Open Market Up 130% ISDEX Sees Smaller Stocks Shine

Commerce software maker Open Market (NASDAQ:OMKT), long
ignored as investors snapped up shares of more well-known e-tailers, finally
got its due as OMKT soared 130% to $15.6875 per share since November
24.


Behind the sleigh ride was Open Market’s debut November 30 of its
‘eChristmas program’ which lets small businesses add payment, credit card
approval and transaction ability to their Web sites on a small fee
basis–rather than having to buy and install huge commerce server software
packages.


The move may foreshadow Open Market becoming more
service-oriented rather than software-oriented in our opinion. There’s a
fine line between software and service on the Web but the key indicator is
the business model.


Together with partner ICOMM, the eChristmas program
charges a $100 sign-up fee, $100 per month service fee (with a one-month
minimum) and $0.95 per transaction (exclusive of credit card fees).


Let’s
see how the ISDEX looks with the buying spree that took place the past few
days, followed by healthy doses of profit taking. Net net, the second e-tail
wave (smallbies) remain ahead, showing the strength of the overall belief
in Web commerce, with not only e-tailers but enablers (CyberCash, Open
Market, Security First) showing gains:



























































































































































































































































































































































































































ISDEX ®

 

01-Dec-98

% change

Point change

The Internet Stock Index

 

close

from

from

www.isdex.com

 

 

24-Nov-98

24-Nov-98

 

 

 

 

 

ISDEX

 

234.74

2.0%

4.59

NASDAQ

 

2,003.75

1.9%

37.87

DJIA

 

9,133.54

-1.8%

-167.61

 

 

 

 

 

Open Market

OMKT

$15.69

130%

$8.88

CDnow

CDNW

$22.75

57%

$8.25

24/7 Media*

TFSM

$27.50

48%

$8.88

N2K

NTKI

$16.50

45%

$5.13

Egghead.com

EGGS

$25.19

38%

$6.94

CyberCash

CYCH

$16.00

32%

$3.88

Spyglass

SPYG

$24.50

29%

$5.50

Security Dynamics

SDTI

$15.13

27%

$3.25

Earthlink Network

ELNK

$66.00

24%

$12.75

Onsale

ONSL

$54.25

24%

$10.38

Sportsline USA

SPLN

$17.88

16%

$2.50

Security First Technologies

SONE

$21.88

14%

$2.63

Network Associates

NETA

$51.00

13%

$6.00

Axent

AXNT

$25.50

11%

$2.44

PSINet

PSIX

$20.00

10%

$1.88

Mindspring

MSPG

$62.63

9%

$5.13

IDT Corp

IDTC

$20.38

9%

$1.63

Broadvision

BVSN

$24.50

8%

$1.88

Excite

XCIT

$52.00

6%

$2.94

eBay*

EBAY

$207.25

5%

$10.44

Cisco

CSCO

$79.75

5%

$3.56

Verisign*

VRSN

$38.13

2%

$0.88

CheckPoint Software

CHKPF

$31.44

2%

$0.56

Exodus*

EXDS

$36.88

2%

$0.63

USWeb

USWB

$22.13

2%

$0.38

Broadcom*

BRCM

$90.63

1%

$1.25

Network Solutions

NSOL

$63.50

1%

$0.50

Mecklermedia

MECK

$28.88

0%

$0.00

Verio*

VRIO

$17.88

0%

$0.00

CKS Group

CKSG

$31.88

0%

-$0.13

Infoseek

SEEK

$32.81

-1%

-$0.19

America Online

AOL

$89.88

-2%

-$1.50

Yahoo!

YHOO

$206.25

-2%

-$4.00

Concentric

CNCX

$27.69

-2%

-$0.56

Amazon.Com

AMZN

$209.50

-2%

-$5.00

Inktomi*

INKT

$133.50

-4%

-$4.88

E*TRADE

EGRP

$25.44

-5%

-$1.31

ISS Group*

ISSX

$33.75

-5%

-$1.88

Open Text

OTEXF

$17.88

-5%

-$1.00

Netscape

NSCP

$37.75

-5%

-$2.13

Beyond.com

BYND

$24.88

-6%

-$1.50

RealNetworks

RNWK

$36.75

-7%

-$2.75

VocalTec

VOCLF

$12.06

-7%

-$0.94

Lycos

LCOS

$57.69

-7%

-$4.63

CMG Info

CMGI

$76.25

-8%

-$6.75

@Home Network

ATHM

$59.50

-9%

-$5.56

Doubleclick

DCLK

$36.31

-10%

-$4.19

Broadcast.com*

BCST

$62.50

-11%

-$7.50

CNET

CNWK

$50.81

-13%

-$7.31

GeoCities*

GCTY

$32.00

-17%

-$6.56



Other stocks in ISDEX that rode the bull the past week include second-wave
‘we do e-tail, too’ stocks CDnow (NASDAQ:CDNW), Egghead.com (NASDAQ:EGGS)
and ONSALE (NASDAQ:ONSL), which screamed to $97 per share amid
eBay-inspired frenzy.


ONSL closed December 1 at $54.25 per share, up 24%
since November 24. ONSL trades about 12% of eBay (NASDAQ:EBAY), despite
being a similar peer group, Web-based auctions. One reason for ONSL’s huge
run but we believe EBAY is grossly overvalued and ONSL slightly
undervalued–still.


Spyglass (NASDAQ:SPYG) finds some legs with a 29%
rise to $24.50 per share. No official news for the pop, but some buzz that
SPYG may be a good takeover candidate. The cable set-top or PC companies
could use Spyglass’ embedded browsers for devices, an area that we think
could be bigger than PCs in the next 5 years.


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