bubble"
Supply chain software stocks surge--but why?

By Dave Sterman, equity research columnist

It's dj vu all over again, as stocks of supply chain
software vendors i2 Technologies (ITWO), Manugistics (MANU),
and SAP (SAP), among others, have climbed sharply in recent
months. These stocks were among the highest flyers at the
height of the Internet bubble, and it's fair to wonder if
investors are slipping back into that old bugaboo,
irrational exuberance.

The surge in prices is based on a fairly dubious investment
thesis: sales are no longer falling and the worst may be
over. But sales are not yet rising either. And analysts are
compelled to look several years out to justify current stock
prices.

Make no mistake--supply chain software is an essential part
of corporate IT strategy. Companies are looking to port much
of their operations onto the Internet so that they can
communicate and transact with vendors in an automated
fashion. Supply chain software links clients and vendors
onto a single platform so they can peek into production
schedules and adjust inventories accordingly.

Click here to read more:
http://www.theinternetanalyst.com/article.asp?docid=5994&nd=0117


2. The real deal: The long and the short
Economic factors that will impact the market and investors--and vice versa

By Charles Payne, principal analyst, Wall Street Strategies

Last year capped the worst two-year stock tumble since 1973-
1974, and effectively eliminated all the hype and hope that
mobilized individual investors during the late 1990s.
(Although it is unlikely that the individuals who remain in
the market continue to expect the returns of yesteryear,
investors probably still expect too much from the broad
market.)

Today, investors are understandably concerned about the
market, and are leery of chasing stocks. However, there will
be a time during the year when you've just missed the boat
(as most missed it last year). And I'm just as sure that
something will test the resolve of the market--an event or
series of events that will send stocks tumbling.

However, I think it is a big mistake for investors to wait
for it, or to wait for some type of testing of the bottom.
By the same token, however, I think it is still important to
take profits and maybe be a little more flexible with stops.
I suspect that after two years of depression, this market
will still suffer from bouts of mental instability. Let
those bi-polar moments work for you. There are tons of funds
on the sidelines waiting to chase this market. Keep a steady
head, don't panic, and stop worrying about the worse case
scenarios. Fundamental change cannot happen until we see a
change of mind among investors.

Below are my thoughts on leading economic indicators, market
trends, my picks of the year , and some sector ideas.

Click here to read more:
http://www.theinternetanalyst.com/article.asp?docid=5906&nd=0117


4. New coverage: Looking for security
The IT security market still looks good, but an attractive market brings on more competition.

By Shannon Swingle, contributing editor

Though many companies in the technology sector are
confronted with crises in valuations and expectations, those
focused on IT security have great promise for growth. The
volume of Internet transactions continues to rise, making it
essential for companies to maintain a secure space in which
this business can be conducted. The fallout from recent
high-profile computer viruses has hammered this point home.
Now recent reports are projecting a sizeable increase in the
demand for IT security solutions.

From its recent survey on IT security, J.P. Morgan found
that companies expect to spend 10.3 percent of their IT
budgets on security next year, compared with 7.4 percent for
this year. With IT budgets expected to expand by 2.7
percent, the firm figures that IT security spending will
grow 43 percent.

Click here to read more:
http://www.theinternetanalyst.com/article.asp?docid=5855&nd=0117


5. B2B insights: Europe: E-business leader?
How do results from SAP (SAP) reflect world markets for e-business applications?

By Steve Butler, senior analyst, eMarketer

Leading enterprise and e-business software maker SAP (SAP)
surprised many technology industry observers last week with
its preliminary announcement of strong fourth quarter
software license sales. Revenues for the quarter were
expected to exceed 1 billion euro, contributing to SAP's
annual revenue growth of 16 percent for 2001.

Click here to read more:
http://www.theinternetanalyst.com/article.asp?docid=5983&nd=0117


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Broker reports
-----------------------------------------

1. SPECIAL REPORT: Mobile Internet earnings preview

CIBC provides fundamental analysis and earnings coverage for
the broader space and individual companies including 724
Solutions (SVNX), Aether (AETH), AvantGo (AVGO), OpenWave
(OPWV), Glenayre (GEMS), and Handspring (HAND). (17-page
report for purchase - $50)
http://www.theinternetanalyst.com/download.asp?docid=25939324&nd=0117


2. WHAT'S HOT?: Weak sisters, Intel, and more

Payne discusses recent market action, including market
reaction to Intel's (INTC) results and associated chip stocks. Also, he touches
on the CPI report, PC-investment strategy, and offers a stock trade
idea in optical systems. (2-page report for purchase - $8)
http://www.theinternetanalyst.com/download.asp?docid=26015340&nd=0117


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Free and sponsored reports
-----------------------------------------

1. FREE RESEARCH REPORT:
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The firm provides a broad industry overview and discusses
what it will take to increase market share in the year ahead. Also,
updates on a number of companies in the sector. This 15-page report,
which usually sells for $50, is free to members for the next 72 hours.
http://www.theinternetanalyst.com/download.asp?docid=25909141&nd=0117


2. FREE SPONSOR REPORT:
Morgan Stanley is has a "neutral" rating on Vignette (VIGN) because of economic uncertainty.

The firm lauds VIGN's technical leadership and
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Investor members can register for the firm's free research
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Top 10
-----------------------------------------

Top 10: Most recommended stocks

This week, Cisco Systems (CSCO) creeps back into the
Top 10 list, but USA Networks (USAI) still tops the list


Presenting the latest valuation and analyst
recommendation data from Multex's proprietary stock-
screening tool applied to the universe of The Internet
Analyst stocks. See tables sorting the top 10 stocks
according to the highest average recommendation.
http://www.theinternetanalyst.com/article.asp?docid=1580&nd=0117


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