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:
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.
for 3Q98 vs. $1.9 million 3Q97. Loss reaches $3.9 million vs. $1.9 million
3Q97.
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.
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.
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.
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.
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.
