Robertson Stephens Daily Growth Stock Update on ESPD PKSI EPAY BBSW KEYN AMD CELG CD

Apr 04, 2001, 01:00 ET from Robertson Stephens

    SAN FRANCISCO, April 4 /PRNewswire/ -- The following is being issued by
 Robertson Stephens:
 
     Rating Changes:
 
     eSpeed, Inc.
     (Nasdaq: ESPD) $18.81
     Downgrading to Long-Term Attractive from Buy
     2002E EPS: $0.30, New
 
     Justin Hughes, Financial Services
     "We are downgrading eSpeed from Buy to Long-Term Attractive because we
 believe management's guidance of 50% revenue growth in 2002 is overly
 aggressive," said Hughes. "We are initiating estimates for 2002 that we feel
 are more achievable with revenues of $230 million and after-tax EPS estimates
 of $0.30. We believe investors may be overvaluing the near term revenue
 potential from energy trading. Energy trading is a competitive market and
 EnronOnline dominates, executing approximately 90% of all electronic
 transactions in 4Q00. Because EnronOnline is a closed platform we believe the
 model does have a valid weakness, but the reality today is that most liquidity
 resides in that marketplace. If market participants are able to move trading
 away from EnronOnline and to a neutral platform, then eSpeed (through
 TradeSpark) will still have to compete with InterContinental Exchange ("ICE").
 ICE is another consortia backed neutral platform that is proving to be a
 formidable competitor, in our view. Additionally, NYMEX is moving its energy
 derivatives business to an online platform starting this quarter. We believe
 eSpeed has dominant technology that can be applied to diverse marketplaces,
 making it impossible to forecast all of the potential initiatives that could
 produce revenue for the company in the future. We believe it is possible that
 eSpeed could launch initiatives and/or make acquisitions that will enable the
 company to achieve its targeted growth in 2002, but until such initiatives are
 launched and gain traction, we cannot award the shares our highest rating."
 
     Primus Knowledge Solutions, Inc.
     (Nasdaq: PKSI) $3.09
     Downgrading to Long-Term Attractive from Buy
     2001E EPS: ($0.44), down from ($0.01)
     2002E EPS: $0.19, down from $0.24
 
     Andrew Savitz, Business-to-Business eCommerce
     "On Tuesday, after the market close, Primus pre-announced a significant
 Q1:01 revenue and EPS shortfall," said Savitz. "Although management did not
 provide guidance for Q2:01, we are lowering our revenue and EPS estimates at
 this time. We are also revising our 2001 and 2002 estimates. Based on our
 substantial estimate revisions and more limited visibility over the next
 several quarters, we are lowering our rating to Long-Term Attractive from Buy.
 While we believe that CRM continues to be a customer spending priority, the
 following issues will continue to impact the stock over the near-term, in our
 opinion: risk to our revised numbers, economic slowdown, cash balance, greater
 competitive pressures, and history of operating losses. As a result, although
 we believe Primus offers a solid knowledgebase product for eSupport, we expect
 the stock to continue to be challenged over the near term."
 
     Estimate Changes:
 
     Bottomline Technologies, Inc.
     (Nasdaq: EPAY) $2.91
     Long-Term Attractive
     F2001E EPS: ($0.83), down from $0.01
     F2002E EPS: ($0.66), down from $0.53
 
     Andrew Jeffrey, eProcessing/ePayment
     "Bottomline pre-announced yesterday a significant shortfall to its 3Q01
 guidance," said Jeffrey. "Revenue and EPS are expected to be $18.0 million and
 $(0.35), compared with our previous estimates of $22.7 million and $0.04,
 respectively. This significant deterioration is a result of prolonged decision
 making and the deferral of spending from banks on discretionary technology. In
 light of the foregoing, we have adjusted our estimates significantly downward.
 Our new fiscal 2001 and 2002 revenue and EPS estimates are $75.2 million and
 $87.1 million and $(0.83) and $(0.66), respectively.  These compare with our
 prior estimates of $85.6 and $109.0 million and $0.01 and $0.53, respectively.
 We continue to recommend that investors use their EPAY investments as a source
 of funds for our more established ePayment companies."
 
