RealTime IT News

Up 8%: ISDEX Gains Against Broad Market Selloff

Between the Asian flu and Zippergate it's no wonder the broad market is in a tailspin, causing the Dow to bow nearly 300 points and 200 points in a single day, ending the week off a more mild 25 points.

While the big board got slammed ISDEX gained 8% on a price-weighted basis ending last week's selloff and perhaps signaling that there's a little strength left for Internet stocks.

We expect some more market volatility in the next eight to ten weeks (heavy roller coaster action) and then a possible recovery as the holiday season approaches and e-commerce makes headlines. If you think last Christmas was e-tail heaven this Christmas could be huge. It will be commonplace for tens of millions to buy a gift over the Web.

Who could benefit from that? AOL (NYSE:AOL), Yahoo! (NASDAQ:YHOO), Amazon (NASDAQ:AMZN), Excite (NASDAQ:XCIT), Lycos (NASDAQ:LCOS), CDnow (NASDAQ:CDNW), ONSALE (NASDAQ:ONSL), Egghead.com (NASDAQ:EGGS), and Cyberian Outpost (NASDAQ:COOL), to name a few.

Before we get too far ahead of the action, let's take a look at the play-by-play from August 4 to August 11. More than 35 of the 50 stocks in ISDEX ended the period with gains, a bullish indicator in our view. Last week more stocks ended down. This signals that there's a little more leg room for the group, especially since ISDEX is well off the highs it reached in April. Check the handy table:

ISDEX - Top 10 Highs Since Inception April, 1996

date

open

high

low

close

volume

4/21/98

179.19

185.66

173.11

178.55

59,150,300

4/22/98

180.88

184.04

167.41

171.79

66,366,800

4/16/98

171.64

183.94

165.41

179.16

128,794,200

4/20/98

175.70

183.37

171.08

176.48

62,942,400

4/17/98

176.56

182.77

169.31

174.77

100,258,300

7/7/98

176.36

180.73

163.02

166.02

113,059,400

7/21/98

170.98

178.58

162.32

168.21

101,138,100

7/6/98

169.25

177.66

162.82

172.27

105,819,700

7/20/98

169.56

177.46

165.81

173.83

59,650,000

4/15/98

170.45

176.48

164.49

170.72

64,392,100

(c) 1998 Mecklermedia. Internet.com

GeoCities (NASDAQ:GCTY) broke out of the market's mad cow burger phase (or bear burgers, heavy on the salmonella) with its rocketing IPO on August 11, and it has the chance to create an opening for quality Internet IPOs. Not concepts or fish oil magnates but real revenue and reach players.

Lycos (NASDAQ:LCOS) cherry picked fastest-growing Web site (according to Media Metrix) Angelfire in a $133 million stock deal to help shore up its community position. We think the Media Metrix tally could provide a clued-in shopping list for larger players looking to acquire growth.

Here's the way the week shook up the 50 ISDEX stocks:

ISDEX (

11-Aug-98

% change

The Internet Stock Index

close

from

www.isdex.com

04-Aug-98

ISDEX Geometric Average

134.71

5.8%

ISDEX Price Wtd. Composite

1,485.50

8.0%

NASDAQ

1,792.70

0.4%

DJIA

8,462.85

-0.3%

Doubleclick

DCLK

$47.50

30%

Earthlink Network

ELNK

$41.81

22%

PSINet

PSIX

$18.50

21%

Broadvision

BVSN

$23.88

21%

CMG Info

CMGI

$79.25

19%

Lycos

LCOS

$63.56

19%

Netscape

NSCP

$29.50

18%

Broadband Technologies

BBTK

$3.56

16%

Excite

XCIT

$44.63

16%

@Home Network

ATHM

$46.44

15%

RealNetworks

RNWK

$33.13

14%

CDnow

CDNW

$14.25

14%

Amazon.Com

AMZN

$124.00

13%

CNET

CNWK

$47.38

12%

Concentric

CNCX

$23.25

12%

E*TRADE

EGRP

$28.00

11%

Network Solutions

NSOL

$36.06

10%

Sportsline USA

SPLN

$27.63

9%

Yahoo!

YHOO

$91.38

7%

Intuit

INTU

$47.25

7%

Egghead.com

EGGS

$13.44

7%

Verisign

VRSN

$32.00

6%

Mecklermedia

MECK

$24.25

6%

Open Text

OTEXF

$14.75

4%

IDT Corp

IDTC

$23.88

4%

Cylink

CYLK

$10.75

4%

CheckPoint Software

CHKPF

$22.63

3%

Mindspring

MSPG

$41.81

3%

Metricom

MCOM

$8.00

3%

PairGain

PAIR

$13.19

2%

N2K

NTKI

$14.38

2%

CKS Group

CKSG

$18.50

2%

Infoseek

SEEK

$23.63

2%

Secure Computing

SCUR

$10.75

1%

Axent

AXNT

$22.13

1%

Network Associates

NETA

$45.50

1%

Onsale

ONSL

$24.31

1%

CheckFree

CKFR

$23.75

0%

NewsEdge

NEWZ

$6.88

-1%

CyberCash

CYCH

$10.53

-1%

Spyglass

SPYG

$10.22

-2%

Cyberguard

CYBG

$7.81

-2%

Versant Object Technologies

VSNT

$3.56

-2%

Security Dynamics

SDTI

$11.38

-2%

WavePhore

WAVO

$9.69

-3%

America Online

AOL

$107.13

-3%

VocalTec

VOCLF

$9.25

-6%

Security First Net Bank

SFNB

$18.88

-7%

Open Market

OMKT

$14.25

-11%

USWeb

USWB

$17.38

-13%

TOTAL

1,485.50

8%

SIMPLE AVERAGE

29.71

8%

(c) 1998 Mecklermedia (NASDAQ:MECK), The Internet Media Company - Internet.com

  • For the past week's market moves and news please see Internet Stock Report's Market Close archives.

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