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RealTime IT News

Keyword: Herd Mentality Russian Economy Knocks Stocks

Russian economic turmoil may have sent the world's stock markets falling yesterday with reverberations continuing today but Internet usage in that nation (ironically whose mascot Wall Street will note is a bear) amounts to about 1 million users or well under 1% of the entire Russian population. Said another way, as goes Russia does not go the Internet as a global industry.

That didn't stop ISDEX, The Internet Stock Index, from getting caught up in investor's run for the exits August 27 as it fell 7% dragged down by the broader-market sell-a-thon which saw all the indices of note falling at near record levels.

Check our special sort of the ISDEX stocks that lost the most in percent terms from August 26 to August 27. Here's what happens when the bear's at play:

ISDEX After The Russian Rushing

Internet Ticker Close Close Percent Point Volume
Company Symbol 8/27/98 8/26/98 Change Change 8/27/98
RealNetworks RNWK $22.00 $26.88 -18% -$4.88 413,700
24/7 Media TFSM $9.25 $11.06 -16% -$1.81 252,300
CMG Info CMGI $59.69 $69.13 -14% -$9.44 1,771,800
GeoCities GCTY $27.13 $31.25 -13% -$4.13 726,800
WavePhore WAVO $6.63 $7.63 -13% -$1.00 1,098,700
Concentric CNCX $18.19 $20.88 -13% -$2.69 240,400
Excite XCIT $34.44 $39.38 -13% -$4.94 4,807,400
Sportsline USA SPLN $21.50 $24.44 -12% -$2.94 1,048,500
Onsale ONSL $20.13 $22.81 -12% -$2.69 437,800
Security First Net Bank SFNB $11.75 $13.25 -11% -$1.50 82,900
Earthlink Network ELNK $36.69 $41.13 -11% -$4.44 608,200
Mindspring MSPG $34.75 $38.94 -11% -$4.19 1,886,600
Netscape NSCP $23.94 $26.56 -10% -$2.63 5,499,400
Lycos LCOS $34.25 $38.00 -10% -$3.75 4,729,800
@Home Network ATHM $36.63 $40.63 -10% -$4.00 1,311,000
CNET CNWK $41.50 $45.88 -10% -$4.38 322,700
Broadcom BRCM $59.88 $66.00 -9% -$6.13 331,200
Infoseek SEEK $23.75 $25.94 -8% -$2.19 2,437,300
CyberCash CYCH $9.50 $10.34 -8% -$0.84 1,102,800
Egghead.com EGGS $8.00 $8.69 -8% -$0.69 1,784,000
E*TRADE EGRP $22.25 $24.13 -8% -$1.88 927,800
Verisign VRSN $27.88 $30.13 -7% -$2.25 151,000
Amazon.Com AMZN $119.00 $127.25 -6% -$8.25 2,671,200
Doubleclick DCLK $31.25 $33.38 -6% -$2.13 692,600
Yahoo! YHOO $91.06 $96.88 -6% -$5.81 4,888,700
USWeb USWB $17.00 $18.06 -6% -$1.06 596,400
Security Dynamics SDTI $11.31 $12.00 -6% -$0.69 147,500
CDnow CDNW $10.63 $11.25 -6% -$0.63 266,500
Cylink CYLK $9.56 $10.13 -6% -$0.56 82,700
Mecklermedia MECK $23.88 $25.25 -5% -$1.38 87,900
Verio VRIO $22.88 $24.13 -5% -$1.25 109,700
America Online AOL $105.00 $110.69 -5% -$5.69 6,803,800
N2K NTKI $9.63 $10.13 -5% -$0.50 558,700
Network Solutions NSOL $32.00 $33.63 -5% -$1.63 97,200
Broadcast.com BCST $51.00 $53.50 -5% -$2.50 339,100
Axent AXNT $17.88 $18.75 -5% -$0.88 436,800
Inktomi INKT $71.78 $74.88 -4% -$3.09 506,500
Network Associates NETA $38.22 $39.81 -4% -$1.59 3,393,600
VocalTec VOCLF $7.69 $8.00 -4% -$0.31 256,900
Open Text OTEXF $13.59 $14.13 -4% -$0.53 69,400
PSINet PSIX $15.44 $15.94 -3% -$0.50 2,028,100
CheckPoint Software CHKPF $21.50 $22.19 -3% -$0.69 1,319,600
Exodus EXDS $36.75 $37.88 -3% -$1.13 66,900
Open Market OMKT $10.25 $10.50 -2% -$0.25 352,800
ISS Group ISSX $37.63 $38.00 -1% -$0.38 406,500
Secure Computing SCUR $9.00 $9.00 0% $0.00 202,400
Spyglass SPYG $13.69 $13.63 0% $0.06 718,500
Broadvision BVSN $22.25 $21.75 2% $0.50 523,800
CKS Group CKSG $17.38 $16.63 5% $0.75 138,500
IDT Corp IDTC $19.00 $17.88 6% $1.13 613,900
             
ISDEX as group:            
Total/Weighted Average   1,475.91 1,588.22 -7% -112.31 60,348,300

Leading the list of decliners was RealNetworks, (NASDAQ:RNWK) with an 18% drop to $22 per share despite the fact that there is no connection between Russian President Boris Yeltsin and the functionality of RealNetworks' media player or broadcast service. At least no known link.

24/7's (NASDAQ:TFSM) tumble on the rumble landed it at $9.25 per share, off 16%. TFSM stock is down 33% from its IPO pricing August 14. Our analysis on 24/7 August 11 said its boatload of options could provide a selling point for earnings conscious investors. Fully-diluted TFSM trades at what we think may be 14x 1998 revenue estimates.

CMG (NASDAQ:CMGI) lost 14% based partly on its exposure to a basketful of investments in startups that likely may not find an IPO window this year. We think its equity in Lycos (NASDAQ:LCOS) and GeoCities (NASDAQ:GCTY) provides it with some hedge, however. And deals along the lines of spinning out these firms to already public companies provides (a la its deal with Amazon and Planet All) liquidity via another route.

On the IPO subject, we expect that an IPO window may emerge for notable firms--those with growth and more established business models late this year or early 1999.

Of the few stocks that gained August 27, CKS Group (NASDAQ:CKSG) had no news while IP communications provider IDT (NASDAQ:IDTC) did so on a upgrade by Bear Stearns to "buy."

Broadvision (NASDAQ:BVSN), meanwhile, moved up 2% to $22.25 per share on SmartMoney naming it a top three pick (we picked it back in January, see Internet Stock Report January 21, when BVSN was $6.25 per share).