Famous Names See Heavy Losses
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Internet stocks plunged lower in Monday's trading following comments made by Merrill Lynch chief market analyst Richard McCabe.
He suggested that investors reduce their exposure to the technology sector. That recommendation translated into heavy losses for some former high-fliers, including Internet Capital Group, Inktomi and Juniper Networks.
internet.com's Internet Stock Index lost 78.53, or 8.42 percent, to 853.71, the Nasdaq Composite dropped 258.25, or 5.81 percent, to 4,188.20, and the Dow Jones industrial average gained 75.08 to 11,186.56.
Interestingly, Safeguard Scientifics (SFE) has decided to stop investing in business-to-business Internet companies according to an article in today's Wall Street Journal. The company, already well known for investments in such high-profile B2B plays as ICGE (14%), will instead concentrate on the infrastructure sector. Management believes that SFE will now be well positioned to benefit from the overall growth of the Internet. Shares slipped 1-9/16 to 57-15/16 following the news.
Microsoft Corp. (MSFT) lost 3 to 86-1/16. Published reports Monday said the company might be forced to open the source code to Internet Explorer to computer makers to settle antitrust allegations brought by the Justice Department and 19 states.
CMGI Inc. (CMGI) fell 9-13/16 to 83-15/16 and Netcentives (NCNT) was up 3-3/4 to 27-1/4. CMGI Monday took a 4.9 percent stake in the incentive marketer and announced plans for the two to create a new loyalty program for CMGI properties.
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