RealTime IT News

Overdoing Etail? Etail Enablers & Sellers Gain Most

Web-based retail, or etail as the word du jour goes, is the hottest sector of Internet stocks with a 24% gain in two weeks. Close behind are the etail enablers, those that make the 'ka-ching' happen behind the scenes. How does a 13% rise grab you?

Year to date enablers lead the pack through July 7 with 145% straight percent gain, beating the portals in returns.

It makes you wonder why mainstream media regurgitates portalmania as if that's the last word in Internet stocks. Yes they've had digital hormone-induced growth. It's time for a new story and plenty of Internet stocks to choose from, content being primary in our view as we believe it drives commerce. Here's the stat fest, our latest abacus tweaking:

Mecklermedia's   07-Jul-98 % change Point change
ISDEX ®   close from from
The Internet Stock Index     23-Jun-98 23-Jun-98
where Wall Street meets the Web        
ISDEX Geometric Avg.   166.02 10.0% 15.14
ISDEX Price Wtd.   1,915.28 13.0% 219.88
NASDAQ   1,908.11 3.4% 63.54
DJIA   9,085.04 2.9% 256.58
         
         
CONTENT        
CNET CNWK $66.13 -2% -$1.44
Sportsline USA SPLN $36.00 0% $0.00
WavePhore WAVO $10.88 -14% -$1.75
Mecklermedia MECK $26.00 24% $5.00
NewsEdge NEWZ $8.25 -6% -$5.13
TOTAL   $147.25   -$3.31
WEIGHTED AVERAGE   $29.45 1% -$0.66
         
ACCESS/SERVICES        
Earthlink Network ELNK $71.22 -7% -$5.16
Mindspring MSPG $93.25 19% $14.88
PSINet PSIX $14.88 17% $2.13
Concentric CNCX $37.13 38% $10.13
Metricom MCOM $7.25 -17% -$1.50
TOTAL   $223.72   $20.47
WEIGHTED AVERAGE   $44.74 10% $4.09
         
COMMERCE RETAILERS        
Amazon.Com AMZN $122.13 32% $29.44
N2K NTKI $22.31 21% $3.81
Onsale ONSL $24.81 -10% -$2.69
CDnow CDNW $23.19 23% $4.31
E*TRADE EGRP $22.88 8% $1.75
Egghead.com EGGS $15.50 91% $7.38
TOTAL   $230.81   $44.00
WEIGHTED AVERAGE   $38.47 24% $7.33
         
         
COMMERCE ENABLERS        
CMG Info CMGI $68.63 13% $7.88
USWeb USWB $26.31 10% $2.50
Network Solutions NSOL $44.38 0% $0.00
Doubleclick DCLK $62.00 44% $18.81
CheckFree CKFR $29.00 6% $1.69
CyberCash CYCH $12.94 -11% -$1.56
CKS Group CKSG $22.50 8% $1.75
TOTAL   $265.75   $31.06
WEIGHTED AVERAGE   $37.96 13% $4.44
         
         
NAVIGATION/AGGREGATORS        
Excite XCIT $96.25 16% $13.50
Yahoo! YHOO $191.00 29% $42.94
Lycos LCOS $85.00 24% $16.25
America Online AOL $108.88 2% $2.63
Intuit INTU $60.75 6% $3.25
@Home Network ATHM $48.38 23% $9.13
Infoseek SEEK $35.31 16% $4.88
TOTAL   $625.56   $92.56
WEIGHTED AVERAGE   $89.37 17% $13.22
         
SOFTWARE        
RealNetworks RNWK $35.50 -1% -$0.50
Broadvision BVSN $25.63 32% $6.19
Open Market OMKT $18.06 0% -$0.06
Spyglass SPYG $12.00 4% $0.50
Netscape NSCP $36.00 37% $9.81
Open Text OTEXF $14.00 -8% -$1.19
Versant Object Technologies VSNT $4.25 -3% -$0.13
TOTAL   $145.44   $14.63
WEIGHTED AVERAGE   $20.78 11% $2.09
         
