RealTime IT News

Buy the Rumor, Sell the News

Investors bought the rumor and sold the news, sending shares of Cisco Systems plunging 4-1/4 to 58-1/2, following the networker's better-than-expected quarterly earnings. After reporting $0.14 per share after the bell yesterday, the stock fell victim to a bout of profit taking.

Cisco's woes dragged tech stocks lower for the third straight day this week, and sent the ISDEX tumbling 6.01%. The NYSE fell in sympathy with techs, dipping 168.97 to 10,367.78, while the Nasdaq neared key support levels in its search for a bottom, shedding 199.94 to 3,385.07.

High flying Net portals took much of today's damage, with InfoSpace erasing 7-31/32 to 45-13/16. Go2Net headed deeper into the red, down 8-15/16 to 36, while shares of Yahoo! quietly bucked the trend, adding 1-7/16 to 118-7/8.

B2B companies were blindsided across the board. Shares of VerticalNet edged lower by 4-5/8 to 39-7/16. Commerce One sank 1-13/16 to 45-15/16, while PurchasePro.com inched closer to its 52-week low, down 3 to 24-1/4.

Shares of K-tel International crumbled 1-7/16 to 2-1/4, or 39%, on reports that the music e-tailer is set to receive the boot from the Nasdaq National Market after failing to meet minimum listing requirements.

It's been some wild ride for K-tel International. After posting a double and triple bagger just over two years ago, the company has since fallen out of favor with day-traders who once clamored to the stock's narrow and subsequently volatile float. Executives privy to the looming delisting have been scrambling to dump insider shares ahead of the news.