Internet sector will rebound this week.
Net & growth confabs may boost Nets
Deutsche Banc Alex Brown and PaineWebber to host
By Bambi Francisco, CBS MarketWatch
Last Update: 9:47 PM ET Jun 6, 1999 See: Movers & Shakers
NEW YORK (CBS.MW) -- Investors may find their faded love for Internet stocks rekindled this week as Deutsche Banc Alex Brown and PaineWebber conferences, focusing on Web opportunities, could infuse confidence in the downtrodden cyber sector.
Beginning on Monday, Deutsche Banc Alex Brown kicks off its 1999 Media & Telecommunications Conference at the Pierre Hotel in Manhattan. The gathering will run until Wednesday, June 9.
Not too far from the Pierre, PaineWebber will hold its 3-day 10th Annual Growth & Technology Conference, which gets underway on Tuesday, June 8, at the Grand Hyatt Hotel in New New York City.
Kicking off both conferences with a lunchtime speech will be AT&T (T: news, msgs) Chief Executive Michael Armstrong, who will likely be besieged with questions regarding a federal judge's ruling on open-access, if he doesn't already address the issue in his prepared speech. See related story
Also scheduled to appear at Deutsche Banc Alex Brown are executives from: America Online (AOL: news, msgs), Yahoo (YHOO: news, msgs), Lycos [: lcos], and many niche content providers, such as MarketWatch.com (MKTW: news, msgs), the publisher of this site. Exodus Communications (EXDS: news, msgs), Verio (VRIO: news, msgs), Covad Communication Group (COVD: news, msgs) and other Internet infrastructure and enablers will present as well.
Among some companies attending PaineWebber's conference include: CDnow (CDNW: news, msgs), Infospace (INSP: news, msgs), Critical Path (CPTH: news, msgs), Autobytel.com (ABTL: news, msgs), and Network Solutions (NSOL: news, msgs). Some bigger tech players vying for Internet backbone dominance such as: IBM (IBM: news, msgs) and Sun Microsystems (SUNW: news, msgs) will also present.
CBS.MarketWatch.com will cover the conferences in real-time. Check the site's Renegade column for the latest coverage.
Event-driven Net stocks
The shindigs, exasperating as they may be, could be just the events to set the rallying Web wheels in motion if company executives succeed in selling their positive stories to the investment community.
Company announcements about partnerships or Web growth, such as Network Solutions' recent announcement that it has sold its 5 millionth domain name, may also help get investors re-excited about the explosive Net opportunity, particularly if enough companies make a strong case.
And the timing couldn't be more opportune.
The 15 Internet stocks, included in the Goldman Internet Index, have lost nearly $36 billion in stock market value since April 23, around the time when the slow water-torture-type sell-off in the Net group began. Some analysts have argued that the only reason negative sentiment engulfed the sector since first quarter results were released was the dearth of tangible news to fuel momentum. See Net stocks
Investing in a vacuum pushed other concerns -- higher interest rates, oversupply of Net IPOs and the increasingly competitive Net landscape -- to the forefront.
That's not to say those matters have gone away. But with prices down to attractive levels, say analysts -- a bit of confab-sunshine could go a long way.
At the very least, investors may get a heads-up on how companies have performed in the second quarter. Some Net firms will likely announce alliances and partnerships as well.
Bambi Francisco is Internet editor for CBS MarketWatch.
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