(Wed 21st, April) Yesterday, the stock market reversed its previous downward move; the Dow closed up about 8+ points and the Nasdaq rebound from its previous sell off to close at about 64+ points. Overseas markets are trading mostly on the up side. Today, the US stock market looks like it will have a flat to a down opening.
The internet leaders had their revenge on the short sellers, and investors scooped up the internet bargains like they were at a fire sale. RNWK got a huge lift from a major brokerage house while CMGI had some problems staying in a positive region because of mentions of the Lycos/USAI deal on cnbc. IUSAB blew away its quarterly earnings; the company posted 13 cents per share versus an expected 6 cents for the quarter. IUSAB's internet division made around $9 million for 1998. The company said that it has achieved that amount without having made any dedicated investments in its online business. And, XMCM has reported record first quarter revenues.
Previous mentioned LPGLY has changed its symbol to LPGL. It recently took an equity stake in Transmedia Communication, a leading provider of a new generation of telecommunications equipment that integrates carriers' Internet packet and traditional telephony networks. It also took an equity stake in Convergent Technologies and Thru-Put Technologies through its venture capital firm, Berkeley International Capital. Convergent Technologies manufactures and markets enterprise storage systems and software. Also, AXC's Tvontheweb.com will be broadcasting live events of the NAB from the NAB onto the internet.
And, now you can get paid for surfing the web. You can even get PAID when your friends are surfing the Web. Sign up (less than a minute - NO SURVEY) and then go tell your friends. Hit the link now.
(Tue 20th April) As I said last week Wednesday, if you can't stand the fire then get out of the kitchen. Of course, I did not know at that time it would get so hot; nevertheless, it is kind of late right right now. Yesterday, the Dow made a flip-flop move and it dived from over a 200+ points to close down about -53 points while the Nasdaq took most of the beating to close down about -138 points. Overseas markets are following in the steps of the US stock market and stocks are swimming in a sea of red. Today, the broader market will see a bounce after yesterday's huge downfall; the opening is expected to be positive.
Wow! Yesterday will be a day to remember in the internet arena; every internet high flying stock price was chopped. However, while people were panic selling, the level headed investors were looking for opportunities and were buying. Any internet stock with a high pe was whacked up over the head due to panic selling from the weak hands. And, with the advent of free personal computers coming to an internet site near you, more internet users will come aboard; thus , strengthening the internet sector. So the box makers' loss will be the internet gains. Also, check out FMDAY, another one from the Brits.
REL is at present a value play; also, it is another back door play to the internet. It owns about 2.5 million shares of Streamline.com which recently filed for an ipo offering. It also has two other equity stakes which might be a possible spin-off. CyberComp sells insurance over the internet and RCG information technology is another play on the internet. REL also has around 8 million shares in SBL, 8.8 million shares in LFG, and 6.5 million shares in ZNT. As usual, do your own due diligence as some figures were taken down in a rush to make this morning commentary.
(Mon, 19th April) Last Friday, the Dow continued its upward move while the Nasdaq continued reversing its numbers downward. Overseas markets are mostly trading up on the news that a major telecom company will merge with another one. Today, the opening of the US broader market looks like it will have a positive opening after the heads of CPQ rolled downhill over the weekend.
The internet continued last Friday to ride the waves of choppy waters. MODA's Styleclick.com is planning to provide its service on the internet to the big portals. Styleclick.com provides searches of clothes on the internet; the company says that its search engine capabilities will extend because of its recent round of financing. This money will be mostly used to launch a massive ad campaign to build up its web brand & ramp up traffic numbers. The company brings more than 100 fashion vendors together under one roof to allow a side by side comparison of items from multiple search features. WCAP and INTC were just involved in some of the financing. The site will take 10 to 30% from transactions of vendors online. Also, VCST ships first RealVideo G2 hardware encoder for internet streaming video applications.
PXP owns 26% of launchmedia, a soon to be released ipo on the market. XTON begins trading as ELOT today. Tvontheweb.com teams up with Melita Cable of Malta to open an european video and web production facility operation, "tvontheweb-europe.com". Melita Cable is 50% owned by UPCOY and AXC has an equity stake in tvontheweb.com And, SDTI was upgraded by Alex Brown and Prudential after it brought in blow out earnings. Also, (RAMP Networks) a provider of shared internet access solutions for the small office market has filed to go public. LPGLY has about 2.5 million shares in the company, and this is just one of the several internet interests in its portfolio.
