Up 10.5%: ISDEX Finds Legs In Bullish Rally

The market taketh and the market giveth. This week was the latter, as
ISDEX, The Internet Stock Index, gained nearly 11% on its way past the 100
mark. The comeback brings the 50-strong basket of stocks back to a place where
it began in 1998, a position believed to hold promise in many
ways.


Consider that revenue, users, page views, and even earnings in some
cases or narrowed losses in others, all progressed towards a larger
marketplace for Internet goods and services. It makes little sense with the
industry growth that these stocks should remain in purgatory.


One thing we see in ISDEX upside since September 1, is the more
“democratically” dispersed nature of gainers. Topping the poppers is
Earthlink (NASDAQ:ELNK), which ran on a tout from Everen Securities, who rates
ELNK as “long term outperform” especially in light of its share price vs.
recent highs.


On the downside, investors have given a big thumbs down, way
down, on USWeb (NASDAQ:USWB), making a $350 million stock swap for Internet
marketing-ad firm CKS Group (NASDAQ:CKSG). USWB shares fell 26% to $10.625
per share. CKSG shares also went south, albeit in a slightly more
climate-controlled 1% drop since September 1. Maybe it’s time to rethink
reinventing the corporation?


The abacus-thumping results:





















































































































































































































































































































































































































































































































ISDEX ®

 

08-Sep-98

% change

Point change

% change

The Internet Stock Index

 

close

from

from

from

www.isdex.com

 

 

01-Sep-98

01-Sep-98

31-Dec-97

 

 

 

 

 

or from IPO*

ISDEX Geometric Average

 

101.24

8.6%

8.04

1.4%

ISDEX Price Wtd. Composite

 

1,341.02

10.5%

127.94

49.7%

NASDAQ

 

1,660.86

5.4%

85.72

5.8%

DJIA

 

8,020.78

2.5%

193.35

1.4%

 

 

 

 

 

 

Earthlink Network

ELNK

$36.00

35%

$9.25

180%

Inktomi*

INKT

$67.50

31%

$16.13

275%

Excite

XCIT

$30.00

25%

$6.00

100%

Secure Computing

SCUR

$8.88

22%

$1.63

-25%

Security Dynamics

SDTI

$12.25

21%

$2.16

-66%

Open Text

OTEXF

$13.44

21%

$2.31

0%

Broadcast.com*

BCST

$41.95

19%

$6.70

133%

CMG Info

CMGI

$49.63

18%

$7.63

228%

Concentric

CNCX

$17.75

17%

$2.63

100%

Yahoo!

YHOO

$84.63

17%

$12.38

144%

Infoseek

SEEK

$21.00

17%

$3.06

95%

24/7 Media*

TFSM

$10.63

16%

$1.50

-24%

Mindspring

MSPG

$35.13

16%

$4.88

213%

Open Market

OMKT

$11.44

15%

$1.53

19%

Amazon.Com

AMZN

$92.25

15%

$12.30

206%

Network Solutions

NSOL

$31.81

15%

$4.06

142%

Broadcom*

BRCM

$68.50

15%

$8.69

185%

PSINet

PSIX

$14.31

15%

$1.81

179%

RealNetworks

RNWK

$19.88

14%

$2.38

43%

WavePhore*

WAVO

$6.00

13%

$0.69

-36%

America Online

AOL

$95.25

10%

$9.00

110%

CDnow

CDNW

$9.88

10%

$0.88

-38%

Netscape

NSCP

$23.00

9%

$1.88

-6%

Verio*

VRIO

$23.25

9%

$1.88

1%

Axent

AXNT

$17.19

8%

$1.31

0%

IDT Corp

IDTC

$17.25

8%

$1.25

-15%

N2K

NTKI

$8.75

8%

$0.63

-40%

Network Associates

NETA

$34.44

7%

$2.38

-35%

VocalTec

VOCLF

$8.81

7%

$0.56

-57%

GeoCities*

GCTY

$22.75

6%

$1.38

34%

E*TRADE

EGRP

$19.00

6%

$1.13

-17%

Egghead.com

EGGS

$7.50

4%

$0.31

15%

ISS Group*

ISSX

$28.38

4%

$1.13

29%

Broadvision

BVSN

$22.13

4%

$0.88

240%

CheckPoint Software

CHKPF

$20.00

4%

$0.75

-51%

Doubleclick

DCLK

$25.63

4%

$0.88

51%

Lycos

LCOS

$27.69

4%

$0.94

34%

Cylink

CYLK

$8.19

3%

$0.25

-16%

Onsale

ONSL

$18.50

3%

$0.50

3%

CNET

CNWK

$44.25

3%

$1.13

193%

CyberCash

CYCH

$8.50

1%

$0.13

-33%

Spyglass

SPYG

$12.50

1%

$0.13

153%

@Home Network

ATHM

$33.69

1%

$0.19

34%

CKS Group

CKSG

$14.00

-1%

-$0.13

-1%

Security First Net Bank

SFNB

$12.50

-3%

-$0.38

72%

Exodus*

EXDS

$25.75

-4%

-$1.00

72%

Sportsline USA

SPLN

$19.13

-5%

-$0.94

78%

Mecklermedia

MECK

$21.31

-5%

-$1.19

-14%

Verisign

VRSN

$28.25

-6%

-$1.75

102%

USWeb

USWB

$10.63

-26%

-$3.81

13%

* change from IPO 1998

 

 

 

 

 

TOTAL

 

1,302.14

11%

133.50

50%

SIMPLE AVERAGE

 

27.13

11%

2.78

50%



News and moves:



  • 98.09.08 – Mecklermedia (NASDAQ:MECK), producer of this report,
    announced that its Internet World India trade show drew an audience of
    25,000 during August 25-28.
    This is the first year of the event. Mecklermedia’s global presence
    includes Internet World trade shows and licensed publications throughout
    Canada, Mexico, South America, Europe, the Middle East, Africa, Asia, and
    Australia, and Internet.com.


  • 98.09.04 – Security Dynamics (NASDAQ:SDTI), which has been a sleeper
    all year, gets some recognition for its RSA data encryption that was used
    as the underlying technology when President Bill Clinton and Irish Prime
    Minister Bert Ahern sign an Internet e-commerce agreement with “digital
    signatures.”


  • 98.09.03 – CDnow (NASDAQ:CDNW) is named the top music-selling site
    on the Web by eMarketer, which evaluated more than 100 online music sites
    looking at selection, price, usability and presentation. We believe that
    despite the plans of Amazon.com to also ramp up music sales (NASDAQ:AMZN),
    CDnow has the lead in sales and usage to stay at the fore of Web-based
    music retailing.


  • 98.09.02 – eBay (IPO pending) will pay AOL (NYSE:AOL) $12 million to
    become AOL’s auction provider for the next three years. While details of the
    deal are not known, AOL also usually gets warrants or revenue splits on
    top of these sorts of agreements.



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