Another analyst's comment on internet stocks
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Street Life
Tuesday, March 10, 1998, 6:45 p.m.
A Ringing Rebound on Wall Street
By Andrew Serwer
Jackie Wilson kind of a day. You know: "Higher and
Higher!" A broad rally powered the market higher
on Tuesday. The Dow climbed 76 points, to 8643.
Another record! NASDAQ was up 23, to 1748. The
"InComMo" downgrades have come and now appear to
be gone!!! (Dust in the wind!) Also, you know when
the long bond drops below 6%, as it just did, it's
like a big bell tolling on Wall Street: "Buy
Stocks! Buy Stocks!" Here's what we're following
today:
MARKETS.... Don't get in the way of this freight
train! It's awesome, baby!!!!!!! A lot of nice
moves by big stocks. Almost everything came back
today. Here are some of the hot tamales today!
Travelers up $2.25, to $57.75. Merck was up over
$2, to just under $131, a new all-time high. Alcoa
climbed almost $2, to $73-plus. As for the techs,
they came back a bit: IBM up $1.50, to $97.50.
Dell was up $1.75, to just under $65. Intel was up
a half, to $75.50. Cisco--it bought NetSpeed for
$236 million of stock--was up a smidge. Compaq was
down slightly, though. But check out the industry
indexes: The bank (stock) index, the retail index,
the drug index, the consumer index, are ALL AT
ALL-TIME HIGHS!!! Amazing. Scary.
INTERNET STOCKS, PART DEUX OF TROIS.... These
stocks were off today (except for Excite, which
was up $2, to $57). Taking a breather. A Salomon
analyst attributed their recent run to the fact
that these stocks have very little liquidity, so
when just a trickle flows from Compaq to Amazon,
it REALLY makes Amazon move. This guy from Solly
said the recent moves were not based in
fundamentals. Well, we'll see. Tomorrow or
Thursday, I'll continue this discussion. To wit:
Are all Internet stocks the same, i.e., do you buy
all of them, or can you really pick 'em? Also, why
exactly are these stocks moving up? I have my own
ideas, and Mary Meeker of Morgan Stanley will
weigh in, too!
GOIN' PUBLIC.... Bunch of hot IPOs--actually some
pretty good performers--today. My fave is
Championship Auto Racing Team, which was up $3.50,
to $19.50 in its first day of trading. The
company's 4.7 million-share IPO, led by Jefferies,
was priced yesterday at the top of its expected
range. This is the organizing body of some
car-racing league. Could you explain to me why
anyone would buy this? Anyone?!?!? In their right
mind, I mean.
Loose Change
Apologies for Gillette yesterday. I got the stock
price wrong. Sorry guys, stock is NOT at $133.
YET!!!.... Sun Microsystems was up nearly $5, to
around $42.50, after Salomon Smith Barney analyst
John Jones upgraded it. Yesterday, McNealy Co.
LOST $5, to $37.75.... MCI was down following
reports that the Justice Department is widening
its investigation of WorldCom's acquisition of the
company. WorldCom was down, too.... Heinz reported
some weak numbers.... Got my first piece of
research from CIBC Oppenheimer today. Canadians
buying a good old 'murcan company like that. Hey,
I can handle it!.... ATT got a big contract from
Citicorp today.... Ralph Acampora of the Pru is
now calling for the market to hit 10,000 by the
end of year on CNBC!!! Go Ralphie baby!....
Consolidated Cigar down $3, to $21! Wow! Ronald
Cigar Perelman takes it on the chin here. Just
another preannouncement.... Datum was down too, on
some bad numbers. Suharto was reelected. Horaay!!
Who the hell is Steve Hanke anyway????....
Fifty-eight years ago today, Chuck Norris was born
in Ryan, Okla. Here are my Sweet 16: Kansas, Miss,
Clemson, Purdue, Duke, Syracuse, Michigan,
Kentucky, UNC, Princeton, South Carolina, UCONN,
Arizona, Maryland, Utah, Cincinnati.... All
subject to change!!! (Hey, I have until Thursday
noon.) More tomorrow. I know we should have it
posted right. You tell 'em!
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