AOL, eBay, Mindspring all beat the Street’s expectations with a few of the toppers finding their way to the pole position of ISDEX performers. As a group the 50-stock bellwether ends up 9% since April 21.
However, under the surface the number of new issues clamoring to get out the IPO gate may dilute the market soon if the unchecked “.com” IPO-spamming continues. Apparently the correction just over a week ago wasn’t enough reality check for spec hunters.
That means I can see a possible 10% to 15% correction looming if the less than quality deals go public.
What the no-branders, no marketshare stocks going public do is water down the existing market at first and then could cause a flight to quality, sending the better established stocks up again.
That mini-pattern played out the past two weeks. I suspect we may see it again soon.
Of the leaders here note the ascendency of the security software sector, Security Dynamics (NASDAQ:SDTI), Network Associates (NASDAQ:NETA), CheckPoint Software (NASDAQ:CHKP) and Axent (NASDAQ:AXNT).
But the group still traded down from where they began the year, one of the few Internet sectors that hasn’t had the runs seen in most other areas. Tally ho:
ISDEX ® | 27-Apr-99 | % change | Point change | |
The Internet Stock Index | close | from | from | |
www.isdex.com | 21-Apr-99 | 21-Apr-99 | ||
ISDEX | 636.99 | 9.1% | 53.21 | |
NASDAQ | 2,602.41 | 4.6% | 113.33 | |
DJIA | 10,831.71 | 2.4% | 250.29 | |
Mindspring | MSPG | $ 116.31 | 26% | $23.81 |
eBay | EBAY | $ 209.25 | 25% | $42.50 |
Security Dynamics | SDTI | $ 22.00 | 25% | $4.38 |
Network Associates | NETA | $ 13.75 | 24% | $2.69 |
Broadvision | BVSN | $ 63.50 | 22% | $11.50 |
E*TRADE | EGRP | $ 119.44 | 21% | $20.94 |
VocalTec | VOCLF | $ 12.06 | 21% | $2.06 |
Axent | AXNT | $ 10.13 | 16% | $1.38 |
Onsale | ONSL | $ 27.69 | 15% | $3.69 |
Amazon.Com | AMZN | $ 205.88 | 15% | $26.63 |
Excite | XCIT | $ 156.63 | 14% | $19.63 |
Security First Technologies | SONE | $ 120.38 | 14% | $14.63 |
CheckPoint Software | CHKPF | $ 37.75 | 12% | $4.00 |
Beyond.com | BYND | $ 30.19 | 11% | $3.06 |
Open Market | OMKT | $ 14.06 | 9% | $1.19 |
CDnow | CDNW | $ 15.19 | 9% | $1.25 |
@Home Network | ATHM | $ 154.25 | 9% | $12.31 |
CMG Info | CMGI | $ 268.13 | 9% | $21.38 |
Exodus | EXDS | $ 91.06 | 8% | $7.06 |
Preview Travel | PTVL | $ 25.13 | 8% | $1.94 |
America Online | AOL | $ 153.00 | 7% | $10.25 |
Broadcom | BRCM | $ 78.38 | 7% | $5.25 |
CNET | CNET | $ 128.13 | 7% | $8.38 |
Broadcast.com | BCST | $ 134.13 | 7% | $8.63 |
Inktomi | INKT | $ 126.50 | 7% | $7.88 |
Cisco | CSCO | $ 115.06 | 7% | $7.13 |
Infospace.com | INSP | $ 133.19 | 6% | $7.69 |
Yahoo! | YHOO | $ 184.50 | 6% | $9.63 |
GeoCities | GCTY | $ 122.13 | 5% | $6.13 |
Doubleclick | DCLK | $ 148.50 | 5% | $6.81 |
iVillage | IVIL | $ 95.13 | 5% | $4.13 |
Egghead.com | EGGS | $ 14.75 | 4% | $0.56 |
PSINet | PSIX | $ 58.44 | 4% | $2.06 |
Sportsline USA | SPLN | $ 44.00 | 2% | $1.00 |
Earthlink Network | ELNK | $ 70.63 | 2% | $1.25 |
Cyberian Outpost | COOL | $ 15.63 | 2% | $0.25 |
Prodigy | PRGY | $ 30.31 | 1% | $0.31 |
ISS Group | ISSX | $ 54.63 | 1% | $0.38 |
24/7 Media | TFSM | $ 47.75 | -1% | -$0.25 |
Lycos | LCOS | $ 100.94 | -1% | -$0.56 |
Verio | VRIO | $ 68.50 | -4% | -$2.50 |
Xoom.com | XMCM | $ 73.13 | -5% | -$3.63 |
RealNetworks | RNWK | $ 181.13 | -5% | -$9.19 |
Concentric | CNCX | $ 79.94 | -5% | -$4.31 |
Infoseek | SEEK | $ 55.00 | -7% | -$3.88 |
USWeb | USWB | $ 26.81 | -7% | -$1.94 |
CyberCash | CYCH | $ 16.56 | -7% | -$1.25 |
Go2Net | GNET | $ 162.88 | -8% | -$14.63 |
Network Solutions | NSOL | $ 83.31 | -9% | -$8.69 |
Verisign | VRSN | $ 124.06 | -15% | -$21.56 |
News behind some moves:
My suggestion to StarMedia: go for $20. Prodigy raised $120 million. At $20, StarMedia would raise $140 million, about what it’ll need to play across the wide expanse of Latin America.
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