     Broadbase Software, Inc.
     (Nasdaq: BBSW) $1.63
     Long-Term Attractive
     2001E EPS: ($0.83), down from ($0.13)
     2002E EPS: ($0.50), down from $0.17
 
     Eric Upin, Business-to-Business eCommerce
     "On Tuesday, after the market close, Broadbase pre-announced a significant
 Q1:01 revenue and EPS shortfall," said Upin.  "The company announced the
 departure of their CFO, Rusty Thomas.  The company indicated that Brian Moore,
 currently serving as Sr. Vice President of Worldwide Operations, will act as
 an interim CFO until the company completes its search for new leadership.
 Although management did not provide guidance for Q2:01, we are lowering our
 revenue and EPS estimates at this time. We are also revising our 2001 and 2002
 estimates. Based on our substantial estimate revisions and more limited
 visibility over the next several quarters, we are maintaining our Long-Term
 Attractive rating. While we believe that CRM continues to be a customer
 spending priority, the following issues will continue to impact the stock over
 the near-term, in our opinion: risk to our revised numbers, economic slowdown,
 cash balance, greater competitive pressures, and history of operating losses.
 As a result, although we believe Broadbase offers comprehensive marketing
 automation package (campaign management, analytics, real-time personalization)
 and platform approach (marketing, service), we expect the stock to continue to
 be challenged over the near term."
 
     Keynote Systems, Inc.
     (Nasdaq: KEYN) $10.75
     Long-Term Attractive
     F2001E EPS: $0.19, down from $0.41
 
     Richard Juarez, eCommerce Infrastructure Services
     "Keynote Systems announced that its FY 2Q01 results will fall short of
 expectations," said Juarez.  "The company also lowered its outlook for FY
 3Q01. The company plans to reduce headcount by approximately 13% or 36 staff.
 The move is anticipated to provide annual run rate savings of approximately
 10% to 12% on operating expenses, or $4.0 million to $4.5 million.  Keynote
 will take a one-time charge of approximately $300,000 in FY3Q01 (June) to
 cover severance costs. We believe that the company will likely experience
 reduced demand for its services over the next several quarters as dotcoms
 continue to evaporate and enterprises rein in expenses and cut expenditures on
 URL measurement.  FY 2Q01 revenue from dotcoms and ISPs is estimated at 26% of
 total revenue, down from 35% in FY 1Q01.  We believe and the company confirmed
 that it expects continued customer and revenues losses from dotcoms. We are
 reducing our FY01 revenue estimate from $51.7 million to $47.4 million, and
 lowering our FY01 EPS estimate from $0.41 to $0.19.  We believe that over the
 next two quarters the company will consume approximately $10 million to $13
 million of its current cash balance of approximately $342.0 million.   We
 believe the company's cash is sufficient to enable them to reach operating
 profit in approximately FY 2Q03, two quarters later than our previous
 estimate. We are maintaining our Long-Term Attractive rating based upon the
 company's net cash position of an estimated $11.80 per share at March 31st,
 2001.  To gain back investors' attention and support, we believe that Keynote
 must 1) reverse the declines in customers, URLs measured, and revenue/URL, 2)
 pull forward operational profitability via more effective expense management,
 and 3) leverage and deploy its cash reserves more effectively."
 
