Wireless Facilities Leads Nets Higher
In the ISDEX in July, there was Wireless Facilities
WFII led internet.com's Internet Stock Index, the ISDEX, with a 51% gain in July, far outpacing the rest of the field. The runner up was Liberate Technologies
As we mentioned three weeks ago, WFII at a price-to-earnings ratio of 18 seemed substantially undervalued compared to other technology stocks. The stock is up 57% since then, closing yesterday at $9.39 a share. It still looks cheaper than the average tech stock, but two words of caution are in order. First, the company broke out of a large symmetrical triangle at $7 on Monday (see chart below), which gives the stock upside potential to $10 - it's getting close to that level, and may need to consolidate before further gains. The $7 level should now be support. And second, the company reports earnings next Wednesday, so investors will get a closer look at the company's finances then.
On the downside, Art Technology
, and then there was everyone else.
, which scored a 21% gain last month on optimism that its cable TV software is gaining acceptance. All told, only six ISDEX stocks (out of 50) scored double-digit gains during July, a month in which the ISDEX lost 17%. The other four were: GoTo.com
, up 18%; EarthLink
, up 12%; and Hotel Reservations Network
and Broadcom
, both up 11%.
broadband network and takeover speculation; ROOM is benefiting from strong growth and strength in the online travel sector; and Broadcom is gaining from a rebound in semiconductors. And GoTo is nearing profitability and showing strong growth.
lost 53% in July on an earnings warning; Excite@Home
lost 46% on a disappointing outlook; and i2
lost 44% after breaking down on concern about layoffs and slowing sales. ITWO broke down out of a head-and-shoulders top in June that projected minimum downside to $12 (see chart below).