Saturday, April 10, 1999
Internet stocks take a breather after red-hot week
Bid.com sets the pace
Garry Marr
Financial Post, with files from Dow Jones
A little air might have escaped from the Internet balloon yesterday but stocks were a long way from being grounded. The week was nothing short of phenomenal for Internet plays on the Toronto Stock Exchange and, to a lesser extent, in Vancouver and Alberta.
Leading the charge was "stalwart" Bid. Com International Inc. The stock (BII/TSE) closed down $2.90 to $27.80 yesterday, but touched a 52-week high of $32.35 during the week and still managed an 93% gain for the past five sessions. It was off as much as 26.5% on the day, before recovering.
"It's the stalwart or the flagship Internet company," said James Niosi, of Charles Schwab Canada, acknowledging the stock started trading in heavy volumes only late last year. Around Oct. 19, it was still trading as low as 56¢ a share.
"The same type of trading patterns that are evident in the U.S. are coming to Canada, and so is the volatility," said Mr. Niosi, adding he sees a lot of day traders and pro traders helping to push the stock.
This week American Gem Corp. (GEM/TSE) was the heaviest traded stock, coming out of nowhere with almost 158 million shares changing hands after the company announced it was going to start selling its sapphires online. The stock rose 68% on Thursday and at one point in the week touched $1, but by yesterday's close it was down 14¢ to 65¢.
It wasn't the only stock feeling the pinch.
- Versus Technologies Inc. (V/TSE) fell $2.50 to $23.25 after gaining 32.7% on Thursday and reaching a 52-week high of $28. Versus said yesterday underwriters for its initial public offering have exercised their overallotment option for 610,125 common shares, for gross proceeds of $7-million. Shares were sold at $11.50 in the IPO.
- CryptoLogic Inc. (CRY/TSE) fell 75¢ to $23.30 after touching as high as $28.50 this week.
- Dion Entertainment Corp. (DIO/ TSE) fell 10¢ to $3.40 but closed as high as $4.90 on Monday.
- Dejour Mines Ltd. (DEJ/TSE) fell 5¢ to 71¢ but closed as high as 82¢ on Monday.
On the Alberta exchange, which is gradually showing more of a technology bent, Internet stocks also took a hit.
Andrew Osmak, a retail broker with CIBC Wood Gundy Securities Inc., said the trading this week may be just the beginning. "Fasten your seatbelts, there is more to come. Anybody who adds a dot-com to their name is in the spotlight immediately. But you have to go through these stocks with a fine-tooth comb."
As for Bid.Com, Mr. Osmak said "shareholder enthusiasm" has helped to propel the stock. "I just wouldn't want to be the last one standing when the music stops."
nationalpost.com.
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