Welcome Cisco, ebay & Beyond.com ISDEX Adds Three New Stocks

Cisco has been on our radar for eons as the leader
in networking solutions but as network and Internet become interchangeable
(there are no closed systems in the future, everything will be
“Internetted”), it now occupies a prominent spot as leading plumber of the
continued rollout of the Web.


ebay takes honors as pioneering a new
e-commerce model that puts people together for personal auctions and gets
out of the way as easy as possible, which is easier said than done. Proof
that we see new ideas that can compete with the AOLs, Amazons and Yahoos of
the
world.


Beyond.com wins the rhyme award for changing its name from the
generic “Software.net,” although we’re still trying to figure out what
“beyond” it refers to (maybe they just wanted a rhyming sound). Beyond.com
sells software via the Internet with the slogan “the Software Superstore.”
We’ll see if it can become the leader with the half dozen rivals who say
the same thing.


Overall ISDEX value has been adjusted to reflect the change with the
benchmark being the same, December 31, 1996 at 100. Also, the computing of
ISDEX is now an arithmetic average rather than a geometric average to put it
closer to the price volatility and investor’s preferred method of tracking
it.


The update further establishes ISDEX as the world’s leading Internet
stock index followed literally on every continent and more nations than we
can list without sounding like the United Nations.


We thank you for
making it so and continue to look for ways to innovate this space to
empower both retail and institutional investor, industry exec and venture
capitalist with original analysis and the only index as current as the
Internet itself.


Earnings (or lack thereof) drives most of the stocks, as third
quarter results start popping out. Who’s hot and not October 6 – 13:





















































































































































































































































































































































































































































































































ISDEX ®

 

13-Oct-98

% change

Point change

% change

The Internet Stock Index

 

close

from

from

from

www.isdex.com

 

 

06-Oct-98

06-Oct-98

31-Dec-97

 

 

 

 

 

or from IPO*

ISDEX Arithmetic Average

 

124.73

-7.3%

-9.87

24.9%

ISDEX Price Wtd. Composite

 

1,314.28

-6.8%

-96.03

43.5%

NASDAQ

 

1,509.45

-0.1%

-1.38

-3.9%

DJIA

 

7,938.14

2.4%

187.44

0.4%

 

 

 

 

 

 

Exodus*

EXDS

$23.38

38%

$6.38

56%

RealNetworks

RNWK

$33.38

37%

$9.00

141%

Mecklermedia

MECK

$26.63

21%

$4.69

7%

N2K

NTKI

$5.44

21%

$0.94

-63%

Network Associates

NETA

$31.25

12%

$3.25

-41%

Verisign*

VRSN

$28.38

11%

$2.75

103%

Inktomi*

INKT

$79.25

10%

$7.19

340%

Cisco

CSCO

$50.69

10%

$4.50

36%

Concentric

CNCX

$19.63

9%

$1.63

121%

Broadvision

BVSN

$12.50

5%

$0.63

92%

Broadcom*

BRCM

$67.94

4%

$2.44

183%

Axent

AXNT

$15.44

3%

$0.44

-11%

CheckPoint Software

CHKPF

$15.81

0%

$0.00

-61%

Earthlink Network

ELNK

$36.25

-3%

-$1.00

182%

Security First Technologies

SONE

$12.50

-4%

-$0.50

72%

Security Dynamics

SDTI

$8.28

-4%

-$0.34

-77%

Spyglass

SPYG

$10.69

-5%

-$0.56

116%

@Home Network

ATHM

$41.50

-5%

-$2.25

65%

America Online

AOL

$92.25

-6%

-$5.38

104%

Netscape

NSCP

$17.75

-7%

-$1.31

-27%

Lycos

LCOS

$27.50

-9%

-$2.63

33%

VocalTec

VOCLF

$6.50

-10%

-$0.75

-68%

CDnow

CDNW

$7.69

-11%

-$0.94

-52%

Verio*

VRIO

$17.50

-11%

-$2.25

-24%

CKS Group

CKSG

$12.50

-12%

-$1.63

-12%

Open Text

OTEXF

$11.25

-12%

-$1.50

-16%

Yahoo!

