Desperately Seeking a Bottom

With so many Internet stocks hitting new lows every day, it was only a matter of time before the entire market followed suit. On Thursday, the Nasdaq ended trading at 3074.68, beating its previous low close for the year of 3164.29 on May 23. Meanwhile, internet.com's Internet Stock Index, or ISDEX, finished at 595.79, barely above its May 26 price of 592.61, the current yearly low. And the numbers you see below mark the fifth consecutive week that all 13 Internet sectors are down. That hasn't happened in the 18 months since StockTracker debuted in April '99. It's also only the second time that percentage losses for all sectors were in double digits. The last time that occurred was right before Memorial Day in late May. And after that? Well, most sectors gained (slightly) in the next week, and the week after that saw a phenomenal bounceback in which all groups posted double-digit gains, with two advancing an astounding 31%. Don't count on a repeat performance, though. We have a long way to go before the earnings season from hell is over. At best, we could see a few sectors gain next week; at worst, another across-the-board nosedive. Keep those safety belts fastened.

NOTE: Regarding the presidential election, the first candidate to offer psychological therapy tax credits for Internet investors gets my vote.

*Market cap figures are in millions.

PERFORMANCE BY SECTOR
                           Ave. 7-Day
                            % Change

E-commerce Enablers          -11.5%
E-tailers                    -12.6%
Speed/Bandwidth              -12.6%
Security                     -13.5%
Financial Services           -14.2%
Advertising/Marketing        -14.4%
Wireless                     -15.1%
Performance Software         -15.7%
ISPs/Access Providers        -15.9%
Consultants/Designers        -16.1%
Content/Communities          -17.1%
Internet Services            -18.3%
Search/Portals               -23.5%

TOP 10 GAINERS             7-Day % Gain      Category

RSAS  RSA Security            25.2%          Security
ABTL  Autobytel.com           24.1%          E-Commerce Enablers
CORI  Corillian               23.7%          E-Commerce Enablers
VIGN  Vignette                18.6%          Performance Software
LQID  Liquid Audio            17.4%          E-Commerce Enablers
IMNY  I-Many                  14.9%          E-Commerce Enablers
LNTE  Lante                   13.8%          Consultants/Designers
HAND  Handspring              13.8%          Wireless
IBEM  iBEAM                   12.1%          Speed/Bandwidth
CVGP  Convergent Group        11.5%          Consultants/Designers

TOP 10 LOSERS              7-Day % Loss     Category

BWAY  Breakaway Sol.         -62.5%          Internet Services
RAZF  Razorfish              -53.5%          Consultants/Designers
ITRU  InterTrust             -51.1%          Security
MRBA  Marimba                -50.3%          Internet Services
NAVI  NaviSite               -46.8%          Internet Services
SINA  SINA.com               -44.0%          Portals
EQIX  Equinix                -42.1%          Internet Services
PCLN  priceline.com          -42.0%          E-tailers
ILND  Interland              -41.6%          Internet Services
TFSM  24/7 Media             -41.2%          Advertising/Marketing

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                           WIRELESS PRODUCTS/SERVICES

                       10/11  7-Day   7-Day  1-Month   YTD    Market
      Company         $Close $Change %Change %Change           Cap

HAND  Handspring       68.25   8.25   13.8%   83.5%    N/A   8,561.1
PALM  Palm             46.94   1.50    3.3%   -3.2%    N/A  26,535.9
WFII  Wireless Facilit 60.81   1.38    2.3%  -18.8%   50.1%  2,567.9
IIIM  i3 Mobile         6.00   0.00    0.0%  -20.0%    N/A     136.8
AETH  Aether Systems   83.19  -6.81   -7.6%  -38.8%   25.1%  3,250.9
MCOM  Metrico