(Fri, 16th April) Yesterday, the broader market made a turn around; the Dow closed up about +52 points and the Nasdaq closed up about +14 points. Overseas markets are mixed today after the US market had some see-saw moves. This morning, the market looks like it will have a flat to up opening.
Yesterday was just another very volatile day in the internet patch; however, the internet stocks are expected to lead the techs out of the doldrums. In a market's flip-flop day, it has been my experience that while everyone was crying, it was a good time to buy. FBG launched the 1st public online investment bank, and online brokerage services and research investors will participate in future ipos that the company will be involved in as an underwriter. HLR internet properties have been disclosed and published by Merrill Lynch through a paper entitled, "growing visibility of internet assets" according to some investors. It has a huge outstanding number of shares unlike the other high flying internet holding companies which have been previously mentioned. And, can you say ipo for tvontheweb.com. It seems that the company is on its way to an ipo. Tvontheweb.com, a holding of AXC, has tapped a senior executive from Merv Griffin Productions to serve as its president and co-ceo. This signals another sign of ipo intentions by the online broadcast/narrowcast internet company.
RRRR has signed an agreement to receive $75 million as an investment. It has changed its business strategy to become an internet solutions provider to emulate the successes of other venture capital firms. Wavo and GIC announced a plan to provide digital television information services based on Wavo's WaveTop service and network. Also, WGAT which was first mentioned as a holding equity stake of WCAP and BGF, came public at a fire sale price yesterday because of the internet/tech down market. Nevertheless, the ceo of WGAT was on cnbc this morning to highlight the features of this internet service. Also, can anyone beat this internet offer by WGAT of unlimited high speed access for between $7.00 and $12.00. per month through your cable provider. All you need to do is ask your cable provider to provide the WGAT service.
(Thur, 15th April) Yesterday was certainly an unpredictable day in the stock market and things sure did turn upside down when you least expected; the Dow closed up about +16 points and the Nasdaq closed down -76 points. Overseas markets are mixed mostly on the green side. The broader market is looking to open on a upward mode after the tech and internet wreck yesterday.
Yesterday was not a day for the weak of heart in the internet arena. The weak hands folded and the shorts fell for the fake out but if the fire is too hot, then obviously one should stay out of the kitchen. In a few days, yesterday's downward moves will be a non-event; no one will remember the details, except to say that it was a hugh fire sale. It is the internet, it goes up real fast and it comes down real fast, but in the long term, it is the internet which will be the leader in percentage gainers. Remember XTON ( which was first mentioned at a couple dollars) with its news of a spin-off of its elottery entity, well it hit over 10 yesterday.
And ELCO which was first mentioned at 2 7/8 was selected by CBS to use its Pecom's procurement manager automated procurement system as its automated procurement solution. CBS also reserved the right to expand the use to other areas of CBS which includes recommending the system to its network and radio affiliates across the nation. CBS also says it will announce an internet event soon. Also, AXC and HWP have collaborated to design a fully integrated video server archive. The new rigorously tested video server archives are available now. This is another area which AXC is involved with besides being an internet holding company.
(Wed, 14th April) Yesterday, the Dow held its own and closed up about +55 points and the Nasdaq closed down about -15 points. Overseas markets are trading down on fears that Wall Street will see a down day; however, the opening of the broader market looks like it will now have a positive opening. And, with the excitment in the brokerage area, anything can happen in the general market today.
The internet has some new high fliers in the online banking industry. I have checked the archives and I found that the commentary mentioned two stocks (SONE and TBFC at around 20 and both are now trading for more that $100.00 ) on Wed 23rd of Dec, and earlier this month another one was mentioned so if readers were paying any attention, they should have at least one before the sector flew. I have a concern on these banking high fliers because most of the banks in the USA have an online banking entity; however, if your bank does not have one by now it is certainly doing business in the stone age. Both WFC and KEY are signing up online customers in droves and SVRN has just set up its online ecommerce banking outlet in a new strategy for the internet.
Recently ipoed wholesaler of cds, VMIX is also a wholesaler to almost all of the internet high fliers which offers music accessories. BKFR launches its internet online banking product. And both DEMP and PMOR are in the online pharmacy business. DEMP is licensed to sell online prescription drugs in 49 states through its online drugstore, drugemporium.com. I don't like the prices for its general products though because dollarstore.com sells similar products for a dollar on the internet. And, AXC is finally getting some attention, it will also be featuring its products and associates at the NAB.
