LINUX software fever!!!!
ADSP
APLX
COR.TO
MSFT
RHAT
SFTW
UNFY
6 9/16
18 5/8
9.65
92 1/4
75 9/16
3 5/8
14 1/4
+4 3/8
+2 1/8
+1.35
-1
-4 1/4
+13/16
+2 1/2
delayed 20 mins - disclaimer
Monday August 30, 6:07 pm Eastern Time
Linux fever propels small software firms higher
(new throughout, adds byline)
By Eric Auchard
NEW YORK, Aug 30 (Reuters) - Shares of Linux software makers, led by Applix Inc. (Nasdaq:APLX - news), rallied a second straight day on Monday amid speculation these companies could become major players in the emerging Internet software market.
The stock of Westboro, Mass.-based Applix topped the most active issues on the Nasdaq market as it surged to a 52-week high of 24-11/16, up nearly 50 percent from Friday, before falling back to close at 18-5/8, up 2-1/8 on the day.
Linux fever also gripped shares of Ottowa-based Corel Corp. (Toronto:COR.TO - news), which hit a new record of C$10.25, up C$1.75 Monday on the Toronto Stock Exchange, before they settled back in late trading to C$9.65, a 16 percent gain on the day.
Ariel Corp. (Nasdaq:ADSP - news), a Cranbury, N.J.-based supplier of Linux-based access devices for Internet service providers which last month, leaped 4-3/8 to 6-9/16. San Jose, Calif.-based Unify Corp. (Nasdaq:UNFY - news) jumped 2-1/2 to 14-1/4, while Enlighten Software (Nasdaq:SFTW - news) added 13/16 of a point to trade at 3-5/8.
It was the second day of gains for companies seen as potential beneficiaries of the growing interest in Linux software, an alternative to Microsoft Corp.'s (Nasdaq:MSFT - news) Windows software that has won a cult-like devotion among Internet software developers. On Friday, Applix rose $6.50 on Friday to close at $16.50. Corel shares rose nearly 24 percent to C$8.30 on the Toronto market.
Investors are hunting for ways to cash in on the performance of Red Hat Inc. (Nasdaq:RHAT - news), which has risen 450 percent from its Aug. 11 initial public stock offering. Amid rising interest in potential competitors, however, Red Hat stock closed down 4-1/4 to 75-9/16 in light trading on Nasdaq.
Online chat boards were busy Monday with discussion of the next Linux stocks likely to rise. Writers used screen names like PUMPnDUMPdotcom, poker_player29 and buyhighsellhigherdoday.
But Rick Berry, an analyst with brokerage J.P. Turner & Co. said that while he rates Applix stock a ''trading buy'' for clients, he saw the recent share price gains as temporary.
''These moves are not sustainable,'' Berry said, predicting that the stock will likely fall back to a range around $12 and $14 per share in coming days.
Applix spokeswoman Nora McGuinness said comments on online chat boards touting the stock focused on potential partnerships the company could reach related to its Linux technical support site, which attracts about 3,500 hits by Web users a day.
On July 15, Applix announced SmartBeak.com, a technical support Web site for Linux software developers. She said the company has been in talks with potential strategic partners related to the site, but that no deals have been reached.
Dennis Schneider, Ariel senior vice president of worldwide marketing, said there has been no recent business developments to explain the stock's move, but that he believed the share gains were a delayed recognition of the company's strategy.
''This is a delayed recognition of the correctness of Ariel's strategy in the Internet market,'' Schneider said.
Ariel, which in the past year has seen its traditional standalone remote access network equipment business dry up, has repositioned itself as an Internet software supplier at the crossroads of the ISP and Linux markets, he said.
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More Quotes
and News: Applix Inc (Nasdaq:APLX - news)
Ariel Corp (Nasdaq:ADSP - news)
Corel Corp (Toronto:COR.TO - news)
Enlighten Software Solutions Inc (Nasdaq:SFTW - news)
Microsoft Corp (Nasdaq:MSFT - news)
Red Hat Inc (Nasdaq:RHAT - news)
Unify Corp (Nasdaq:UNFY - news)
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