     Comments:
 
     Advanced Micro Devices, Inc.
     (NYSE:   AMD) $23.65
     Buy
 
     Eric Rothdeutsch, Semiconductor/Computer Hardware
     "AMD announced last night that it is suing Alcatel Business Systems for
 breach of contract on a flash memory supply agreement," said Rothdeutsch.
 "Announced on April 3, 2000, the two-year agreement was worth around $300
 million to AMD and supported a broad range of Alcatel's products, including
 DSL modems, cellular phones, and telecommunications infrastructure. This
 lawsuit highlights to us a number of points regarding the current weak
 semiconductor environment and AMD.  First, Alcatel's alleged breach indicates
 the severity of the current down-turn. Second, we think it is highly unusual
 for a supplier to sue its customer and is done only as a last resort, if at
 all. Third, given how unusual it is for suppliers to sue customers, AMD must
 feel it has a solid legal leg to stand on, i.e., an ironclad contract, in our
 view.  This speaks to AMD's negotiating ability and its success of
 incorporating "teeth" into its contracts, not just with Alcatel but also the
 other numerous customers that AMD has signed long-term supply agreements with
 over the last 12-18 months. Finally, this lawsuit puts all AMD partners on
 notice that they too could be subject to a lawsuit if they choose to breach.
 The net is that AMD has sent a message to the markets that it is a supplier
 that takes its agreements seriously.  Although it is unclear what the longer-
 term implications are to AMD's customer relationships, its clear that in the
 near term, AMD's agreements provide not only a shield, but also a sword, and
 AMD is not afraid to wield it.  We are maintaining our Buy rating on AMD."
 
     Celgene Corporation
     (Nasdaq: CELG) $18.81
     Buy
 
     Michael King, Biopharmaceuticals
     "We met with Dr. Bart Barlogie of the University of Arkansas Cancer
 Center, and the lead investigator of the Total Therapy II trial, last night at
 the Millennium analyst dinner," said King. "He reiterated his confidence that
 the outcome of the Total Therapy II study will be positive and that investors
 have misinterpreted the recent press release from CELG.   Last night, the
 company released a press release that stated that CELG will enroll an
 additional 300 patients in another study using the Total therapy II regimen.
 Dr. Barlogie stated that the additional 300 patients are being enrolled only
 for molecular biology and pharmacogenomic reasons. In our view, the
 expectations of the Total Therapy II trial has been overblown. The University
 of Arkansas, while an important myeloma center, is the only hospital that uses
 this toxic and aggressive regimen. The actual impact on the sales is
 negligible. Again, we are not changing any of our estimates for Thalomid
 revenue for 2001 or 2002. We believe the Street has misinterpreted a
 relatively benign event. Dr. Barlogie gave a brief update of the blinded data
 last night and there is now a 70% CR rate in the study as a whole.
 Comparatively, the placebo Total Therapy regimen has a historical CR rate of
 only 40%. Therefore, we remain confident that the trial will ultimately show a
 statistically significant improvement when the data is released later this
 year. We expect results to be available sometime this fall; Dr. Barlogie will
 likely present the data at the ASH meeting in November. Thalomid prescriptions
 continue to track strongly this quarter. We believe the company fundamentals
 remain intact and we would be buyers on the weakness. We reiterate our Buy
 rating."
 
     Cendant Corporation
     (NYSE:   CD) $13.89
     Strong Buy
 
     Jay Leupp, REITs/REOCs/Real Estate Services
     Paul Penney, REITs/REOCs/Real Estate Services
     "On Tuesday evening, April 3, we met with Cendant CEO Henry Silverman as
 part of a scheduled gathering arranged by the company for sellside analysts,"
 said Leupp and Penney. "We came away from our meeting convinced that the
 earnings outlook for Cendant continues to look rosy, even in the face of a
 slowing economy. We are maintaining our adjusted EPS estimates of $0.95/share
 for 2001 and $1.09/share for 2002. However, we believe that there is potential
 for modest ($0.02-$0.04/share) upside to these estimates. We intend to review
 our assumptions and projections when the company reports Q1:01 earnings on
 April 19. At a current share price of $13.89, Cendant shares trade at 14.6x
 our 2001 adjusted EPS estimate of $0.95/share, 12.7x our 2002 estimate of
 $1.09/share, and, in our view, continue to represent a compelling value. We
 reiterate our Strong Buy Rating."
 
     Unless otherwise noted, prices are as of Tuesday, April 3, 2001.
 
