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RealTime IT News

Another Meltdown in the Making

For most of the summer, investors watched anxiously as Internet stocks struggled to recover from the twin body blows dealt in March and April, when the large bubble clouding market clarity regarding overvalued 'Net companies finally burst, in spectacular and painful fashion. Many, including myself, expected this summer's shakeout to be followed by a rally beginning in the fall. The theory was that investors would start betting on obvious winners, while the losers would fade away. Now it looks as though the market isn't quite done shaking, and the long-awaited fall rally may be more fervent hope than foregone conclusion. For the fourth consecutive week, all 13 Internet sectors finish down, a losing streak that equals any from the dark days of March and April. Does this mean there won't be a fall rally, an autumn ascent? No, but if things don't turn around soon, any run-up at the end of the year may merely get us back to where we are now, peering up at the heights from which 'Net stocks fell this year and wondering if we'll ever get anywhere close to that point again. The good news (as if there really is any) is that this week's losses aren't nearly as bad as last week's, indicating the freefall may be ending. If so, that may be because the market already has reacted to Q3 earnings, many of which have been preceded by warnings that have driven down shares across all 'Net sectors.

* Market Cap figures are in millions.

  
PERFORMANCE BY SECTOR
                          Ave. 7-Day
                           % Change

Advertising/Marketing        -0.3% 
Security                     -0.9%
Consultants/Designers        -1.8%
Content/Communities          -4.5%
ISPs/Access Providers        -4.7%  
Financial Services           -4.9%
Speed/Bandwidth              -7.0%
Performance Software         -7.1% 
Wireless                     -8.2%
Internet Services            -8.4%
E-commerce Enablers          -8.6%
Search/Portals               -8.8%
E-tailers                   -10.8%

 
TOP 10 GAINERS              7-Day % Gain         Category

NCNT    Netcentives             79.7%        Advertising/Marketing
EELN    E-LOAN                  41.8%        Financial Services
SWBD    Switchboard             35.2%        Content/Communities
VMDC    VantageMed              33.3%        Performance Software
AWEB    Autoweb.com             31.4%        E-Commerce Enablers
MMPT    Modem Media             27.3%        Consultants/Designers
HSTM    HealthStream            27.3%        Content/Communities
LOAX    Log On America          27.3%        ISPs/Access Providers
HOTJ    HotJobs.com             24.3%        Internet Services
STAD    Student Advantage       22.8%        Content/Communities

TOP 10 LOSERS               7-Day % Loss          Category
 
NETP    Net Perceptions        -63.1%        E-Commerce Enablers
PKSI    Primus Knowledge       -60.4%        Performance Software
GDEN    Garden.com             -54.5%        E-tailers
PRVW    Preview Systems        -52.8%        E-Commerce Enablers
LPSN    LivePerson             -52.0%        Internet Services
ACRU    Accrue Software        -50.7%        Internet Services
CLIC    Calico Commerce        -43.0%        E-Commerce Enablers
RAMP    Ramp Networks          -42.9%        Speed/Bandwidth
CAVN    Cavion                 -42.4%        Internet Services
AHWY    audiohighway.com       -41.7%        E-tailers  

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                             WIRELESS PRODUCTS/SERVICES

                        10/4   7-Day   7-Day  1-Month   YTD    Market
      Company          $Close $Change %Change %Change           Cap
                  
IWAV  interWAVE          9.25   0.75    8.8%  -26.7%    N/A     448.2
PRTH  Parthus Tech.     41.50   2.44    6.2%  -19.8%    N/A   2,139.9
WFII  Wireless Facil.   59.44  -1.63   -2.7%  -19.1%   39.6%