Commerce Is King: Action of Auction Fuels ONSALE
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Investors pushed commerce-friendly shares of ONSALE (NASDAQ:ONSL) up 31% the past week as a new breed of buyer scoured the Internet stock space looking for anything that could capitalize on the plethora of buyers and sellers moving to the Web.
Our number crunching shows ONSL led the ISDEX pack followed closely by yet another high for (the YAH?) of Yahoo!, up 26% this year, 20% of that coming since March 3.
We have a hard time believing in YHOO at anything above 10x sales despite the hoopla. Better hunting was found in Infoseek (NASDAQ:SEEK), the little stock that could.
Long trading at a miserable discount to its peer groups--less than half, despite having solid traffic on its site--SEEK finally partly caught up. We think it'll take more than that to get it to move any more, with rumors published in many media that SEEK was a takeover candidate. Any one of the Internet group is a takeover candidate. No news there.
Take New Century Network for example, the group of leading newspaper chains that attempted an Internet service announced yesterday it will close down after four years of effort. This provides a classic example of old media approaching the Internet like an extension of itself.
In the end, too many paperpushers, politics, and unwillingness of the newspaper giants to leverage the Web as its own medium and not an extension of print.
More reasons why new startups and those yet to be born have a chance--those that come from the Net rather than at it still have the upper hand. Our latest tally:
ISDEX March 3 - 10
|ISDEX ®||Ticker||10-Mar-98||% change||Point change||% change|
|Internet Stock Index||symbol||close||from||from||from|
|ISDEX Geometric Average||147.16||9.5%||12.80||47.4%|
|ISDEX Price Wtd. Composite||1,144.92||10.5%||108.77||42.6%|
|Trusted Information Systems||TISX||20.75||3%||$0.63||108%|
|Security First Net Bank||SFNB||10.63||-3%||-$0.38||47%|
|Versant Object Technologies||VSNT||7.13||-7%||-$0.50||-48%|
Meanwhile, fourth quarter ending December 31, 1997, SFNB posts $9.2 million net loss from continuing operations of $9.2 million, or $0.93 per share, compared to a net loss from continuing operations of $9.8 million, or $1.19 per share, for 4Q96.