     Robertson Stephens maintains a market in the shares of eSpeed, Primus
 Knowledge Solutions, Bottomline Technologies, Broadbase Software, Keynote
 Systems and Celegene Corp. and has been managing or comanaging underwriter for
 or has privately placed securities of eSpeed, Primus Knowledge Solutions,
 Bottomline Technologies, and Keynote Systems within the past three years.
     Robertson Stephens, Inc. and its international affiliates ("Robertson
 Stephens") is the leading full-service investment bank focused exclusively on
 growth companies. The firm provides a comprehensive set of investment banking
 products and services, including equity underwriting, sales & trading,
 research, M&A advisory, convertible securities, private capital, equity
 derivatives, and corporate and executive services. Robertson Stephens, Inc. is
 a member of the NASD and all major exchanges. Robertson Stephens has more than
 1,400 employees worldwide with offices in San Francisco, Boston, New York,
 Palo Alto, Chicago, Atlanta, London, Munich and Tel Aviv.
     Robertson Stephens, Inc. ("Robertson Stephens") is a NASD member and a
 member of all major exchanges and SIPC.
 
     The information contained herein is not a complete analysis of every
 material fact respecting any company, industry or security. Although opinions
 and estimates expressed herein reflect the current judgment of Robertson
 Stephens, the information upon which such opinions and estimates are based is
 not necessarily updated on a regular basis; when it is, the date of the change
 in estimate will be noted. In addition, opinions and estimates are subject to
 change without notice. This Report contains forward-looking statements, which
 involve risks and uncertainties. Actual results may differ significantly from
 the results described in the forward-looking statements. Factors that might
 cause such a difference include, but are not limited to, those discussed in
 "Investment Risks." Robertson Stephens from time to time performs corporate
 finance or other services for some companies described herein and may
 occasionally possess material, nonpublic information regarding such companies.
 This information is not used in the preparation of the opinions and estimates
 herein. While the information contained in this Report and the opinions
 contained herein are based on sources believed to be reliable, Robertson
 Stephens has not independently verified the facts, assumptions and estimates
 contained in this Report. Accordingly, no representation or warranty, express
 or implied, is made as to, and no reliance should be placed on, the fairness,
 accuracy, completeness or correctness of the information and opinions
 contained in this Report. Robertson Stephens, its managing directors, its
 affiliates, its employee investment funds, and/or its employees, including the
 research analysts authoring this report, may have an interest in the
 securities of the issuer(s) described and may make purchases or sales while
 this Report is accessible. Robertson Stephens International, Ltd. is regulated
 by the Securities and Futures Authority in the United Kingdom. This
 publication is not meant for private customers.
 
     Fleet Meehan Specialist, Inc. (Member NYSE), an affiliate of Robertson
 Stephens, Inc., is the specialist that makes a market in Alcatel, AutoNation,
 Inc., Cabletron Systems, Inc., Cash America International, Inc., Catellus
 Development Corp., CKE Restaurants, Inc., Computer Associates International,
 Electronic Data Systems Corporation, Ethan Allen Interiors Inc., FelCor
 Lodging Trust Inc., Foundation Health Systems, Inc., Harrah's Entertainment,
 Inc., Hilton Hotels Corporation, The Home Depot, Inc., International Game
 Technology, Jones Apparel Group, Inc., McDonald's Corporation,  The Men's
 Wearhouse, MGM Mirage, Inc., National Semiconductor Corporation, Park Place
 Entertainment Corporation, Public Storage Inc., Scientific-Atlanta Inc.,
 Seagate Technology, Inc., Shurgard Storage Centers, Inc., Station Casinos
 Inc., The Talbots, Inc., Tommy Hilfiger Corporation and Wal-Mart Stores, Inc.
 and at any given time, Fleet Meehan Specialist may have an inventory position,
 either "long" or "short," in this security.  As a result of Fleet Meehan
 Specialist's function as a market maker, such specialist may be on the
 opposite side of orders executed on the floor of the Exchange in this
 security.
 
     Copyright (C) 2001 Robertson Stephens.
 