         
SECURITY        
Verisign VRSN $42.25 10% $4.00
Cylink CYLK $11.69 12% $1.25
Network Associates NETA $48.75 8% $3.44
Axent AXNT $29.00 -1% -$0.38
Cyberguard CYBG $10.00 13% $1.13
Security First Net Bank SFNB $17.00 62% $6.50
Secure Computing SCUR $10.75 19% $1.75
CheckPoint Software CHKPF $29.00 1% $0.38
Security Dynamics SDTI $17.88 5% $0.78
TOTAL   $216.31   $18.84
WEIGHTED AVERAGE   $24.03 10% $2.09
         
IP COMMUNICATIONS        
IDT Corp IDTC $26.88 -4% -$1.13
VocalTec VOCLF $12.88 11% $1.25
TOTAL   $39.75   $0.13
WEIGHTED AVERAGE   $19.88 0% $0.06
         
HIGH-SPEED SOLUTIONS        
PairGain PAIR $16.31 -15% -$2.81
Broadband Technologies BBTK $4.38 -7% -$0.31
TOTAL   $20.69   -$3.13
WEIGHTED AVERAGE   $10.34 -13% -$1.56
         
         
OVERALL TOTAL   4,145.59 13% 461.61
SIMPLE AVERAGE   60.96 13% 6.79

  • 98.07.06: Egghead.com (NASDAQ:EGGS), which we've long said in this report was undervalued, finally gets some respect after disclosing its surplusauction.com Web site revenue fuels 95% revenue growth from last quarter. EGGS zooms 64% to $14.81 per share, also a new high for the Web-based retailer.

  • 98.07.06: Yahoo! (NASDAQ:YHOO) hits $200 per share, up 15%, leading us to reiterate an expected stock split here again.

  • 98.07.03: Broadvision (NASDAQ:BVSN) stock gets initial coverage by Wheat First with a "buy." We estimate BVSN trades at 11x 1998 sales. First quarter revenue was $10 million with about $500k loss. Broadvision's one-to-one marketing software solution is designed to deliver the holy grail of marketing: what people want based on who they are. A lot of competition coming, though, as every startup also sees guts and glory in the same story.

  • 98.07.03: Netscape (NASDAQ:NSCP) again climbs with a phenomenal 41 million shares traded, about 10x average! Shares up 15% to $41.31 per share, getting close to its 52-week high. Netcenter deals for white and yellow page directories from infospace.com fuel the rise today. Co-founder and mascot Marc Andreessen told us back in January that content was king, Netcenter was a focus. If Marc's on the job we think it'll come out fine. We'd still like a new twist though from a true Web pioneer rather than playing "let's be Yahoo!"

  • 98.06.30: Sportsline USA (NASDAQ:SPLN) shares zoom after it agrees to acquire golf etailer International Golf Outlet Inc. Terms = 46,924 SPLN shares valued at $1.65 million and $350k cash. The deal could reach another $1.5 million if the etail effort meets targets over next three years. We think the buy was a good one for Sportsline and a cheap one. Audience leverage necessitates commerce at some juncture for most content sites. Content and commerce, affinity marketing, are central to the Web. SPLN closes up 16% at $39.563 per share on double average volume, 1.2 million shares.

  • 98.06.29: AOL (NYSE:AOL) plans to offer $500 million common in a block trade off of its universal shelf registration statement. The move will help cash up the online king and could put a lot of pressure on Web firms without the deep pockets to compete in everything from access to content to search to IP telephony.

  • 98.06.29: Mecklermedia (NASDAQ:MECK), the global leader in Internet trade shows and news, announces its second annual Internet World Summer '98, being held July 13-17, 1998, at Chicago's McCormick Place. (Mecklermedia also produces this report).

  • 98.06.25: Mindspring (NASDAQ:MSPG) shares rocket up more than 17% to a new 52-week high of $96 per share before closing at $94.875. Causing the move? MSPG's announcement of a 3-for-1 stock split to holders of record July 9. Each receives the share dividend scheduled for July 29. Adding fuel to the mule run is Mindspring chairman Charles Brewer talking about the consumer ISP's prospects. Yes, the 'CNBC effect' is in full swing.

    Despite the jump MSPG market capitalization lags behind its rival Earthlink (NASDAQ:ELNK) by about $50 million so the gain was probably long overdue anyway in our opinion. Most of the buying was small lots, indicating retail investors who may be under the false assumption that more shares = more value or bang for the buck. Said another way: 1 divided by 3 = 1, unless those smaller pieces can grow.