Net Stocks Finish Positively
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Internet stocks remained in positive territory during afternoon trading.
Infospace continued falling despite positive analyst comments and news of a new wireless mutual fund. Meanwhile, at a White House conference on the "New Economy," Federal Reserve Chairman Alan Greenspan warned that sharp increases in equity prices were an inflationary risk but assured investors that the Fed was not out to directly target or impact the equity markets with potential interest rate hikes in the near future.
internet.com's Internet Stock Index was up 6.32, or 0.74 percent, to 857.54, the Nasdaq composite rose 20.65 to 4169.54, and the Dow Jones industrial average fell 130.92 to 11033.92.
Shares of Infospace (INSP) slipped 2-27/64 to 105-1/8. Merrill Lynch reiterated its "near-term buy" and "long-term buy" rating on the stock. In addition, Value Trend Capital Management and Berkshire Capital Holdings announced the launch of Wireless Fund, a no-load, open-end mutual fund focused on the wireless industry. Infospace was announced as one of the fund's top 10 holdings.
Network Solutions (NSOL) rocketed 13-5/8 higher to 140-15/16, eBay (EBAY) was off 1-1/16 to 165-15/16, Internet Capital Group (ICGE) rose 5-53/64 to 73-45/64, and CMGI (CMGI) finished 3-5/8 lower at 85-3/8.
Navisite (NAVI) rose 13-1/8 to 98. Investors cheered the company's decision to suspend plans for a secondary public offering due to market conditions. Navisite announced it will instead pursue financing both from strategic investors, including CMGI, and through commercial lines of credit.
Shares of Net2Phone (NTOP) fell 1-1/2 to 47. The company's voice software is integrated into the Netscape 6 browser and Netscape's Netcenter portal. The portal placement of Net2Phone's services will allow Netscape users to call anywhere in the United States for one cent per minute with international rates starting at about four cents per minute.