     Robertson Stephens is a member of the National Association of Securities
 Dealers, CRD number 41271.
 
 

SOURCE Robertson Stephens
    SAN FRANCISCO, April 4 /PRNewswire/ -- The following is being issued by
 Robertson Stephens:
 
     Rating Changes:
 
     eSpeed, Inc.
     (Nasdaq: ESPD) $18.81
     Downgrading to Long-Term Attractive from Buy
     2002E EPS: $0.30, New
 
     Justin Hughes, Financial Services
     "We are downgrading eSpeed from Buy to Long-Term Attractive because we
 believe management's guidance of 50% revenue growth in 2002 is overly
 aggressive," said Hughes. "We are initiating estimates for 2002 that we feel
 are more achievable with revenues of $230 million and after-tax EPS estimates
 of $0.30. We believe investors may be overvaluing the near term revenue
 potential from energy trading. Energy trading is a competitive market and
 EnronOnline dominates, executing approximately 90% of all electronic
 transactions in 4Q00. Because EnronOnline is a closed platform we believe the
 model does have a valid weakness, but the reality today is that most liquidity
 resides in that marketplace. If market participants are able to move trading
 away from EnronOnline and to a neutral platform, then eSpeed (through
 TradeSpark) will still have to compete with InterContinental Exchange ("ICE").
 ICE is another consortia backed neutral platform that is proving to be a
 formidable competitor, in our view. Additionally, NYMEX is moving its energy
 derivatives business to an online platform starting this quarter. We believe
 eSpeed has dominant technology that can be applied to diverse marketplaces,
 making it impossible to forecast all of the potential initiatives that could
 produce revenue for the company in the future. We believe it is possible that
 eSpeed could launch initiatives and/or make acquisitions that will enable the
 company to achieve its targeted growth in 2002, but until such initiatives are
 launched and gain traction, we cannot award the shares our highest rating."
 
     Primus Knowledge Solutions, Inc.
     (Nasdaq: PKSI) $3.09
     Downgrading to Long-Term Attractive from Buy
     2001E EPS: ($0.44), down from ($0.01)
     2002E EPS: $0.19, down from $0.24
 
     Andrew Savitz, Business-to-Business eCommerce
     "On Tuesday, after the market close, Primus pre-announced a significant
 Q1:01 revenue and EPS shortfall," said Savitz. "Although management did not
 provide guidance for Q2:01, we are lowering our revenue and EPS estimates at
 this time. We are also revising our 2001 and 2002 estimates. Based on our
 substantial estimate revisions and more limited visibility over the next
 several quarters, we are lowering our rating to Long-Term Attractive from Buy.
 While we believe that CRM continues to be a customer spending priority, the
 following issues will continue to impact the stock over the near-term, in our
 opinion: risk to our revised numbers, economic slowdown, cash balance, greater
 competitive pressures, and history of operating losses. As a result, although
 we believe Primus offers a solid knowledgebase product for eSupport, we expect
 the stock to continue to be challenged over the near term."
 
     Estimate Changes:
 
     Bottomline Technologies, Inc.
     (Nasdaq: EPAY) $2.91
     Long-Term Attractive
     F2001E EPS: ($0.83), down from $0.01
     F2002E EPS: ($0.66), down from $0.53
 
     Andrew Jeffrey, eProcessing/ePayment
     "Bottomline pre-announced yesterday a significant shortfall to its 3Q01
 guidance," said Jeffrey. "Revenue and EPS are expected to be $18.0 million and
 $(0.35), compared with our previous estimates of $22.7 million and $0.04,
 respectively. This significant deterioration is a result of prolonged decision
 making and the deferral of spending from banks on discretionary technology. In
 light of the foregoing, we have adjusted our estimates significantly downward.
 Our new fiscal 2001 and 2002 revenue and EPS estimates are $75.2 million and
 $87.1 million and $(0.83) and $(0.66), respectively.  These compare with our
 prior estimates of $85.6 and $109.0 million and $0.01 and $0.53, respectively.
 We continue to recommend that investors use their EPAY investments as a source
 of funds for our more established ePayment companies."
 
