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Technology Stocks : ADSP - Ariel -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (1902)	11/28/1999 10:38:00 PM
From: StockDung	Respond to of 2263

Dow Jones story on Ariel is just too funny. Just out!! By Danielle Sessa The tradition of curious stock movement on the day after Thanksgiving continued Friday. Ariel Corp., a computer networking firm, skyrocketed and was the most actively traded stock on the Nasdaq Stock Market. Shares of Ashford.com, another one of the day's most heavily traded stocks, shot up 76% on 11 times its average daily volume. The reasons for the two unrelated moves? In Ariel's case, an apparent misunderstanding by computer-enhanced stock speculators. In Ashford.com's case, it was a pat on the back from the firm's Wall Street underwriter, something that usually wouldn't cause such a big move. The Friday after Thanksgiving has normally been one of the slowest days of the year for the stock markets. But that all changed last year, when fast-moving "day traders" dominated the trading session and whipped the market into a frenzy over some Internet stocks. The low liquidity, due to the absence of most institutional investors, helped to fuel rallies in some then little-known stocks. The intense interest in Ariel on Friday was related to the perception that companies in the area of wireless Internet connections will benefit from the possibility of AT&T doing an initial public offering of its wireless unit. One problem: Ariel isn't in that business. It provides "remote access" products -- but not wireless equipment -- that allow computers to access other networks or computers. Regardless, Ariel proved to be popular with investors. Shares of the Cranbury, N.J., company rose $26.25 to $37 by the early, post-holiday 1 p.m. EST close on Nasdaq, with 50 million shares changing hands, compared with its average daily volume of 1.3 million shares. Ariel itself acknowledged the activity in its stock but said it "has no pending announcements that explain this level of activity." Meanwhile, a positive mention by Goldman Sachs electronic-retailing analyst Anthony Noto spurred the big move of Ashford.com. The Houston company rose $10.75 to $24.875 in 1.p.m. trading on Nasdaq. Mr. Noto, who appeared on CNBC-TV, named the online luxury-goods retailer one of the e-tailers that is best positioned for a lucrative holiday shopping season. He cited the site's marketing campaign, customized features and customer service as reasons why it will be a "poster child for success" this Christmas season. Goldman also served as an underwriter for Ashford.com's initial public offering in September. Shares were hovering around its offer price of $13, until its rapid ascent on Friday. Underwriters, of course, will typically endorse a stock they brought to market, after the usual waiting period following an IPO. But typically investors are savvy enough to know the endorsement comes from a friendly source. Mr. Noto didn't mention Goldman's connection with Ashford.com on television, because he wasn't asked. But he says, "We underwrite them because we like them." --- Other Market Activity Small-capitalization stocks rose slightly during the abbreviated trading session, while the overall Nasdaq market edged up to another record close. The Russell 2000 rose 3.01 points to 458.94, still well below its April 1998 record. The Nasdaq Composite Index increased 27.31 points to 3447.81, topping Wednesday's record close. Technology stocks continued the rebound they began Wednesday. Shares of companies that do business in the wireless industry rose sharply after The Wall Street Journal reported Friday that AT&T is considering an initial public offering of a tracking stock for its wireless unit. The subsequent explosion in shares of wireless-equipme providers Telular and Emcee Broadcast Products was attributed to day traders' excitement over the AT&T news. Telular rose 8 27/32 to 10 7/8, beating a year high of 7 3/4 set on Dec. 1, 1998. Emcee increased 7 1/16 to 9 11/16, beating a high of 6 1/2 set on Sept. 14. The Nasdaq Composite rose 78.57 points for the week, up 2.3%, while the Russell fell 2.33 points, or 0.5%. "Tech stocks and telecom stocks keep lifting the Nasdaq to new record highs," said Alan Ackerman, senior vice president at Fahnestock & Co. "Investors, by and large, see December as a month of continuing upside for most of the averages." Overall, five of the eight Nasdaq industry indexes posted gains, with transportation, insurance and banking sectors showing declines. -- Lynn Cowan (END) DOW JONES NEWS 11-28-99 09:53 PM- - 09 53 PM EST 11-28-99