Up 92% Past Week: Onsale Leads ISDEX E-tail Buying Spree

As the U.S. gets in the turkey eating mood (or tofu for vegetarians) it’s
beginning to look like a banquet on Wall Street as ISDEX climbed 11% the
past week, led by the e-tail sector once again.


The top four gainers all sell stuff. Two of these stocks–Amazon
(NASDAQ:AMZN) and eBay (NASDAQ:EBAY) looked ridiculously overvalued going
into the week but managed to gain 40% to 50% even so. Proof the greater
fool theory has been embraced.


And also there’s evidence that there’s a real lack of “known” e-tail stocks
to choose from, hence the sudden surge in a handful of other commerce firms
such as “nerdtailer” Egghead.com (NASDAQ:EGGS), and the music sellers CDnow
(NASDAQ:CDNW) and N2K (NASDAQ:NTKI).


Indeed, investors (or traders along for the ride) frowning on the
astronomical units needed to buy shares of eBay found solace in buying
shares of Onsale (NASDAQ:ONSL) which hit an all-time high of $50.25 per
share before ending the day up 51% yesterday to $43.875 per share. Fueling
the rocket? News the web auctioneer/e-tailer debuted a holiday shopping site.


Meanwhile, Beyond.com (NASDAQ:BYND) went a little beyond and raised $50
million via 7.25% interest converts which convert to equity at $18.34 per
share. The software e-tailer was cashed up from its June IPO but tapped the
market for the “get bigger, faster, and even bigger” nature of the Internet
e-tail. Wall Street rewards dominating leaders–something Beyond isn’t yet
but wants to be.


Here’s our crunching of the numbers, ISDEX gainers and painers for the
period November 17 – 24:


































































































































































































































































































































































































































ISDEX ®

 

24-Nov-98

% change

Point change

The Internet Stock Index

 

close

from

from

www.isdex.com

 

 

17-Nov-98

17-Nov-98

 

 

 

 

 

ISDEX

 

230.15

11.0%

22.80

NASDAQ

 

1,965.88

4.7%

87.36

DJIA

 

9,301.15

3.5%

314.87

 

 

 

 

 

Onsale

ONSL

$43.88

92%

$21.00

Beyond.com

BYND

$26.38

60%

$9.94

eBay*

EBAY

$196.81

53%

$68.19

Amazon.Com

AMZN

$214.50

44%

$66.00

Broadvision

BVSN

$22.63

43%

$6.81

Broadcast.com*

BCST

$70.00

41%

$20.25

Netscape

NSCP

$39.88

36%

$10.63

Open Text

OTEXF

$18.88

35%

$4.88

Egghead.com

EGGS

$18.25

34%

$4.63

@Home Network

ATHM

$65.06

32%

$15.69

America Online

AOL

$91.38

21%

$16.00

CKS Group

CKSG

$32.00

20%

$5.38

Yahoo!

