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ISDEX Off 13% In a Week: Buying Time Or Crying Time?

Written By

Jul 29, 1998

Wall Street knows all there is to know about bovine happenings. Bulls and
bovines are just two sides to the same burger, mad cows notwithstanding.
Hold the catsup.

Of course what some call a “correction” (a market downturn) others call a
buying opportunity. That means that the hype-heavy, flying-on-fumes
mentality that caused the sector to get ahead of itself may be waning or
gone. In April, for example, when ISDEX hit an all-time high, more than 100
million shares of these combined 50 firms traded hands in a single day.
Either that’s a lot of news causing moves or that’s ozone-depletion at its
very worst.

July 21 ISDEX combine shares hit north of 100 million shares traded also.
This was the day before the haircut hit, following a near-record high of
173. Then Fed chairman Alan Greenspan said something about froth again in
stocks and suddenly the glass is half full, not half empty. See for yourself:

ISDEX (		28-Jul-98	% change	Point change	% change
The Internet Stock Index		close	from	from	from
where Wall Street meets the Web			21-Jul-98	21-Jul-98	31-Dec-97
seen by more than 350,000 people globally
ISDEX Geometric Avg.		146.84	-12.7%	-21.37	47.0%
ISDEX Price Wtd.		1,628.94	-15.1%	-290.06	76.4%
NASDAQ		1,896.53	-4.2%	-82.61	20.8%
DJIA		8,934.78	-2.8%	-255.41	13.0%

CONTENT
CNET	CNWK	$56.38	-9%	-$5.75	91%
Mecklermedia	MECK	$23.38	3%	$0.75	-6%
NewsEdge	NEWZ	$9.13	-1%	-$0.13	-32%
Sportsline USA	SPLN	$26.94	-26%	-$9.63	151%
WavePhore	WAVO	$11.69	-15%	-$2.00	25%
TOTAL		$127.50		-16.75
WEIGHTED AVERAGE		$25.50	-12%	-3.35	45%

ACCESS/SERVICES
Concentric	CNCX	$26.25	-26%	-$9.13	196%
Earthlink Network	ELNK	$38.81	-5%	-$2.06	201%
Metricom	MCOM	$7.69	-19%	-$1.75	-20%
Mindspring	MSPG	$46.00	9%	$3.79	310%
PSINet	PSIX	$19.38	48%	$6.31	278%
TOTAL		138.13		-2.83
WEIGHTED AVERAGE		27.63	-2%	-0.57	190%

COMMERCE RETAILERS
Amazon.Com	AMZN	$118.94	-10%	-$13.13	295%
CDnow	CDNW	$16.38	-28%	-$6.38	2%
E*TRADE	EGRP	$27.13	-15%	-$4.88	18%
Egghead.com	EGGS	$18.56	-16%	-$3.44	186%
N2K	NTKI	$15.00	-26%	-$5.38	3%
Onsale	ONSL	$26.63	-2%	-$0.50	48%
TOTAL		222.63		-33.69
WEIGHTED AVERAGE		37.10	-13%	-5.61	106%


COMMERCE ENABLERS
CheckFree	CKFR	$24.75	-9%	-$2.31	-8%
CKS Group	CKSG	$19.13	-12%	-$2.50	35%
CMG Info	CMGI	$70.63	-18%	-$15.25	367%
CyberCash	CYCH	$13.00	-10%	-$1.50	2%
Doubleclick	DCLK	$44.63	-7%	-$3.38	163%
Network Solutions	NSOL	$38.00	1%	$0.50	190%
USWeb	USWB	$20.75	-21%	-$5.63	121%
TOTAL		230.88		-30.06
WEIGHTED AVERAGE		32.98	-12%	-4.29	113%

