Thursday, June 29, 2006

Calls of Note Part 5

- ThinkEquity negative on WebEx Communications (NASDAQ:WEBX)saying they remain concerned about future pricing, primarily around two trends. First is the convergence of IP communications infrastructure and services, which the firm believes will commoditize stand-alone applications. Second, they have noticed a trend toward more on-premise deployments, which feature all-you-can-eat pricing. As a point of reference, they recently heard that Microsoft is pricing Live Meeting as low as $15/user/year, or roughly $1.25 per month. Firm reiterates Sell rating and $25 price target on WEBX, a multiple of 18x FY'06 EPS estimate of $1.38.

Notablecalls: I think this will prove to be an actionable call. But maybe not today. Give it a week or so.

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