RealTime IT News

Mark Cuban Sells Mamma.com Stake

Mamma.com tumbled 15% Friday on news that Internet billionaire Mark Cuban had sold his highly-publicized stake in the company.

Cuban had taken a 6.3% stake in the company in March, which required disclosure under SEC rules because he held more than a 5% position.

Cuban acquired his shares two days after shares of MAMA soared 150% on a surprise profit.

Cuban told internetnews.com that he took issue with the company's $16.6 million private placement announced June 29.

"I hate when companies do PIPES-type transactions to raise money," Cuban said in an email. "It's dilutive, and I hate being diluted...that simple."

According to SEC filings, Cuban bought his shares on March 4, when the stock traded between 10.80 and 12.99, and sold on June 29, when it traded between 12.91 and 14.23.

Stocks fell Friday on weaker than expected jobs and wage growth, which raised concerns about the strength of the economic recovery, but the report could also mean that the Federal Reserve may not have to raise interest rates drastically to curb inflation.

The Nasdaq fell 32 to 2015, the S&P 500 lost 11 to 1128, and the Dow slumped 101 to 10,334. Volume declined to 1.09 billion shares on the NYSE, and 1.2 billion on the Nasdaq. Advancers led 21-11 on the NYSE, but decliners led 15-14 on the Nasdaq. Downside volume was 62% on the NYSE, and 70% on the Nasdaq. New highs-new lows were 39-9 on the NYSE, and 26-21 on the Nasdaq.

Apple fell after delaying the release of its new iMac until September.

It was a big day for earnings warnings, with WebMethods , Blue Martini , eSpeed , Sybase , Concurrent , Informatica , Applied Innovation and Maxtor all slumping after revising their outlooks lower.

Qwest climbed on news that Verizon is buying the company's wireless assets.

Benchmark Electronics gained after raising guidance.

Covansys climbed after resolving accounting issues.

Nortel dropped on a CIBC valuation downgrade.

Homestore rose after renewing its agreement with AOL.

Netflix fell on subscriber growth that wasn't quite as strong as investors were hoping for.

Note: The Technical Analysis will return on July 7.