RealTime IT News

ASX Internets Hammered In Wake Of US Fall

Australian Internet stocks were hammered in Thursday morning trade as US Internet plays continued their fall Wednesday. The US' Nasdaq plunged 3.92% or 189.33 points to 4644.67 while internet.com's Internet Stock Index dropped 67.72, or 6.41 percent, to 988.95 on Wednesday.

After lengthy talks AAPT (AAP) and US based Internet giant America Online Inc. (AOL) announced a 50/50 joint venture to run AOL Australia Thursday morning. AAPT stock rose just 10 cents to $10 at midday. No financial details regarding the joint venture were made available but are expected later in the day.

Jumbomall.com (JUM) leapt 13.9% to 41 cents after signing a heads of agreement with Samsung Corp. to release and market an Internet based telephone system, the Jumbo i2 Phone. The Jumbo i2 phone utilizes Internet Protocol to provide cheap telephone calls. A special handset will allow one user to remotely walk another through web sites.

Secure Networks (SNX) hit a high of $19.90 Tuesday on the back of news that it will be included in the revamped ASX 200 Index (ASX). However, by midday Thursday profit takers had pushed the stock down to $14.10, off $2.64 or 15.7% for the day.

Thursday's miner in the spotlight was General Gold Resources (GGR). At midday the stock was down 8.5% at 9.6 cents after hitting an intraday high of 12.5 cents. General Gold announced it will invest $500,000 for a 25% stake in Internet directory product Smart Guide 2000. Volumes on the stock have been uncharacteristically heavy over the past 2 days.

Stock in Queste Communications (QUE), Chariot Internet (CTI) and Central Exchange (CXL) leapt on news that Central Exchange has signed a memorandum of understanding with Chariot to create an Internet-based national telephony network. At midday CXL was up 10.1% to 38 cents, Chariot 7.6% to $1.98 and Queste (a large stake holder in CXL) 1.85% to 55 cents.

Coolgardie Gold (COG) continued its rise, bucking the general Internet trend. At midday Coolgardie was up 12.2% to 23 cents after announcing it is increasing its stake in Sm@rtTrans to 45%. Sm@rtTrans is now trialing an Internet version of its route optimization product, e-route.

Sausage Software (SAS) and Solution 6 (SOH) were among the hardest hit by the Thursday morning down turn in Internet and technology stocks. Sausage fell 7.1% or 49 cents to $6.41 and Solution 6 6.5% or 80.7 cents to $11.55 at midday.