Investors bought the rumor and sold the news, sending shares of Cisco
Systems plunging 4-1/4 to 58-1/2, following the
networker’s better-than-expected quarterly earnings. After reporting $0.14
per share after the bell yesterday, the stock fell victim to a bout of
profit taking.
Cisco’s woes dragged tech stocks lower for the third straight day this
week, and sent the ISDEX tumbling 6.01%. The NYSE fell in sympathy with
techs, dipping 168.97 to 10,367.78, while the Nasdaq neared key support
levels in its search for a bottom, shedding 199.94 to 3,385.07.
High flying Net portals took much of today’s damage, with InfoSpace
erasing 7-31/32 to 45-13/16. Go2Net
headed deeper into the red, down 8-15/16 to 36, while shares
of Yahoo! quietly bucked the trend, adding
1-7/16 to 118-7/8.
B2B companies were blindsided across the board. Shares of
VerticalNet edged lower by 4-5/8 to 39-7/16.
Commerce One sank 1-13/16 to 45-15/16, while
PurchasePro.com inched closer to its 52-week
low, down 3 to 24-1/4.
Shares of K-tel International crumbled 1-7/16 to
2-1/4, or 39%, on reports that the music e-tailer is set to receive the
boot from the Nasdaq National Market after failing to meet minimum listing
requirements.
It’s been some wild ride for K-tel International. After posting a double
and triple bagger just over two years ago, the company has since fallen out
of favor with day-traders who once clamored to the stock’s narrow and
subsequently volatile float. Executives privy to the looming delisting have
been scrambling to dump insider shares ahead of the news.
Buy the Rumor, Sell the News