(Tue, 13th April) As I said yesterday, the huge downward move by the S&P Futures was all to do about nothing. Yesterday, the Dow blasted its way upward to make a new high; it closed up about +165 points and the Nasdaq closed up about 5 points. Overseas markets are trading up after the US big rally yesterday. The stock market looks like it will open on the flat to up side.
The internet had another big day yesterday. IIXL will have an ipo soon in the market. It has 34 web, video and interactive media companies and 88% of Consumer Financial Network. AXC appoints a senior executive to head its New York internet video programming concern. He will be responsible for establishing a new group based on internet video channels to be produced in NY, and which will compliment tvontheweb.com. RAND, a small venture firm makes financing to two companies. BOGN has an efax entity; it is a possible spin-off play of its 100 % stake in Digitronic.
SDTI is a back door play on VRSN; it has over 2 million shares of the high flier. It also has minority stakes in C2Net, Finjan Software, nCipher, Trintech and VpNet. As usual do your own dd. With venture capital firms on a very hot paced move of late, it is becoming very hard to find any hidden cheap gems in that sector. Firms like CMGI, WCAP, PWCC and SFE are now well known but in comes an unknown undervalued player in the same area. LPGLY is a $20. play on CMGI, WCAP, SFE, etc all wrapped up in one. It also pays over .90 cents a share in dividends. One of its holdings is AOL; I do not know how much shares at this time but according to the head man of the company, it has several internet interests. LPGLY also has 1.3 million shares of NETG and 2.6 million shares of (NETP), a soon to be released ipo in the market. No, I did not forget AXC and IUSAB which are different kinds of plays; some just take longer than others.
(Mon, 12th April) Last Friday, the Dow closed down some -23 points and the Nasdaq closed up about +19 points. Overseas markets are trading down because of the earnings warnings coming from CPQ. The broader market is looking to have a down opening this morning, and it is expected that there would be some blood shedding in the stock market today.
Today will be a buying opportunity in the internet sector, I have seen this played out so many times that I have come to the conclusion it is all to do about nothing for the internet sector. XMCM is looking to be a stand out in this morning's massacre, talk is around of a possible buyout, etc. It just recently raised about 180 million dollars and it has about 7 million members in its community base. WCAP buys shares in MODA through a financing investment for the company to raise 8+ million dollars. INTC also has spent 5 million dollars to take an equity investment in MODA. The company develops, markets and supports internet sites in internet enable applications and software products based on its own proprietary technology.
And, BGF made the Business week issue of 4/19/99. The magazine has a readership of some 900,000. The article notes that its Xl Ventures unit owns 1.8 million of TFSM, stake in Andromedia, MINE, WGAT, NuTeL Communications. Investors of INDI says that the company owns 250,000 shares of Wit Capital at $1 a share. The company will soon go public and I wonder what else does INDI have a stake in. JNNE (a bb stock) is hot about its internet Kiosk which will be placed in hotels, etc. Is USIX another DRIV but for internet companies? TVontheWeb.com head says that the company continues to get investments and that he is considering an Ipo. Also the production subsidiary of tvontheweb.com, gardy-mcgrath.com, offers multimedia services, video conferencing, internet services, etc. AXC has holding positions in both tvontheweb.com and aentv.com.
(Fri, 9th April) The broader market saw another rally yesterday; the Dow made a new high and closed up about +112 and the Nasdaq closed up about + 28 points. Overseas markets are on an upward trend in this morning's trading dispute the rumor that Russia might send its own troops into the Kosovo conflict. The US broader market is looking for a flat opening this morning and some profit taking is expected after achieving hugh gains yesterday.
The internet high fliers continue to tear up the market. TGLO is giving a 2 for 1 stock split to its shareholders; it closed at about 59+ yesterday. BRKT is crying foul with its Interspeed product. The company says that the market is not recognizing its value. Its product is being compared to TUTS high speed offering and spin-off talk is in the air. The dot in dot com is beginning today with a new split price. It is still one of the most undervalued blue chip stock in the Nasdaq, and the market is just beginning to recognized SUNW as an internet stock. Most of the internet uses its servers and its Java software is used by just about everyone on the internet. Its last year's revenue was well over 10 billion dollars and going forward, its future looks very bright.
DELL and IUSAB signs multi-year agreement to license the infousa business database of its 10 million US business registry; thus, giving IUSAB some kind of respect in the market. INSGY's Java technology for Windows CE based embedded devices is exciting shareholders because the technology allows users to enjoy the benefits of the Java technology and its support of the internet. UPCOY, a recent entry to the ipo market, has an agreement to buy Time Warner 's Cable France with its over 350,000 subscribers under franchise. UPCOY has internet , telephony as well as cable tv interests. It is looked at as the ATHM of Europe and this purchase will give it an even more hugh customer base to extend its business. And, spin-off talk is in the air with DIS; talk is that DIS wants to spin-off its internet properties.
