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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (719)	7/6/1999 10:55:00 AM
From: William F. Wager, Jr.	Read Replies (2) \| Respond to of 3664

NEW YORK (Dow Jones)--Micro-cap funds took center stage for the week ended Thursday. Interest rate news lifted the entire market while the Russell 2000 reconstituted, spotlighting former micro-cap companies and sending newly minted mid caps on their way. That led to returns of nearly 13% for both the Van Wagoner (VWMCX) and the Blackrock (BRMBX) micro-cap funds. The science and technology sector, after a second-quarter slump, shot back to No. 1 for the week. Blackrock rode it s 55% weighting in tech to become the week's No. 2 fund. "One of the reasons [tech] stocks came down in the first place was because people thought the P/Es were too high for a high interest rate environment," says Mike Carey, senior analyst for Blackrock. "Now that people are more comfortable about the interest rates, people are more comfortable with these [tech] stocks." Small- and micro-cap tech darlings Emulex (EMLX) and Exodus Communications (EXDS) -- No. 1 holdings of Blackrock and Van Wagoner, respectively -- rose by 19.6% and 25.7%. Blackrock pulled in a 7% return on Wednesday alone. Is this going to last or are these guys just one-hit wonders on our B & W charts? "[The interest rate news] is obviously going to benefit the large-cap companies," admits Carey, "but I think there's a renewed interest in the small and micro caps as well. And it doesn't take much money to flow into these funds to affect them." Ah, that micro-cap optimism!