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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: hash who wrote (7599)	6/18/1999 9:29:00 AM
From: Adam S	Respond to of 28311

Here's the text from that analysis: Go2Net, Inc.(GNET) closed up nearly 4 percent at $119 1/2 in today's trading session on volume of 1.2 million shares. The company which offers a network of technology and community driven Web sites has been drifting down steadily since its 52-week high of $199 in April. The stock dropped to $89 on June 1 as a result of inflation fears in the past month, sending the stock reeling 55 percent off its high in just over a month. GNET has since recovered 35 percent of its value with a superb 16% coming in the last two trading days. Even with GNET's recent success, there are three main factors which should help fuel a continued rally for the technology concern: 1.) The positive results of the May CPI data released yesterday relieved fears of inflation for the time being, leading investors back into the high growth Internet stocks. GNET surged $11 3/4 higher in yesterday's trading session. 2.) The company announced today that its shareholders approved elements of an investment by Paul Allen and his investment organization, Vulcan Ventures, Inc., that will bring Mr. Allen's direct cash investment in the company to $300 million. In addition, the shareholders also approved Allen's purchase of approximately 1.4 million shares of Go2Net's common stock from company directors for approximately $126 million cash which was referenced in the March 15 investment agreement. The transactions are effective immediately and bring Mr. Allen's ownership stake in Go2Net to approximately 34 percent for a total investment of $426 million. 3.) Go2Net's shareholders today also approved an amendment to the company's Restated Certificate of Incorporation, increasing the number of the company's authorized shares of stock from 50,000,000 to 500,000,0000. This will facilitate GNET's continued use of its common stock as currency for growth and acquisitions while accommodating the company's 2-for-1 stock dividend, which will be paid to shareholders on June 24 and will be reflected on Go2Net's Nasdaq price at the market open on June 25. These points, coupled with GNET's positive technical outlook indicate a possible major bullish trend developing. GNET's chart shows the shorter-term moving average crossing above the longer term moving average, indicating an upward push in the future. Additionally, the Stochastics indicator registered a Buy signal on June the 9th when the stock broke out of oversold territory. The green arrow in the chart below shows the breakout and subsequent Buy signal. The stochastics indicator is a very successful one for this particular stock. Stochastics Indicator for GNET Showing A Buy Signal Despite its bright future outlook, weak trading volume remains a concern for technicians. This scarcity of strong volume may cause GNET to test its support of $107 in the next several weeks before resuming its upward momentum. However, if volume picks up for the "split-play" taking effect on June 25, we could see GNET pierce through its next point of resistance ($130) within the next week. As long as inflation fears are kept under wraps, all the signs point to a continued positive run for GNET.