Morning Report
Wed Jun 30
10 That Fell:
Mining The ISDEX Percentages
By Steve Harmon
Senior Investment Analyst
internet.com
"Where Wall Street Meets The Web"
Au contrare. Not my typical investment style but when you see some market leaders
down in the bottom 10 of the 50 stocks in
ISDEX it makes me wonder if the percentages mean anything. Maybe they do.
Case in point: DoubleClick (NASDAQ:DCLK - news) . Since June 16 it's off -2%,
which taken in that timeframe may not
seem substantial. But let's back out and take a wider look.
DCLK hit the skids on rumors of the now confirmed deal between Compaq's AltaVista
unit and CMGI (NASDAQ:CMGI -
news) . AltaVista accounts for about half of DCLK's revenue. The fear was that CMGI,
with its own ad properties, would
bump DoubleClick off AltaVista.
Two things that may benefit DoubleClick here: 1) the agreement between DoubleClick
and AltaVista is for 3 more years and 2)
CMGI has a stable of startups that may use DoubleClick if they are deployed on
AltaVista.
So in the weird science of the Web DoubleClick may benefit from the CMGI deal with
AltaVista. 3 years is a long time on the
Internet also.
Next Infoseek (NASDAQ:SEEK - news) . It's housecleaning time here. Go.com is a
better brand, bring on board some
marketing guru to head this one up, same as Steve Case (of Proctor & Gamble fame
before AOL) heads up AOL. It's a
marketing war, not technology war. Go.com needs a heavy injection of "fun," the kind
that drives Yahoo, eBay and others.
Still, I have to believe that SEEK looks undervalued to the Mouseketeer potential. That
the long battle ahead is driven by TV
to Web and back. Something should happen in the Magic Kingdom.
AOL (NYSE:AOL - news) . Just sits there. At $106 per share and $114 billion market
cap. If AOL was sold in parts it could
fetch much more. Most users globally, most cash, most earnings, most well-known
brands.
I think the street waits on a cable deal to ignite the fire here. Go broadband via satellite
AND coaxial AND twisted pair on
DSL.
Let's see the 50 stocks in ISDEX since June 16:
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