YHOO

$109.94

-12%

-$14.88

218%

ISS Group*

ISSX

$21.00

-13%

-$3.00

-5%

Open Market

OMKT

$5.25

-13%

-$0.75

-45%

CMG Info

CMGI

$41.50

-13%

-$6.06

174%

Broadcast.com*

BCST

$37.00

-13%

-$5.50

106%

PSINet

PSIX

$11.75

-15%

-$2.00

129%

Excite

XCIT

$32.94

-15%

-$5.75

120%

Network Solutions

NSOL

$30.75

-15%

-$5.50

134%

Amazon.Com

AMZN

$91.38

-16%

-$16.94

203%

USWeb

USWB

$8.75

-17%

-$1.81

-7%

E*TRADE

EGRP

$13.00

-18%

-$2.81

-43%

Infoseek

SEEK

$19.75

-18%

-$4.38

84%

Doubleclick

DCLK

$17.19

-19%

-$3.94

1%

Mindspring

MSPG

$27.25

-19%

-$6.25

143%

ebay

EBAY

$29.38

-20%

-$7.13

63%

GeoCities*

GCTY

$18.31

-20%

-$4.56

8%

CNET

CNWK

$34.94

-20%

-$8.75

131%

CyberCash

CYCH

$7.13

-20%

-$1.81

-44%

Beyond.com

BYND

$7.25

-21%

-$1.88

-19%

Egghead.com

EGGS

$5.13

-21%

-$1.38

-21%

Onsale

ONSL

$13.50

-27%

-$4.88

-25%

IDT Corp

IDTC

$13.00

-31%

-$5.75

-36%

24/7 Media*

TFSM

$6.38

-33%

-$3.13

-54%

Sportsline USA

SPLN

$9.13

-44%

-$7.25

-15%

* change from IPO 1998

 

 

 

 

 

TOTAL

 

1,314.28

-7%

-96.03

44%

SIMPLE AVERAGE

 

26.82

-7%

-1.96

44%


News behind the moves:



  • 98.10.13 – Security Dynamics (NASDAQ:SDTI), long oversold by some
    accounts, gets some interest today based on it meeting third quarter
    earnings estimates of $0.10 EPS. Revenue reaches $40.8 million vs. $35.9
    million 3Q97. SDTI also announced a 4 million share buy back.


    No surprise to us: its $154 million cash and marketable securities implies
    a $185 million enterprise value. On an annualized basis, that’s barely more
    than 1x revenue, in a world where software trades at 3x to 5x. Potential
    takeover bait in our view and probably long overdue. Prudential has a
    “strong buy” on SDTI.


  • 98.10.13 – Broadcast.com (NASDAQ:BCST) reports $4.5 million revenue
    for 3Q98 vs. $1.9 million 3Q97. Loss reaches $3.9 million vs. $1.9 million
    3Q97.


  • 98.10.12 – RealNetworks (NASDAQ:RNWK) signs Lotus (NYSE:IBM) as an
    outlet and strategic ally for its G2 video-audio player. The move follows
    Real’s deal with AOL (NYSE:AOL) to deploy its player on the AOL online
    service. Between the two we estimate Real may have opened up about 15
    million to 20 million universe of users. Assuming some already use a Real
    product, we estimate it may represent a net new potential user base of about
    10 million.


  • 98.10.12 – Earthlink (NASDAQ:ELNK) reports third quarter revenue
    of $49.8 million vs. $21 million 3Q97. Net loss before charges smaller than
    expected at $1.1 million or loss per share of $0.04. The ISP also announced
    a lineup of content partners at Internet World to make it stickier than
    your average ISP.


  • 98.10.09 – Amazon.com (NASDAQ:AMZN) plans on launching a book
    retail Web service aimed at the German market, in the heart of
    Bertelsmann’s media empire. Bertelsmann, you may recall, agreed to invest
    $200 million in barnesandnoble.com just days ago. The German media giant
    (as large as Time Warner) also expands its own BOL service next month in
    Germany, the UK, France, Spain and the Netherlands.


  • 98.10.08 – Mecklermedia (NASDAQ:MECK), producer of this report,
    agrees to sell for $29 per share cash to Penton Media (NYSE:PME) for about
    $274 million total. On merger completion, Chairman and CEO Alan Meckler
    agrees to acquire an 80.1% stake in Internet.com (Mecklermedia’s Website).


    The deal is expected to be completed in November and has been approved
    by both boards. Penton owns and operate more than 60 trade shows and
    publishes trade titles. With the acquisition it will have about 100 trade
    shows with Mecklermedia’s stable of Internet World and ISPCON events and
    Internet World print newspaper.


  • 98.10.07 – N2K (NASDAQ:NTKI) gains 22% to $5.50 per share on news
    it may merge with CDnow (NASDAQ:CDNW) in a stock swap. The combined firm
    would have about 50% of the Web-based music sales market. CDNW shares end
    slightly up at 2% to $8.125 per share. We think the move is a good one and
    that acquisition by a larger player–a barnesandnoble.com perhaps–would
    really be a one-two punch after its stock, and CDnow’s, have both been
    taking jabs all year long.

  • News Around the Web