Crew....from launchingpad (notice the YTD numbers):
With the global financial markets adversely affecting the Stock market,the Internet Telephony Sector experienced its worst week of the year. Dropping over 12%, there was no protection to be found in Large, Mid or Small Cap stocks, as all felt the effects.
Qwest and Level 3, which were both added to the Nasdaq 100 in the past
week, followed the trend of that group and both experienced some of
their largest drops of the year. Qwest is down close to 25% in the last few weeks, and Level 3 close to 20%. The Mid Cap sector that had seen some stability among the more recent turns of the market, joined into the marketwide drop, with ETEL and RMII, both dropping over 25% last week. IDTC, which had avoided a majority of the correction, finally succumbed and joined in the overall sector weakness. The previously damaged Mids , NSPK, NMSS, and VOCLF lost much of any started recovery and are still sitting near their respective lows of the year. The five dollar and under Internet Telephony stocks were once again a mixed bag as this group included few of the only stocks to gain in the teeth of the further market downturn. LKON and CAGI were two who bucked the trend and rose. Others lost a smaller percentage as the damage has been done over the course of the last several months.
While the loss in price has been dramatic on several of the IT issues,
many investors view this as an undervalued sector now and anticipate
bargain hunting to begin within the next two weeks. The value of the
sector now seems to be more inline with current revenues, as opposed to future earnings, making for many good values. As always, we will be
watching to see which issues break the pattern first and signal which
direction the sector will have heading towards the fall earnings, which should be an important season for the sector.
The Internet Telephony Index
For the week 8/24/98 to 8/28/98
Symbol Price Week YTD% Year Open Week Open
Change
ACCR 0.81 -15.63% -50.15% 1.63 0.96
ANET 5.87 2.09% -38.21% 9.50 5.75
ARLCF 3.00 -15.73% 20.00% 2.50 3.56
BRKT 12.56 -16.93% 6.89% 11.75 15.12
CAGI 1.13 3.67% 178.33% 0.41 1.09
CMDL 8.62 -20.26% -7.12% 9.28 10.81
DGIV 2.31 -13.81% 149.73% 0.93 2.68
DLGC 28.03 -10.65% -34.05% 42.50 31.37
ETEL 11.43 -26.54% 112.65% 5.38 15.56
FAXX 3.00 -14.29% 14.29% 2.63 3.50
FTEL 1.03 -10.43% -74.04% 3.97 1.15
HYC 8.62 -13.80% -39.51% 14.25 10.00
IDTC 16.68 -11.61% -18.13% 20.38 18.87
INTL 14.31 -4.60% -27.08% 19.63 15.00
LKON 1.37 9.60% 144.64% 0.56 1.25
LVLT 33.18 -15.18% -16.53% 39.75 39.12
NMSS 11.50 -8.00% -74.59% 45.25 12.50
NSPK 8.12 -22.67% -67.68% 25.13 10.50
NTRX 1.18 0.00% 4.89% 1.13 1.18
OZEMY 13.25 -29.78% 68.25% 7.88 18.87
QWST 29.81 -10.83% -0.84% 30.06 33.43
RMII 10.12 -27.71% 237.33% 3.00 14.00
VOCLF 8.00 -7.83% -61.21% 20.63 8.68
-12.21% 18.60% |
