Keyword: Herd Mentality Russian Economy Knocks Stocks

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).

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