Shares of online broker DLJdirect rocketed on their second day Thursday as the blue chips were being hit hard by investors taking profits from strong gains earlier in the week.
Just before mid-day, internet.com’s Internet Stock Index was off 5.58, or 1.10 percent, to 499.62, the Dow Jones industrial average was off 146.55 to 10,555.61 and the Nasdaq Composite was up 3.41 to 2,430.59.
DLJdirect (DIR) had rocketed 11 to 41 on the company’s second full day of trading. On Wednesday, DLJdirect chief Blake Darcy said the company planned to use the IPO proceeds to make an acquisition in the second half of this year.
He told Reuters potential targets include other online brokerage firms, content companies or possibly a technology company.
DLJdirect sold 16 million shares at $20 each Tuesday, raising $320 million.
Prodigy Communications Corp. (PRGY) shares were up 1-3/8 to 24-3/8. The company Thursday agreed to buy the U.S. consumer Internet business of U.K. phone company Cable & Wireless PLC. Prodigy will pay between $50 million and $75 million for the subscribers, depending on how many remain with its service after the deal closes.
Security First Technologies Corp. (SONE) jumped 3-3/8 to 35-1/2. The company announced Thursday that financial software maker Intuit Inc. had completed its $50 million investment. Security First provides Internet-based applications for the financial services industry.
PSINet Inc. (PSIX) shares were down 1-1/2 to 42-7/8. The company, which provides Internet access to businesses, plans to set aside up to $300 million in stock to fund acquisitions.
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