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Hot & Not: ISDEX Highlights Best Of Third Quarter

What do you get when you combine irrational exuburance with thumb-twitching Web-based trading cowboys? Third quarter for Internet stocks, more wild than Bill Gates at a Spice Girls concert.

As the hammer slammed, modems whirred, the last trades of a volatile third quarter for stocks in general closed September 30, and left ISDEX down 33% as an average, but off a more mild 4%, counting the closing prices for September 30 vs. June 30.

Third quarter also saw the tech-laden NASDAQ fall 11% while the Dow dropped 12%.

Amid the hustle and bustle, pops and drops however, a handful of Internet stocks handily beat the market's blue mood and posted triple-digit percent gains.

The best performing Internet stock for third quarter (drum roll please) is Amazon.com (NASDAQ:AMZN), up an amazing 124% since June 30.

Runner-up also at 124%: Broadcast.com (NASDAQ:BCST), which we tally from its IPO price of $18 in July.

AOL (NYSE:AOL), Inktomi (NASDAQ:INKT), and Yahoo! (NASDAQ:YHOO), round out the top five honors for third quarter. Check the abacus-tweaking stats here:

Third Quarter - Who's Hot, Who's Not In Internet Stocks:

 

ISDEX .

30-Sep-98

% change

Point change

% change

The Internet Stock Index

close

from

from

from

www.isdex.com

30-Jun-98

30-Jun-98

31-Dec-97

or from IPO**

or from IPO**

or from IPO*

ISDEX Geometric Average

106.43

-32.8%

-51.91

6.6%

ISDEX Price Wtd. Composite

1,504.31

-3.8%

-59.04

68.4%

NASDAQ

1,693.84

-10.6%

-200.90

7.9%

DJIA

7,842.62

-12.4%

-1,109.40

-0.8%

Broadcast.com**

BCST

$40.38

124%

$22.38

124%

Amazon.Com

AMZN

$111.63

124%

$61.75

271%

America Online

AOL

$111.63

112%

$59.06

147%

Inktomi*

INKT

$75.25

89%

$35.50

318%

Yahoo!

YHOO

$129.50

64%

$50.75

274%

GeoCities**

GCTY

$23.25

37%

$6.25

37%

CKS Group

CKSG

$17.69

22%

$3.19

25%

Mindspring

MSPG

$41.50

21%

$7.21

270%

Spyglass

SPYG

$12.75

11%

$1.31

158%

Earthlink Network

ELNK

$41.25

7%

$2.88

220%

PSINet

PSIX

$13.94

7%

$0.94

172%

@Home Network

ATHM

$47.88

1%

$0.56

91%

Security First Net Bank

SFNB

$14.88

0%

-$0.06

105%

Verio*

VRIO

$24.75

-1%

-$0.13

8%

Secure Computing

SCUR

$9.81

-1%

-$0.06

-17%

Broadcom*

BRCM

$71.00

-4%

-$2.63

196%

RealNetworks

RNWK

$34.69

-7%

-$2.63

150%

Network Solutions

NSOL

$41.63

-8%

-$3.38

217%

Lycos

LCOS

$33.81

-10%

-$3.88

63%

Open Text

OTEXF

$13.44

-10%

-$1.56

0%

Mecklermedia

MECK

$19.63

-12%

-$2.75

-21%

Excite

XCIT

$40.81

-13%

-$5.94

172%

Egghead.com

EGGS

$7.25

-14%

-$1.19

12%

ISS Group*

ISSX

$31.88

-15%

-$5.75

45%

E*TRADE

EGRP

$18.69

-19%

-$4.25

-19%

Netscape

NSCP

$21.88

-19%

-$5.19

-10%

CyberCash

CYCH

$9.44

-23%

-$2.75

-26%

24/7 Media**

TFSM

$10.75

-23%

-$3.25

-23%

IDT Corp

IDTC

$23.00

-23%

-$7.06

14%

CMG Info

CMGI

$53.25

-25%

-$17.50

252%

VocalTec

VOCLF

$8.25

-26%

-$2.88

-60%

Network Associates

NETA

$35.50

-26%

-$12.38

-33%

Verisign*

VRSN

$27.25

-27%

-$10.13

95%

Concentric

CNCX

$21.00

-30%

-$9.13

137%

Infoseek

SEEK

$24.63

-31%

-$11.25

129%

Onsale

ONSL

$16.69

-33%

-$8.06

-7%

CNET

CNWK

$45.75

-33%

-$22.50

202%

Security Dynamics

SDTI

$11.94

-35%

-$6.56

-67%

Axent

AXNT

$18.63

-39%

-$12.00

8%

CheckPoint Software

CHKPF

$19.88

-39%

-$12.88

-51%

Open Market

OMKT

$11.25

-40%

-$7.63

17%

USWeb

USWB

$13.06

-45%

-$10.63

39%

WavePhore

WAVO

$6.38

-45%

-$5.19

-32%

Exodus*

EXDS

$24.38

-46%

-$20.38

63%

Doubleclick

DCLK

$23.88

-52%

-$25.81

40%

Sportsline USA

SPLN

$17.44

-52%

-$19.13

62%

CDnow

CDNW

$9.00

-55%

-$11.13

-44%

Broadvision

BVSN

$10.56

-56%

-$13.31

63%

Cylink

CYLK

$4.50

-63%

-$7.50

-54%

N2K

NTKI

$7.19

-63%

-$12.44

-51%

* change from IPO 1998

TOTAL

1,504.31

-4%

-59.04

68%

SIMPLE AVERAGE

30.09

-4%

-1.18

68%

**=IPO after 6/30/98; *=IPO after 12/31/97 (c) 1998 Mecklermedia (NASDAQ:MECK)

Fully 13 of the 50 ISDEX stocks came out in positive territory in the third quarter, a period in which the market met its maker in many ways.

Rollercoaster fans will appreciate the ride if they stop and consider ISDEX went from 178 to 80 in just over a month.

Some of the more notable gyrations came in 3Q, as July 21 ISDEX stood at 178.58, just 7 points off its all-time high. By September 30, ISDEX was down 40% led by irrational exuberance gone awry. ISDEX dipped to a shade above 80 on September 1, but bounced back 32% to close September 30 at 106.43.

That kind of nitroglycerine is anything but fundamental and based mostly on the emotions of the market. One day Internet stocks walk on water and the next they feel like lead shoes.

In the bigger picture, 34 of the 50 ISDEX stocks were on the rise if we look at year to date stats. Translation: more bear than bull for third quarter, but more bull then bear overall this year.

On a price-weighted basis, ISDEX was up 68% since 12/31 (or IPO for those stocks public after 12/31). ISDEX geometric average (which smooths out the weighting evenly among all the stocks) showed a 6.6% rise.

Inktomi holds first place in best percentage run in the ISDEX, with a 318% rise since its June IPO. Of Internet stocks trading the full year, Yahoo! fared best, up 274% since December 31, 1997.

Inktomi has become the cache flow machine for a bevy of services including AOL and Microsoft, both of which use its network caching software to effectively "speed" up file delivery for popular files on the Web. Its search engine/indexer also locked in several high-profile licensees including the two mentioned for caching and Yahoo!

Wired's HotBot was the first to see the value in Inktomi's search product and has used it for more than two years now. Only recently, in the past week, has Wired Digital (now spun off from its magazine sister) announced that it, too, will be a portal.

For an historical look at Wired's initial public offering plans see the almost classic ISR of May 8, 1996. For more third-quarter moves and news for each of these stocks in ISDEX please search the Archives or see InternetNews.com.

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