     Broadbase Software, Inc.
     (Nasdaq: BBSW) $1.63
     Long-Term Attractive
     2001E EPS: ($0.83), down from ($0.13)
     2002E EPS: ($0.50), down from $0.17
 
     Eric Upin, Business-to-Business eCommerce
     "On Tuesday, after the market close, Broadbase pre-announced a significant
 Q1:01 revenue and EPS shortfall," said Upin.  "The company announced the
 departure of their CFO, Rusty Thomas.  The company indicated that Brian Moore,
 currently serving as Sr. Vice President of Worldwide Operations, will act as
 an interim CFO until the company completes its search for new leadership.
 Although management did not provide guidance for Q2:01, we are lowering our
 revenue and EPS estimates at this time. We are also revising our 2001 and 2002
 estimates. Based on our substantial estimate revisions and more limited
 visibility over the next several quarters, we are maintaining our Long-Term
 Attractive rating. While we believe that CRM continues to be a customer
 spending priority, the following issues will continue to impact the stock over
 the near-term, in our opinion: risk to our revised numbers, economic slowdown,
 cash balance, greater competitive pressures, and history of operating losses.
 As a result, although we believe Broadbase offers comprehensive marketing
 automation package (campaign management, analytics, real-time personalization)
 and platform approach (marketing, service), we expect the stock to continue to
 be challenged over the near term."
 
     Keynote Systems, Inc.
     (Nasdaq: KEYN) $10.75
     Long-Term Attractive
     F2001E EPS: $0.19, down from $0.41
 
     Richard Juarez, eCommerce Infrastructure Services
     "Keynote Systems announced that its FY 2Q01 results will fall short of
 expectations," said Juarez.  "The company also lowered its outlook for FY
 3Q01. The company plans to reduce headcount by approximately 13% or 36 staff.
 The move is anticipated to provide annual run rate savings of approximately
 10% to 12% on operating expenses, or $4.0 million to $4.5 million.  Keynote
 will take a one-time charge of approximately $300,000 in FY3Q01 (June) to
 cover severance costs. We believe that the company will likely experience
 reduced demand for its services over the next several quarters as dotcoms
 continue to evaporate and enterprises rein in expenses and cut expenditures on
 URL measurement.  FY 2Q01 revenue from dotcoms and ISPs is estimated at 26% of
 total revenue, down from 35% in FY 1Q01.  We believe and the company confirmed
 that it expects continued customer and revenues losses from dotcoms. We are
 reducing our FY01 revenue estimate from $51.7 million to $47.4 million, and
 lowering our FY01 EPS estimate from $0.41 to $0.19.  We believe that over the
 next two quarters the company will consume approximately $10 million to $13
 million of its current cash balance of approximately $342.0 million.   We
 believe the company's cash is sufficient to enable them to reach operating
 profit in approximately FY 2Q03, two quarters later than our previous
 estimate. We are maintaining our Long-Term Attractive rating based upon the
 company's net cash position of an estimated $11.80 per share at March 31st,
 2001.  To gain back investors' attention and support, we believe that Keynote
 must 1) reverse the declines in customers, URLs measured, and revenue/URL, 2)
 pull forward operational profitability via more effective expense management,
 and 3) leverage and deploy its cash reserves more effectively."
 
     Comments:
 