(Thur, 8th April) The market reversed its trends yesterday; the Dow closed up about +121 points and the Nasdaq closed down about -18 points. Overseas markets are trading mostly up. The broader market is looking for an early rally at the opening this morning because of a small rally in the S&P Futures.
The internet high fliers came in mixed yesterday. YHOO, a major internet bell weather, was down yesterday but it is going to rally this morning because it beat both its expected earnings and the whisper number. AXC has redefined and restructured itself as an internet holding company some what like that of WCAP, CMGI, etc. With its holdings in the internet narrowcaster/broadcaster companies like tvontheweb.com and Aentv.com, look for AXC to make some type of headway in the form of an ipo soon; especially, with the market hot for streaming broadcasting media internet companies. Another internet video streamer IATV, first mentioned on Feb 1st, is making hugh upward moves.
MBTI, a bb stock, with its own auction site is looking to dominate the online agricultural market. It is saying that it is the EBAY of agriculture on the internet. Its sales have increased over 200% year over year. MMAC (VCST) sells the video equipment for the streaming internet capabilities. It recently got a 1 million dollar contract and has refocused its business towards the internet video sector. And, IUSAB is starting to get some market attention. People are taking notice that is it very cheap relative to its peers and there is some talk on the street of a spin-off of the internet properties. It also has a streaming video site where it provides proprietary video content. Also, ELCO has gotten an analyst rating from a positive research report.
(Wed, 7th April) Yesterday, the stock market saw a bit of a profit taking which was somewhat expected; the Dow closed down about -43 points and the Nasdaq closed up about +3 points. Overseas markets are on a tear after starting their own rally. Today, the US broader market is expected to open up, and investors are looking for a rally at the opening this morning.
The internet high fliers traded mixed yesterday. RNWK, first mentioned at around 40, soared to new highs again. It is trying to reach a 250 target set by an analyst. Plus, GBIX rose over 10 points from the current proposal to get into bed with RNWK. One of the biggest losers, MINE, quiet period will be over soon; hopefully, that will help the bleeding of the stock price. And, ATBL said that it will offer internet online banking. This move to the internet will become operational by late summer so there is ample time to jump in and out of the stock if one is trading. Also, AMZN and CDNW will have new competition in the music online business from VO, et al.
BETM has entered the online gaming sector of gambling. Yesterday, TUNE received a major proposal from LMG.a. The company is offering to contribute all of its internet assets in exchange for newly issued shares of Tci, plus its equity investments held in IVIL, SPLN, Drugstore.com, etc. This drove the stock price of TUNE to gain over 200 % in yesterday's day trading; however, do your own dd before jumping in since it already had such a huge run up already. Also, FLAS is in a deal with Lycos; hopefully, this will help PWCC which has gotten a beaten since the ipo of FLAS where it has a minor stake.
(Tue, 6th April) The stock market was fired up with more positive activity yesterday. The Dow held the 10,000 mark and closed up about +174 points while the Nasdaq closed up about +66 points. Overseas markets has followed the US market and has also rallied up. Today, the broader market looks like it would have a flat to down opening. Some profit taking is expected in several of yesterday's high fliers.
The Future is the present ® The internet stocks gained a lot of respect yesterday and hinted a warning to those who are very short sighted. The shorts were repeatedly told not to short but without the short sellers, the market would not make huge gains like it made yesterday. MSPG is now being compared to AOL ,but it is looked at on a smaller scale. Its internet number looks good, it might be a possible take over target with its million+ customers, and it is in a serious growth sector of the internet.
Is BGF ridiculously undervalued? Its stake in MINE and TFSM is worth at least 150 million, its eps is lower to that of its peers in the same industry and its Worldgate and other stakes should fetch a handsome price, but it is still viewed in its old business even with a buy recommendation by Smith Barney. The brokerage house says that the price of BGF does not include its internet properties and it is being discounted by the market; plus, it reiterates its buy recommendation. And IUSAB says that its online database sales from infousa.com has doubled its revenues over the same period of time. Its internet marketing division, with an average of 1 million hits per day, revenues does not include licensing and advertising fees from its partnerships with other internet companies like YHOO, INSP, Netscape, etc.
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