<< Hot Stocks
Tue, 16 Feb 1999, 1:38pm EST
Prodigy Communications Shares Jump on Third Day of Trading
White Plains, New York, Feb. 16 (Bloomberg) -- Prodigy
Communications Corp., an Internet service provider, jumped as
much as 43 percent in its third day of trading as investors
thronged to the newest hot Internet stock.
Prodigy rose 12 3/16 to 47 5/8 in late morning trading of
6.94 million, making it the second most actively traded stock in
U.S. markets. Earlier, the shares touched 50 5/8. The shares have
more than tripled since the company sold 8 million shares at $15
each on Feb. 10. The stock began trading on Feb. 11. U.S. markets
were closed yesterday in observance of President's Day.
Prodigy had languished for years after its strong start in
the 1980s as competitors such as America Online Inc. emerged as
industry leaders. Yet, Prodigy's history has given it a well-
known brand name, which is attracting investors eager to place
bets on companies they expect will thrive as Internet usage
continues to boom.
The White Plains, New York-based company was founded in
1984 as one of the first private online services with backing
from CBS Corp., International Business Machines Corp. and Sears,
Roebuck & Co.
While America Online's subscriber base has surged to more
than 16 million, Prodigy has less than 700,000 customers. Prodigy
also faces competition from Internet access providers such as
AT&T Corp.'s WorldNet service, with 1.5 million subscribers, and
EarthLink Network Inc., with more than 1 million subscribers. >>
Gee, with nearly a third as many subs as PRGY, PCNTF ought to get at least a third of PRGY's market cap, eh? Especially condidering it's brand, growth metrics, and profitability.
Hmmm, that equal's ~$68/share.
|
