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Chicagoland: Will Summer Internet World Raise Stocks?

Leave it to the buzz emanating from a trade show to raise the profile of Internet stocks. As Summer Internet World enters its week long run here in Chicago, we'll bring you some of the notable companies on display and how they may reshape the Webscape.

The past week with ISDEX, we've seen some long-ignored stocks run for the roses. Egghead.com (NASDAQ:EGGS) continued its climb after the firm revealed just how well its auction site was doing.

As a longtime believer in EGGS, it was good to see the steam let loose. We aren't believers beyond $20 per share until more quarterly results are known, however.

E*TRADE (NASDAQ:EGRP), which looked like a passe play in the commodity-driven trading space, cut a $400 million deal with Softbank. Suddenly it's a new direction as financial info service/trading. We think a large bank ought to take out EGRP now before this one goes to the moon. The future of banking is at stake and E*TRADE not only has a front row seat, the action involves it in our view.

Let's look at the numbers, hot and not, and those simply hot and bothered:

ISDEX July 7 - 14

New Page 1

ISDEX .

14-Jul-98

% change

The Internet Stock Index

close

from

07-Jul-98

ISDEX Geometric Average

168.17

1.3%

ISDEX Price Wtd. Composite

1,891.80

-1.2%

NASDAQ

1,968.41

3.2%

DJIA

9,245.54

1.8%

Egghead.com

EGGS

$23.42

51%

E*TRADE

EGRP

$30.56

34%

WavePhore

WAVO

$14.44

33%

Versant Object Technologies

VSNT

$5.50

29%

Metricom

MCOM

$8.81

22%

Open Text

OTEXF

$17.00

21%

CheckPoint Software

CHKPF

$33.00

14%

Broadband Technologies

BBTK

$4.88

11%

America Online

AOL

$120.50

11%

Mindspring

MSPG

$100.00

7%

Security First Net Bank

SFNB

$18.06

6%

RealNetworks

RNWK

$37.38

5%

CMG Info

CMGI

$72.00

5%

Intuit

INTU

$63.63

5%

Cylink

CYLK

$12.19

4%

Earthlink Network

ELNK

$74.13

4%

Network Associates

NETA

$50.63

4%

Open Market

OMKT

$18.75

4%

Axent

AXNT

$30.00

3%

CheckFree

CKFR

$29.69

2%

Verisign

VRSN

$42.75

1%

Broadvision

BVSN

$25.50

0%

Security Dynamics

SDTI

$17.75

-1%

CyberCash

CYCH

$12.81

-1%

@Home Network

ATHM

$47.38

-2%

Yahoo!

YHOO

$186.50

-2%

Secure Computing

SCUR

$10.44

-3%

Spyglass

SPYG

$11.63

-3%

CKS Group

CKSG

$21.69

-4%

USWeb

USWB

$25.13

-5%

PairGain

PAIR

$15.38

-6%

Mecklermedia

MECK

$24.50

-6%

VocalTec

VOCLF

$12.13

-6%

Amazon.Com

AMZN

$115.00

-6%

PSINet

PSIX

$13.88

-7%

Netscape

NSCP

$33.50

-7%

Concentric

CNCX

$34.50

-7%

N2K

NTKI

$20.69

-7%

Infoseek

SEEK

$32.38

-8%

Excite

XCIT

$88.19

-8%

NewsEdge

NEWZ

$12.25

-8%

Network Solutions

NSOL

$40.50

-9%

Cyberguard

CYBG

$9.00

-10%

Onsale

ONSL

$21.94

-12%

IDT Corp

IDTC

$23.75

-12%

Sportsline USA

SPLN

$31.25

-13%

Doubleclick

DCLK

$52.81

-15%

Lycos

LCOS

$71.63

-16%

CDnow

CDNW

$19.50

-16%

CNET

CNWK

$52.94

-20%

TOTAL

1,891.80

-1%

SIMPLE AVERAGE

37.84

-1%

(c) Mecklermedia, Internet.com. www.isdex.com

Notably, some of the more popular Web stocks and brands softened as investors look for the next big thing. CNET (NASDAQ:CNWK) leads the top losers with a 20% drop since July 7. CNET had a phenomenal rise after announcing its deal with NBC to sell Snap!, and is up more than 79% year to date, however.

Netscape (NASDAQ:NSCP) falls 7% to $33.50 after the glitz and glamor of it's possible media deal drove up its shares. When no big deals were announced, Wall Street walked.

NewsEdge (NASDAQ:NEWZ) got a tout from analysts and media alike, causing a big blip up July 14. NEWZ popped 36% to $12.25 per share. Its model of selling news feeds to corporations and customizing content generates more than $70 million annually, more revenue than PointCast, My Yahoo or many other sites .

Our concern is that a subscriber model in the era of "everything free Internet" may spell long-term disaster. Eyeballs win eventually. Leverage matters.

If the product can be ultra clean and customized to the umpteenth degree, then a pay model works. Corporations don't have time for surfing. So NewsEdge must stay on the cutting edge rather than bleeding edge.

Thursday look for highlights from the floor at Summer Internet World and our recap of our capital connections conference.