Russian economic turmoil may have sent the world’s stock markets falling
yesterday with reverberations continuing today but Internet usage in that
nation (ironically whose mascot Wall Street will note is a bear) amounts to
about 1 million users or well under 1% of the entire Russian population.
Said another way, as goes Russia does not go the Internet as a global
industry.
That didn’t stop ISDEX, The Internet Stock Index, from getting caught up in
investor’s run for the exits August 27 as it fell 7% dragged down by the
broader-market sell-a-thon which saw all the indices of note falling at
near record levels.
Check our special sort of the ISDEX stocks that lost the most in percent
terms from August 26 to August 27. Here’s what happens when the bear’s at
play:
ISDEX After The Russian Rushing
Internet | Ticker | Close | Close | Percent | Point | Volume |
Company | Symbol | 8/27/98 | 8/26/98 | Change | Change | 8/27/98 |
RealNetworks | RNWK | $22.00 | $26.88 | -18% | -$4.88 | 413,700 |
24/7 Media | TFSM | $9.25 | $11.06 | -16% | -$1.81 | 252,300 |
CMG Info | CMGI | $59.69 | $69.13 | -14% | -$9.44 | 1,771,800 |
GeoCities | GCTY | $27.13 | $31.25 | -13% | -$4.13 | 726,800 |
WavePhore | WAVO | $6.63 | $7.63 | -13% | -$1.00 | 1,098,700 |
Concentric | CNCX | $18.19 | $20.88 | -13% | -$2.69 | 240,400 |
Excite | XCIT | $34.44 | $39.38 | -13% | -$4.94 | 4,807,400 |
Sportsline USA | SPLN | $21.50 | $24.44 | -12% | -$2.94 | 1,048,500 |
Onsale | ONSL | $20.13 | $22.81 | -12% | -$2.69 | 437,800 |
Security First Net Bank | SFNB | $11.75 | $13.25 | -11% | -$1.50 | 82,900 |
Earthlink Network | ELNK | $36.69 | $41.13 | -11% | -$4.44 | 608,200 |
Mindspring | MSPG | $34.75 | $38.94 | -11% | -$4.19 | 1,886,600 |
Netscape | NSCP | $23.94 | $26.56 | -10% | -$2.63 | 5,499,400 |
Lycos | LCOS | $34.25 | $38.00 | -10% | -$3.75 | 4,729,800 |
@Home Network | ATHM | $36.63 | $40.63 | -10% | -$4.00 | 1,311,000 |
CNET | CNWK | $41.50 | $45.88 | -10% | -$4.38 | 322,700 |
Broadcom | BRCM | $59.88 | $66.00 | -9% | -$6.13 | 331,200 |
Infoseek | SEEK | $23.75 | $25.94 | -8% | -$2.19 | 2,437,300 |
CyberCash | CYCH | $9.50 | $10.34 | -8% | -$0.84 | 1,102,800 |
Egghead.com | EGGS | $8.00 | $8.69 | -8% | -$0.69 | 1,784,000 |
E*TRADE | EGRP | $22.25 | $24.13 | -8% | -$1.88 | 927,800 |
Verisign | VRSN | $27.88 | $30.13 | -7% | -$2.25 | 151,000 |
Amazon.Com | AMZN | $119.00 | $127.25 | -6% | -$8.25 | 2,671,200 |
Doubleclick | DCLK | $31.25 | $33.38 | -6% | -$2.13 | 692,600 |
Yahoo! | YHOO | $91.06 | $96.88 | -6% | -$5.81 | 4,888,700 |
USWeb | USWB | $17.00 | $18.06 | -6% | -$1.06 | 596,400 |
Security Dynamics | SDTI | $11.31 | $12.00 | -6% | -$0.69 | 147,500 |
CDnow | CDNW | $10.63 | $11.25 | -6% | -$0.63 | 266,500 |
Cylink | CYLK | $9.56 | $10.13 | -6% | -$0.56 | 82,700 |
Mecklermedia | MECK | $23.88 | $25.25 | -5% | -$1.38 | 87,900 |
Verio | VRIO | $22.88 | $24.13 | -5% | -$1.25 | 109,700 |
