Market Slides on TheStreet.com Rumors
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Internet stocks headed south in afternoon trading despite positive comments from industry analysts and buy-out buzz surrounding shares of TheStreet.com.
internet.com's Internet Stock Index (ISDEX) fell 4.86, or 0.52 percent, to 926.98, the Nasdaq composite gained 6.88 to 4427.65 and the Dow Jones Industrial average plunged 156.68 to 10561.41.
TheStreet.com (TSCM) added 13/16 to 16-13/16. The financial news and editorial Web site has hired investment bank Wasserstein Parella & Co. to explore strategic business opportunities and alternatives, including a possible sale of the company.
After yesterday's close, Lycos (LCOS) reported earnings of $0.03 per share, two cents better than the First Call mean estimate. Merrill Lynch analyst, Henry Blodget reacted by raising his near-term rating from "accumulate" to "buy."
"Lycos reported an impressive quarter, exceeding consensus revenue, EPS and pageview estimates. The outlook for the next few quarters remains strong. We are raising our estimates and, for the following reasons, raising our near-term rating to Buy, with a 12-month price objective of $100. The valuation is cheap by Internet standards (90X C2001E EPS), and we believe there is still upside to our estimates" wrote Blodget in a note to clients. Shares of LCOS added 3-9/16 to 72-5/8.
internet.com analyst, Chris Nerney featured Lycos in his daily Stock Tracker report.
Netcentives (NCNT), an Internet customer loyalty company, announced it will acquire Post Communications for roughly $333 million in stock. Post provides e-mail marketing services. Shares of NCNT lost 2-3/4 to 49-1/4.
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