NAVIGATION/AGGREGATORS
@Home Network	ATHM	$45.00	-7%	-$3.56	79%
America Online	AOL	$114.25	-12%	-$15.31	152%
Excite	XCIT	$41.00	-16%	-$7.75	173%
Infoseek	SEEK	$25.38	-21%	-$6.63	136%
Intuit	INTU	$53.06	-20%	-$13.44	29%
Lycos	LCOS	$60.25	-18%	-$12.88	46%
Yahoo!	YHOO	$183.25	-3%	-$5.75	165%
TOTAL		522.19		-65.31
WEIGHTED AVERAGE		74.60	-11%	-9.33	111%

SOFTWARE
Broadvision	BVSN	$22.00	-18%	-$4.75	238%
Netscape	NSCP	$30.00	-11%	-$3.69	23%
Open Market	OMKT	$15.63	-13%	-$2.38	62%
Open Text	OTEXF	$15.38	-13%	-$2.38	15%
RealNetworks	RNWK	$30.13	-33%	-$14.88	117%
Spyglass	SPYG	$11.75	-1%	-$0.13	138%
Versant Object Technologies	VSNT	$3.88	-28%	-$1.50	-72%
TOTAL		128.75		-29.69
WEIGHTED AVERAGE		18.39	-19%	-4.24	49%

SECURITY
Axent	AXNT	$24.19	-22%	-$6.81	40%
CheckPoint Software	CHKPF	$23.25	-11%	-$3.00	-43%
Cyberguard	CYBG	$9.00	14%	$1.13	60%
Cylink	CYLK	$13.06	14%	$1.56	34%
Network Associates	NETA	$48.88	-12%	-$6.88	85%
Secure Computing	SCUR	$12.69	34%	$3.25	7%
Security Dynamics	SDTI	$14.63	-5%	-$0.81	-59%
Security First Net Bank	SFNB	$21.63	-18%	-$4.75	198%
Verisign	VRSN	$35.63	-13%	-$5.13	154%
TOTAL		202.94		-21.44
WEIGHTED AVERAGE		22.55	-10%	-2.38	20%

IP COMMUNICATIONS
IDT Corp	IDTC	$26.25	-8%	-$2.19	30%
VocalTec	VOCLF	$11.75	-11%	-$1.50	-43%
TOTAL		38.00		-3.69
WEIGHTED AVERAGE		19.00	-9%	-1.84	-7%

HIGH-SPEED SOLUTIONS
Broadband Technologies	BBTK	$4.31	-13%	-$0.63	5%
PairGain	PAIR	$13.63	-10%	-$1.56	-30%
TOTAL		17.94		-2.19
WEIGHTED AVERAGE		8.97	-11%	-1.09	-24%

OVERALL TOTAL		3,524.59	-11%	-444.01	76%
SIMPLE AVERAGE		51.83	-11%	-6.53	76%
) 1998 Mecklermedia, Internet.com

98.07.27: Amazon.com (NASDAQ:AMZN) gets a “buy” rating from CS First
Boston. Amazon may be on a holding pattern until music and video sales
start coming in. It hasn’t begun until the Olestra lady sings.

98.07.24: Infoseek (NASDAQ:SEEK) revenue doubles to more than $17.1
million for second quarter. Loss narrower than expected, $0.04 vs. expected
$0.07 loss per share. Web site traffic declines from 22.1 million to 20.3
million June vs. March quarters because as Infoseek buys 15% of its traffic
from Netscape vs. 35% before. SEEK drops to $29, off more than 7%.

Much talk about PSINet (NASDAQ:PSIX) and Mindspring (NASDAQ:MSPG) being
takeover targets. For the past four years we’ve believed larger telcos just
cannot act fast enough, nor have the skill sets, to be in the Internet
business on a consumer level.

98.07.24: CNET (NASDAQ:CNWK) jumps 12% to $71.625 per share on
expectations of revenue growth following its 2Q results. The tech-Internet
firm posts. Some of the gain may have been on its $0.02 EPS. Those who
delve deeper know that the earnings came from a $4.5 million gain from a
partial sale of CNET’s stake in Vignette. Without that, see net?

ISDEX Off 13% In a Week: Buying Time Or Crying Time?

Steve Harmon

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