Internet stocks headed south in afternoon trading despite positive comments
from industry analysts and buy-out buzz surrounding shares of TheStreet.com.
internet.com’s Internet Stock Index (ISDEX) fell 4.86, or 0.52 percent, to
926.98, the Nasdaq composite gained 6.88 to 4427.65 and the Dow Jones
Industrial average plunged 156.68 to 10561.41.
added 13/16 to 16-13/16. The financial news and editorial Web site has hired
investment bank Wasserstein Parella & Co. to explore strategic business
opportunities and alternatives, including a possible sale of the company.
After yesterday’s close, Lycos (LCOS)
reported earnings of $0.03 per share, two cents better than the First Call
mean estimate. Merrill Lynch analyst, Henry Blodget reacted by raising his
near-term rating from “accumulate” to “buy.”
“Lycos reported an impressive quarter, exceeding consensus revenue, EPS and
pageview estimates. The
outlook for the next few quarters remains strong. We are raising our
estimates and, for the following reasons, raising our near-term rating to
Buy, with a 12-month price objective of $100. The valuation is cheap by
Internet standards (90X C2001E EPS), and we believe there is still upside to
our estimates” wrote Blodget in a note to clients. Shares of LCOS added
3-9/16 to 72-5/8.
internet.com analyst, Chris Nerney featured Lycos in his daily Stock Tracker
Netcentives (NCNT), an Internet customer loyalty company, announced it will acquire Post
Communications for roughly $333 million in stock. Post provides e-mail
marketing services. Shares of NCNT lost 2-3/4 to 49-1/4.
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