America Online | AOL | $105.00 | $110.69 | -5% | -$5.69 | 6,803,800 |
N2K | NTKI | $9.63 | $10.13 | -5% | -$0.50 | 558,700 |
Network Solutions | NSOL | $32.00 | $33.63 | -5% | -$1.63 | 97,200 |
Broadcast.com | BCST | $51.00 | $53.50 | -5% | -$2.50 | 339,100 |
Axent | AXNT | $17.88 | $18.75 | -5% | -$0.88 | 436,800 |
Inktomi | INKT | $71.78 | $74.88 | -4% | -$3.09 | 506,500 |
Network Associates | NETA | $38.22 | $39.81 | -4% | -$1.59 | 3,393,600 |
VocalTec | VOCLF | $7.69 | $8.00 | -4% | -$0.31 | 256,900 |
Open Text | OTEXF | $13.59 | $14.13 | -4% | -$0.53 | 69,400 |
PSINet | PSIX | $15.44 | $15.94 | -3% | -$0.50 | 2,028,100 |
CheckPoint Software | CHKPF | $21.50 | $22.19 | -3% | -$0.69 | 1,319,600 |
Exodus | EXDS | $36.75 | $37.88 | -3% | -$1.13 | 66,900 |
Open Market | OMKT | $10.25 | $10.50 | -2% | -$0.25 | 352,800 |
ISS Group | ISSX | $37.63 | $38.00 | -1% | -$0.38 | 406,500 |
Secure Computing | SCUR | $9.00 | $9.00 | 0% | $0.00 | 202,400 |
Spyglass | SPYG | $13.69 | $13.63 | 0% | $0.06 | 718,500 |
Broadvision | BVSN | $22.25 | $21.75 | 2% | $0.50 | 523,800 |
CKS Group | CKSG | $17.38 | $16.63 | 5% | $0.75 | 138,500 |
IDT Corp | IDTC | $19.00 | $17.88 | 6% | $1.13 | 613,900 |
ISDEX as group: | ||||||
Total/Weighted Average | 1,475.91 | 1,588.22 | -7% | -112.31 | 60,348,300 |
Leading the list of decliners was RealNetworks, (NASDAQ:RNWK) with an 18%
drop to $22 per share despite the fact that there is no connection between
Russian President Boris Yeltsin and the functionality of RealNetworks’
media player or broadcast service. At least no known link.
24/7’s (NASDAQ:TFSM) tumble on the rumble landed it at $9.25 per share, off
16%. TFSM stock is down 33% from its IPO pricing August 14. Our analysis on
24/7 August 11 said its boatload of options could provide a selling point
for earnings conscious investors. Fully-diluted TFSM trades at what we
think may be 14x 1998 revenue estimates.
CMG (NASDAQ:CMGI) lost 14% based partly on its exposure to a basketful of
investments in startups that likely may not find an IPO window this year.
We think its equity in Lycos (NASDAQ:LCOS) and GeoCities (NASDAQ:GCTY)
provides it with some hedge, however. And deals along the lines of spinning
out these firms to already public companies provides (a la its deal with
Amazon and Planet All) liquidity via another route.
On the IPO subject, we expect that an IPO window may emerge for notable
firms–those with growth and more established business models late this
year or early 1999.
Of the few stocks that gained August 27, CKS Group (NASDAQ:CKSG) had no
news while IP communications provider IDT (NASDAQ:IDTC) did so on a upgrade
by Bear Stearns to “buy.”
Broadvision (NASDAQ:BVSN), meanwhile, moved up 2% to $22.25 per share on
SmartMoney naming it a top three pick (we picked it back in January, see
Internet Stock Report January 21, when BVSN was $6.25 per share).