     Advanced Micro Devices, Inc.
     (NYSE:   AMD) $23.65
     Buy
 
     Eric Rothdeutsch, Semiconductor/Computer Hardware
     "AMD announced last night that it is suing Alcatel Business Systems for
 breach of contract on a flash memory supply agreement," said Rothdeutsch.
 "Announced on April 3, 2000, the two-year agreement was worth around $300
 million to AMD and supported a broad range of Alcatel's products, including
 DSL modems, cellular phones, and telecommunications infrastructure. This
 lawsuit highlights to us a number of points regarding the current weak
 semiconductor environment and AMD.  First, Alcatel's alleged breach indicates
 the severity of the current down-turn. Second, we think it is highly unusual
 for a supplier to sue its customer and is done only as a last resort, if at
 all. Third, given how unusual it is for suppliers to sue customers, AMD must
 feel it has a solid legal leg to stand on, i.e., an ironclad contract, in our
 view.  This speaks to AMD's negotiating ability and its success of
 incorporating "teeth" into its contracts, not just with Alcatel but also the
 other numerous customers that AMD has signed long-term supply agreements with
 over the last 12-18 months. Finally, this lawsuit puts all AMD partners on
 notice that they too could be subject to a lawsuit if they choose to breach.
 The net is that AMD has sent a message to the markets that it is a supplier
 that takes its agreements seriously.  Although it is unclear what the longer-
 term implications are to AMD's customer relationships, its clear that in the
 near term, AMD's agreements provide not only a shield, but also a sword, and
 AMD is not afraid to wield it.  We are maintaining our Buy rating on AMD."
 
     Celgene Corporation
     (Nasdaq: CELG) $18.81
     Buy
 
     Michael King, Biopharmaceuticals
     "We met with Dr. Bart Barlogie of the University of Arkansas Cancer
 Center, and the lead investigator of the Total Therapy II trial, last night at
 the Millennium analyst dinner," said King. "He reiterated his confidence that
 the outcome of the Total Therapy II study will be positive and that investors
 have misinterpreted the recent press release from CELG.   Last night, the
 company released a press release that stated that CELG will enroll an
 additional 300 patients in another study using the Total therapy II regimen.
 Dr. Barlogie stated that the additional 300 patients are being enrolled only
 for molecular biology and pharmacogenomic reasons. In our view, the
 expectations of the Total Therapy II trial has been overblown. The University
 of Arkansas, while an important myeloma center, is the only hospital that uses
 this toxic and aggressive regimen. The actual impact on the sales is
 negligible. Again, we are not changing any of our estimates for Thalomid
 revenue for 2001 or 2002. We believe the Street has misinterpreted a
 relatively benign event. Dr. Barlogie gave a brief update of the blinded data
 last night and there is now a 70% CR rate in the study as a whole.
 Comparatively, the placebo Total Therapy regimen has a historical CR rate of
 only 40%. Therefore, we remain confident that the trial will ultimately show a
 statistically significant improvement when the data is released later this
 year. We expect results to be available sometime this fall; Dr. Barlogie will
 likely present the data at the ASH meeting in November. Thalomid prescriptions
 continue to track strongly this quarter. We believe the company fundamentals
 remain intact and we would be buyers on the weakness. We reiterate our Buy
 rating."
 
     Cendant Corporation
     (NYSE:   CD) $13.89
     Strong Buy
 
     Jay Leupp, REITs/REOCs/Real Estate Services
     Paul Penney, REITs/REOCs/Real Estate Services
     "On Tuesday evening, April 3, we met with Cendant CEO Henry Silverman as
 part of a scheduled gathering arranged by the company for sellside analysts,"
 said Leupp and Penney. "We came away from our meeting convinced that the
 earnings outlook for Cendant continues to look rosy, even in the face of a
 slowing economy. We are maintaining our adjusted EPS estimates of $0.95/share
 for 2001 and $1.09/share for 2002. However, we believe that there is potential
 for modest ($0.02-$0.04/share) upside to these estimates. We intend to review
 our assumptions and projections when the company reports Q1:01 earnings on
 April 19. At a current share price of $13.89, Cendant shares trade at 14.6x
 our 2001 adjusted EPS estimate of $0.95/share, 12.7x our 2002 estimate of
 $1.09/share, and, in our view, continue to represent a compelling value. We
 reiterate our Strong Buy Rating."
 
     Unless otherwise noted, prices are as of Tuesday, April 3, 2001.
 
