ISDEX: Top & Not Internet Stocks Show Strong Week

ISDEX is up more in the past week alone than the Dow has done all year. And the
50-strong Internet Stock Index is almost on par in a week with what NASDAQ
has done all year. Hoochie mama.

Leader of the pack attack since March 30 is RealNetworks, (NASDAQ:RNWKnews)
which ran on the Yahoo-Broadcast.com deal. The logic says if Broadcast.com
went who’s next? Real has two attractive pieces for a possible buyer:
leading streaming software servers/clients with tens of millions of
downloads; and 2) one of the largest audio-video sites on the Web.

Note
to Steve Case, here’s a way to save the investment banker deal fee: I
estimate Real’s real value could be close to $7 billion. Here’s how: the
software side at $3 billion and the portal side at $4 billion.

But you
know who could be a better buyer, or a hungrier one? Intel. In one swoop it
enters the chip-sapping multimedia Internet market and has sexy, cool
content. Probably not a buyer though, too conservative of a player.

Let’s
see hot and not stocks:
































































































































































































































































































































































ISDEX ®

 

06-Apr-99

% change

The Internet Stock Index

 

close

from

www.isdex.com

 

 

30-Mar-99

 

 

 

 

ISDEX

 

617.49

13.6%

NASDAQ

 

2,563.17

3.3%

DJIA

 

9,963.49

0.5%

 

 

 

 

RealNetworks

RNWK

$195.44

58%

Beyond.com

BYND

$31.50

42%

Broadcast.com

BCST

$156.38

38%

Concentric

CNCX

$97.00

31%

E*TRADE

EGRP

$76.00

31%

Doubleclick

DCLK

$121.00

31%

Infospace.com

INSP

$106.25

30%

GeoCities

GCTY

$139.50

26%

CMG Info

CMGI

$229.63

25%

Yahoo!

YHOO

$214.88

25%

Lycos

LCOS

$108.81

24%

Security First Technologies

SONE

$89.00

23%

Earthlink Network

ELNK

$72.56

21%

Verisign

VRSN

$161.13

20%

Mindspring

MSPG

$105.38

20%

Preview Travel

PTVL

$20.94

18%

CNET

CNET

$110.63

17%

Broadcom

BRCM

$70.88

17%

America Online

AOL

$167.50

16%

Exodus

EXDS

$160.00

14%

Amazon.Com

AMZN

$182.88

11%

eBay

EBAY

$152.00

11%

Infoseek

SEEK

$84.06

10%

Sportsline USA

SPLN

$51.38

9%

iVillage

IVIL

$101.63

9%

Network Solutions

NSOL

$115.50

9%

Excite

XCIT

$149.94

8%

Xoom.com

XMCM

$75.56

8%

Open Market

OMKT

$14.00

7%

@Home Network

ATHM

$162.13

6%

Cisco

CSCO

$115.25

5%

PSINet

PSIX

$45.13

3%

Go2Net

GNET

$134.44

2%

24/7 Media

TFSM

$48.31

2%

Prodigy

PRGY

$39.25

1%

Inktomi

INKT

$89.63

0%

Onsale

ONSL

$33.38

0%

CyberCash

CYCH

$14.63

-2%

Cyberian Outpost

COOL

$19.06

-3%

Broadvision

BVSN

$61.75

-3%

VocalTec

VOCLF

$10.69

-3%

CDnow

CDNW

$16.06

-4%

USWeb

USWB

$40.13

-5%

Egghead.com

EGGS

$17.25

-5%

Security Dynamics

SDTI

$16.88

-6%

ISS Group

ISSX

$69.75

-6%

Verio

VRIO

$42.00

-9%

Network Associates

NETA

$21.94

-25%

CheckPoint Software

CHKPF

$30.13

-29%

Axent

AXNT

$8.75

-73%

News behind the moves:

  • 99.03.30 – AXENT (NASDAQ:AXNTnews) shares lose 25% to $24.0625 per share
    as the security firm announces a $50 million stock acquisition of UK-based
    PassGo, which makes products that control access to Webs. While AXNT gets a
    downgrade from several research analysts based on the in-process research
    and development charge of up to 30% of the purchase price. But I believe
    the buy helps position AXENT in two ways: in Europe and in offering more
    security solutions. Short-term earnings hit for longer term possible gain.
    Who says logic has anything to do with stock movement?

  • 99.03.30 – Beyond.com (NASDAQ:BYNDnews) completes the acquisition of
    software ESD effort Buydirect.com for $123 million stock. BYND finally
    starts to move on the deal which I think could add $15 million to $20
    million to Beyond’s revenue if not this year then 2000.

  • 99.04.01 – ISS Group (NASDAQ:ISSXnews) a leading Internet security
    software maker, announces a 2-for-1 stock split. The firm came under fire
    from a Barron’s article March 28 that played up growing competition from
    larger rivals. Security is getting more competitive as companies seek
    solution providers in all areas of security and want more services to
    support them I believe.

  • 99.04.01 – Looksmart, a privately-held Internet guide, raises $60
    million from a series of venture and capital sources. At the same time (and
    probably due in part to the success of iVillage’s IPO) Looksmart says it’s
    now focused on being a “women’s portal.” Part of that comes from its 61%
    female users already on the service. Post-money valuation was about $400
    million. I expect Looksmart to be looking smarter if it gets an IPO off soon.

  • 99.04.05 – Yahoo (NASDAQ:YHOOnews) shares gain 22% to $219.125 per share
    as the portal network inks a deal with startup Online Anywhere to bring
    Yahoo Everywhere to non-Web platforms such as PDAs. Yahoo’s move signals
    the built-in leverage it has with its reach in a multiplier effect with
    acquisitions GeoCities and Broadcast.com. It also shows the cross-platform
    ability some Web brands have to move into information and communications
    mediums in general. I recall in January when many observers thought a media
    firm would acquire Yahoo that I posited that Yahoo may acquire a media firm.

    Accolades:

    "Fresh and provocative" -CBS
    Marketwatch, who named
    Steve Harmon one of the top Internet stock analysts and only independent
    one honored

    "I am a huge fan of Steve Harmon’s analysis"
    -Kleiner Perkins’ John Doerr


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