Manufacturing numbers spooked the market as investors think the Fed may step up and tighten the money supply. To get a sense of what the fear provoked I took a slice of the last month of ISDEX. Result: it’s down 11.8% or just about as much as the NASDAQ has ran this year.
By now the IPO mania looks a little tamer where the word “mania” doesn’t describe it. Myopia perhaps.
Said it before but will keep saying it that the summer looks choppy to me and I expect it to be that way until late August/September when year-end numbers start driving the group.
Let’s see the bears, bulls:
ISDEX ® | 01-Jun-99 | % change | 04-May-99 | |
The Internet Stock Index | close | from | close | |
www.isdex.com | 04-May-99 | |||
ISDEX | 483.82 | -11.8% | 548.74 | |
NASDAQ | 2,412.03 | -2.9% | 2,485.12 | |
DJIA | 10,596.26 | -2.7% | 10,886.11 | |
Axent | AXNT | $ 12.31 | 36% | $ 9.06 |
Broadcom | BRCM | $ 93.06 | 18% | $ 79.00 |
CheckPoint Software | CHKPF | $ 44.19 | 17% | $ 37.69 |
Network Associates | NETA | $ 14.56 | 16% | $ 12.56 |
USWeb | USWB | $ 26.13 | 15% | $ 22.63 |
Verisign | VRSN | $ 56.00 | 11% | $ 50.56 |
Exodus | EXDS | $ 76.63 | 7% | $ 71.63 |
Prodigy | PRGY | $ 24.06 | 2% | $ 23.50 |
CDnow | CDNW | $ 18.75 | 2% | $ 18.44 |
VocalTec | VOCLF | $ 10.69 | -1% | $ 10.75 |
Lycos | LCOS | $ 92.75 | -1% | $ 94.00 |
Cisco | CSCO | $ 107.06 | -1% | $ 108.63 |
Excite | XCIT | $ 133.00 | -4% | $ 138.19 |
GeoCities | GCTY | $ 100.13 | -5% | $ 105.50 |
Broadvision | BVSN | $ 51.88 | -6% | $ 55.00 |
PSINet | PSIX | $ 43.50 | -7% | $ 46.56 |
eBay | EBAY | $ 166.50 | -8% | $ 181.25 |
Open Market | OMKT | $ 11.75 | -9% | $ 12.88 |
Security Dynamics | SDTI | $ 18.69 | -10% | $ 20.72 |
Inktomi | INKT | $ 96.75 | -10% | $ 108.00 |
Broadcast.com | BCST | $ 103.50 | -11% | $ 116.00 |
America Online | AOL | $ 113.13 | -11% | $ 127.13 |
Infoseek | SEEK | $ 39.56 | -12% | $ 44.94 |
Yahoo! | YHOO | $ 138.19 | -13% | $ 159.25 |
@Home Network | ATHM | $ 117.56 | -13% | $ 135.69 |
Sportsline USA | SPLN | $ 32.88 | -13% | $ 38.00 |
CNET | CNET | $ 50.13 | -14% | $ 58.00 |
CyberCash | CYCH | $ 13.25 | -15% | $ 15.50 |
Network Solutions | NSOL | $ 59.25 | -15% | $ 69.50 |
Security First Technologies | SONE | $ 40.38 | -15% | $ 47.50 |
Egghead.com | EGGS | $ 11.00 | -19% | $ 13.50 |
CMG Info | CMGI | $ 96.25 | -20% | $ 119.75 |
Mindspring | MSPG | $ 70.50 | -20% | $ 88.00 |
Concentric | CNCX | $ 32.31 | -20% | $ 40.63 |
Earthlink Network | ELNK | $ 50.72 | -21% | $ 64.00 |
Verio | VRIO | $ 50.00 | -22% | $ 64.00 |
Beyond.com | BYND | $ 19.50 | -22% | $ 25.06 |
Infospace.com | INSP | $ 43.88 | -23% | $ 57.00 |
Cyberian Outpost | COOL | $ 10.75 | -23% | $ 14.00 |
E*TRADE | EGRP | $ 39.31 | -24% | $ 51.50 |
Doubleclick | DCLK | $ 91.94 | -24% | $ 120.94 |
Go2Net | GNET | $ 98.44 | -25% | $ 130.75 |
Amazon.Com | AMZN | $ 105.81 | -26% | $ 143.00 |
Onsale | ONSL | $ 18.25 | -30% | $ 26.00 |
Xoom.com | XMCM | $ 47.00 | -30% | $ 67.31 |
Preview Travel | PTVL | $ 16.63 | -31% | $ 24.25 |
iVillage | IVIL | $ 45.25 | -32% | $ 66.88 |
RealNetworks | RNWK | $ 65.38 | -35% | $ 100.78 |
24/7 Media | TFSM | $ 26.50 | -37% | $ 42.00 |
ISS Group | ISSX | $ 26.63 | -47% | $ 50.50 |
News behind the moves:
for Web-based bank Telebanc. Investors react unfavorably, driving down EGRP
11.66% to $39 5/16 per share. Also hurting EGRP is Merrill Lynch’s new
Internet effort. I see Schwab in front with Merrill perhaps catching up in
24 months. It should have just acquired E*TRADE. Because my thinking is
that Merrill may waste time trying to figure out the Net.
per share on the news that 700 Web sites will use its ActiveShopper
shopping engine.
3/16, goes as high as $30 and closes at $26 1/16, up 74%. This IPO looks
like a more “traditional” Internet offer, less speculative runup the first
day but still a healthy run, especially vs. the weaker performing IPOs
today: Edgar-Online, Ziplink, Juno. Only DLJDirect joins StarMedia above
the noise of offerings.
share as an Internet mutual fund reportedly buys into the software
streaming firm. I would like to see RealNetworks consider some strategies
to becoming a service firm (as in a multimedia network), perhaps divesting
all or part of its software side or aligning its software side
strategically with a larger concern.
Why? Microsoft keeps pounding the
software angle but it’s much harder to win against a service. That’s why
AOL and Yahoo have beat Microsoft so far, they are “services” and not
“software.”
share as the Internet security software firm announces two new products in
as many days. One addresses the virtual private network space while the
other the public key infrastructure space.
I’ve been waiting for a loooong time for CHKP to break out and glad to see
my faith. This is one I’ve waited for for more than two years to find some
running room.
Security software in general has been a dog sector but of all of them I see
CheckPoint and Security Dynamics (NASDAQ:SDTI) as having the most
potential. Network Associates has some also if it can get past shareholder
lawsuits.
parent company, which announces it holds a 10.3% stake in CMGI. Interesting
if you recall January 6 in my outlook report of hot stocks to watch for ’99
that I mentioned any portfolio manager that didn’t have CMGI in its
portfolio should retire. Fidelity apparently listened.
The question now is: Is CMGI fully valued? I can see the way clear to CMGI
being valued at double its current level. To me this is not a earnings
story it’s a holding company story. With CMGI you get a basket of Internet
firms in one stock.
and combine it with CNET’s Snap (NASDAQ:CNET) into a new firm called NBCi,
a new Internet company. It will include NBC.com, NBC’s station affiliate
Web effort Interactive Neighborhood, multimedia site Videoseeker.com, and a
10% of soon-to-be beefed up CNBC.com. Pro forma, assuming debt conversion
by NBC into equity, who owns what: NBC 53%, Xoom.com 34%, CNET and Snap.com
13%. More and more I think these TV-Web deals could accelerate.
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