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Up 7% In Week: ISDEX Jumps On Dealmania

Internet stocks showed comeback power since June 2 with ISDEX, The Internet Stock Index, gaining an impressive 7% compared to the broad market's less than 2% posting.

Leading the turnaround for the group, which was headed south in early summer doldrums, was CNET (NASDAQ:CNWK) which unloaded Snap! off its balance sheet while it lets NBC pay to grow its equity in the Web directory service. The new sign on the door: "Snap is now an NBC property." Or it certainly will be if NBC pursues its 60% rights, which some observers think could go further.

The bubbling media-Web space led to speculation and some discounted deal valuations in a handful of stocks in ISDEX, notably in content and navigation.

The numbers June 2--June 9:

Mecklermedia's

09-Jun-98

% change

Point change

ISDEX .

close

from

from

The Internet Stock Index

02-Jun-98

02-Jun-98

ISDEX Geometric Avg.

139.63

7.1%

9.21

ISDEX Price Wtd.

1,445.88

9.7%

128.19

NASDAQ

1,800.76

2.2%

38.97

DJIA

9,049.92

1.8%

158.68

CNET

CNWK

$45.13

33%

$11.13

Sportsline USA

SPLN

$29.63

30%

$6.88

Network Solutions

NSOL

$43.63

25%

$8.69

RealNetworks

RNWK

$26.38

22%

$4.72

Mindspring

MSPG

$63.25

19%

$9.97

Amazon.Com

AMZN

$51.25

17%

$7.56

Doubleclick

DCLK

$37.00

17%

$5.25

Earthlink Network

ELNK

$63.50

15%

$8.50

Spyglass

SPYG

$10.94

15%

$1.44

Concentric

CNCX

$25.88

15%

$3.38

Excite

XCIT

$65.00

15%

$8.38

PairGain

PAIR

$15.06

15%

$1.94

America Online

AOL

$88.63

15%

$11.25

Infoseek

SEEK

$27.25

14%

$3.44

E*TRADE

EGRP

$23.44

14%

$2.94

USWeb

USWB

$20.75

14%

$2.56

Broadvision

BVSN

$17.38

13%

$2.06

Yahoo!

YHOO

$117.88

12%

$13.06

@Home Network

ATHM

$38.00

12%

$4.00

CheckFree

CKFR

$25.06

11%

$2.53

PSINet

PSIX

$11.19

10%

$1.03

Onsale

ONSL

$26.25

9%

$2.25

Netscape

NSCP

$24.19

8%

$1.81

Open Market

OMKT

$17.25

8%

$1.28

Network Associates

NETA

$43.88

8%

$3.25

CMG Info

CMGI

$44.63

8%

$3.13

IDT Corp

IDTC

$27.25

7%

$1.88

Security First Net Bank

SFNB

$10.38

6%

$0.63

CKS Group

CKSG

$21.25

6%

$1.13

Egghead.com

EGGS

$7.81

5%

$0.38

Cylink

CYLK

$10.56

5%

$0.50

Mecklermedia

MECK

$21.00

4%

$0.81

Cyberguard

CYBG

$12.31

4%

$0.44

Axent

AXNT

$25.38

1%

$0.22

CheckPoint Software

CHKPF

$28.50

0%

$0.13

CDnow

CDNW

$17.31

0%

$0.06

Versant Object Technologies

VSNT

$5.13

0%

$0.00

WavePhore

WAVO

$12.19

-1%

-$0.06

Metricom

MCOM

$9.69

-1%

-$0.06

Broadband Technologies

BBTK

$5.56

-1%

-$0.06

Lycos

LCOS

$53.56

-1%

-$0.78

Intuit

INTU

$46.00

-2%

-$0.81

Verisign

VRSN

$27.38

-3%

-$0.75

Open Text

OTEXF

$16.81

-3%

-$0.56

Secure Computing

SCUR

$9.50

-5%

-$0.50

Security Dynamics

SDTI

$19.50

-5%

-$1.03

CyberCash

CYCH

$14.25

-6%

-$0.94

N2K

NTKI

$19.13

-7%

-$1.38

VocalTec

VOCLF

$12.44

-20%

-$3.06

NewsEdge

NEWZ

$10.63

-21%

-$2.75

TOTAL

1,445.88

10%

125.81

SIMPLE AVERAGE

28.92

10%

2.52

The news behind the moves:

  • 98.06.08: AOL (NYSE:AOL) agrees to acquire Israel-based Mirabilis, maker of instant messaging product ICQ, for $287 million cash. ICQ is the pioneering instant messaging service/software for the Web that notifies users when friends and colleagues are on the Web at the same time and allows them to chat or exchange files in real-time. The deal values ICQ registered users at $23.92 each according to our analysis. AOL may also pay more based on growth targets in the next few years.

  • 98.06.05: CMG Info (NASDAQ:CMGI) pops back up with a 14% gain to $39 per share after one of its portfolio investments, Engage Technologies, announces reaching 12 million Web user profiles. Another CMG investment, Lycos (NASDAQ:LCOS), prices its 2.25 million share offer at $50.00 per share. CMG, which owns 42% of LCOS, is selling 250,000 in that offer.

  • 98.06.05: Network Solutions (NASDAQ:NSOL) soars 21% to $39.25 per share after a White House recommendation regarding domain name policy continues in the debate and wait stage. We said numerous times in the Internet Stock Report that momentum and inertia work in NSOL's favor, and so they have.

  • 98.06.04: Open Market (NASDAQ:OMKT), a leader in e-commerce software, receives an investment from chip king Intel (NASDAQ:INTC) which acquires 330,000 restricted shares that represents about a 1% stake, sending OMKT up 11% to $17.25 per share.

  • 98.06.03: PairGain (NASDAQ:PAIR) gains on news that Rockwell debuts a new high-speed modems featuring PairGain's DSL technology. The modems receive data at one meg per second and send at 128 kbps upstream (ISDN speeds) using standard telephone wires. Maybe DSL is about to deliver after all.