YHOO

$210.25

19%

$33.50

E*TRADE

EGRP

$26.75

19%

$4.25

Doubleclick

DCLK

$40.50

16%

$5.63

USWeb

USWB

$21.75

15%

$2.88

Security First Technologies

SONE

$19.25

13%

$2.25

CMG Info

CMGI

$83.00

12%

$8.63

CyberCash

CYCH

$12.13

11%

$1.25

Cisco

CSCO

$76.19

11%

$7.44

Verio*

VRIO

$17.88

10%

$1.69

Concentric

CNCX

$28.25

10%

$2.50

CDnow

CDNW

$14.50

9%

$1.25

Security Dynamics

SDTI

$11.88

9%

$1.00

Spyglass

SPYG

$19.00

7%

$1.25

Exodus*

EXDS

$36.25

7%

$2.31

N2K

NTKI

$11.38

5%

$0.56

CheckPoint Software

CHKPF

$30.88

5%

$1.50

VocalTec

VOCLF

$13.00

5%

$0.63

Inktomi*

INKT

$138.38

5%

$6.38

IDT Corp

IDTC

$18.75

3%

$0.56

Lycos

LCOS

$62.31

3%

$1.81

24/7 Media*

TFSM

$18.63

3%

$0.50

Mindspring

MSPG

$57.50

3%

$1.44

PSINet

PSIX

$18.13

1%

$0.25

Mecklermedia

MECK

$28.88

1%

$0.38

Broadcom*

BRCM

$89.38

1%

$0.56

Verisign*

VRSN

$37.25

0%

-$0.13

CNET

CNWK

$58.13

-1%

-$0.88

Network Associates

NETA

$45.00

-2%

-$0.94

Network Solutions

NSOL

$63.00

-2%

-$1.50

ISS Group*

ISSX

$35.63

-4%

-$1.50

RealNetworks

RNWK

$39.50

-4%

-$1.75

Axent

AXNT

$23.06

-4%

-$1.06

Earthlink Network

ELNK

$53.25

-5%

-$2.81

Sportsline USA

SPLN

$15.38

-6%

-$1.06

Excite

XCIT

$49.06

-7%

-$3.63

Infoseek

SEEK

$33.00

-8%

-$2.75

GeoCities*

GCTY

$38.56

-10%

-$4.19

Open Market

OMKT

$6.81

-13%

-$1.06

* change from IPO 1998

 

 

 

 



News behind the moves:


  • 98.11.24 – AOL (NYSE:AOL) makes it official with a $4.2 billion stock
    swap for Netscape (NASDAQ:NSCP). We target the revenue multiple at 6.8x
    annualized or about 5x our estimated Netscape revenue for 1999. On a Web
    site value-per-user basis the deal could be $268. The combined company
    would generate about $4 billion revenue or trade about 11x annualized
    revenue for the two of them.


    AOL now owns the software platforms for the world’s largest online service
    (AOL, 14M subscribers), the world’s largest instant chat service (ICQ, 21M
    users) and once the deal goes through will own the world’s largest (though
    waning) browser maker (Netscape, 60M users).


  • 98.11.23 – eBay (NASDAQ:EBAY) rockets up 31% today to $193 per share
    as retail investors start to believe strongly that it could be the “next
    Yahoo.” We’ve been a doubter of EBAY valuation since day one but think that
    now too much momentum, shortsellers, enthusiasts, combined with its market
    leader status, may keep it in the top valuation arena for quite some time.
    But maybe not forever. One hiccup and EBAY could be at the bottom of the
    Bay. And auctions will be everywhere soon. Another way of looking at eBay
    is as electronic classifieds. Doesn’t sound as sexy does it?


  • 98.11.23 – Egghead.com (NASDAQ:EGGS), as many of you e-mailed us
    about, debuts a “new and improved” Web site that blends its e-tail, auction
    and surplus sales into an easier to use front-end. As an early believer in
    EGGS going back to the start of this year, we applaud Egghead’s move from
    terrestrial-based heavy overhead bricks and mortar to “zero G” (zero
    gravity, my term for the benefits and advantages of Internet commerce).


    But Egghead’s new move to sell non-tech items doesn’t seem quite ready for
    prime time. Its sporting goods yielded no results at all for “boxing” – a
    very common sporting good. Nor was “jump rope” found in a search either. On
    the Internet, having more items than a land-based store is paramount.
    Egghead should probably stick to the tech stuff and home electronics before
    debuting new offerings without a full product range supporting it.


  • 98.11.20 – Inktomi (NASDAQ:INKT) inks a deal with AOL (NYSE:AOL) for
    AOL’s ICQ instant messaging platform. Inktomi’s search engine will power
    the search for ICQ’s new interface debuting soon. ICQ reports an average of
    4.8 million registrants use ICQ daily for about 69 minutes. About 700,000
    simultaneous users are on during peak usage.


  • 98.11.20 – Verio (NASDAQ:VRIO) agrees to sell $400 million, 11.25%
    senior notes due 2008. The issue will help the ISP in its $267 million
    acquisition of Hiway Technologies. Terms there: $176 million cash and 4.92
    million VRIO shares.


  • 98.11.19 – EarthWeb (NASDAQ:EWBX) shares climb 20% to $47 per share,
    as do shares of another recent IPO, theglobe.com (NASDAQ:TGLO) which rose
    31% to $42 per share.


  • 98.11.18 – Infoseek (NASDAQ:SEEK) and Disney (NYSE:DIS) complete their
    agreement with Disney acquiring 43% of SEEK for $430 million and Disney’s
    interest in Starwave. The two have been planning a new Web guide/service
    called “go.com” set to debut any day now. It will be first proof of “fruit”
    from the Disney deal and one which we’ll watch closely to set the tone for
    the future of SEEK shares.




    Attention Internet Startups! LaunchPad West StartUp
    Pavilion, part of Spring Internet World ’99
    , one of the world’s
    largest Internet industry trade shows offers exhibit space for startups
    ONLY at a reduced price in order to meet their often limited capital
    available at the startup stage. Contact Sean Moriarty (hurry, space
    limited): mailto:[email protected]

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