     Robertson Stephens maintains a market in the shares of eSpeed, Primus
 Knowledge Solutions, Bottomline Technologies, Broadbase Software, Keynote
 Systems and Celegene Corp. and has been managing or comanaging underwriter for
 or has privately placed securities of eSpeed, Primus Knowledge Solutions,
 Bottomline Technologies, and Keynote Systems within the past three years.
     Robertson Stephens, Inc. and its international affiliates ("Robertson
 Stephens") is the leading full-service investment bank focused exclusively on
 growth companies. The firm provides a comprehensive set of investment banking
 products and services, including equity underwriting, sales & trading,
 research, M&A advisory, convertible securities, private capital, equity
 derivatives, and corporate and executive services. Robertson Stephens, Inc. is
 a member of the NASD and all major exchanges. Robertson Stephens has more than
 1,400 employees worldwide with offices in San Francisco, Boston, New York,
 Palo Alto, Chicago, Atlanta, London, Munich and Tel Aviv.
     Robertson Stephens, Inc. ("Robertson Stephens") is a NASD member and a
 member of all major exchanges and SIPC.
 
     The information contained herein is not a complete analysis of every
 material fact respecting any company, industry or security. Although opinions
 and estimates expressed herein reflect the current judgment of Robertson
 Stephens, the information upon which such opinions and estimates are based is
 not necessarily updated on a regular basis; when it is, the date of the change
 in estimate will be noted. In addition, opinions and estimates are subject to
 change without notice. This Report contains forward-looking statements, which
 involve risks and uncertainties. Actual results may differ significantly from
 the results described in the forward-looking statements. Factors that might
 cause such a difference include, but are not limited to, those discussed in
 "Investment Risks." Robertson Stephens from time to time performs corporate
 finance or other services for some companies described herein and may
 occasionally possess material, nonpublic information regarding such companies.
 This information is not used in the preparation of the opinions and estimates
 herein. While the information contained in this Report and the opinions
 contained herein are based on sources believed to be reliable, Robertson
 Stephens has not independently verified the facts, assumptions and estimates
 contained in this Report. Accordingly, no representation or warranty, express
 or implied, is made as to, and no reliance should be placed on, the fairness,
 accuracy, completeness or correctness of the information and opinions
 contained in this Report. Robertson Stephens, its managing directors, its
 affiliates, its employee investment funds, and/or its employees, including the
 research analysts authoring this report, may have an interest in the
 securities of the issuer(s) described and may make purchases or sales while
 this Report is accessible. Robertson Stephens International, Ltd. is regulated
 by the Securities and Futures Authority in the United Kingdom. This
 publication is not meant for private customers.
 
     Fleet Meehan Specialist, Inc. (Member NYSE), an affiliate of Robertson
 Stephens, Inc., is the specialist that makes a market in Alcatel, AutoNation,
 Inc., Cabletron Systems, Inc., Cash America International, Inc., Catellus
 Development Corp., CKE Restaurants, Inc., Computer Associates International,
 Electronic Data Systems Corporation, Ethan Allen Interiors Inc., FelCor
 Lodging Trust Inc., Foundation Health Systems, Inc., Harrah's Entertainment,
 Inc., Hilton Hotels Corporation, The Home Depot, Inc., International Game
 Technology, Jones Apparel Group, Inc., McDonald's Corporation,  The Men's
 Wearhouse, MGM Mirage, Inc., National Semiconductor Corporation, Park Place
 Entertainment Corporation, Public Storage Inc., Scientific-Atlanta Inc.,
 Seagate Technology, Inc., Shurgard Storage Centers, Inc., Station Casinos
 Inc., The Talbots, Inc., Tommy Hilfiger Corporation and Wal-Mart Stores, Inc.
 and at any given time, Fleet Meehan Specialist may have an inventory position,
 either "long" or "short," in this security.  As a result of Fleet Meehan
 Specialist's function as a market maker, such specialist may be on the
 opposite side of orders executed on the floor of the Exchange in this
 security.
 
     Copyright (C) 2001 Robertson Stephens.
 
     Robertson Stephens is a member of the National Association of Securities
 Dealers, CRD number 41271.
 
 SOURCE  Robertson Stephens