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Technology Stocks : Internet Stocks (How high will they fly?) -- Ignore unavailable to you. Want to Upgrade?

To: sandstuff who wrote (13)	4/7/1998 11:36:00 AM
From: Kat	Read Replies (1) \| Respond to of 44

This site is a great idea. Giving input from so many sites is the way to go. I'm long on all my web holdings, but of course keep a sharp eye on them. Long on USWB (website design), NTBK ( first pure play online banker), ICMT ( isp provider and web design (support from IBM) and in process of accumulating KTWO (advertising play ). Such an exciting field to be researching and investing in !!! Kat

To: sandstuff who wrote (13)	4/7/1998 8:58:00 PM
From: Nick	Respond to of 44

INSIGHT-Surging Internet stocks enter correction By Richard Melville NEW YORK, April 7 (Reuters) - Internet stocks have finally paused in their scorching rally and, true to form, are enduring a gut-wrenching correction from their peaks. After reaping gains of 50 percent or better just since the start of 1998, investors in stocks like Yahoo Inc. (YHOO - news) and Excite Inc. (XCIT - news) are getting a reminder that runaway stocks almost inevitably face the occasional free-fall. ''These stocks were almost going vertical. There wasn't much in the way of analytics going on, it was almost pure emotion,'' Piper Jaffray technical analyst Ed Nicoski said. When such powerful rallies enter correction phases, even briefly, he said, the move ''is almost always just as dramatic on the way down.'' The worst damage has been reserved for companies that offer search and other services for the Internet -- stocks that chartists say are riding a bubble that could burst at any time. Even so, analysts did not find evidence the end of the rally had arrived, despite sharp declines on Tuesday. In the session, Yahoo skidded 5-13/16 to 93-1/4, Excite tumbled 4-19/32 to 52-5/16, Lycos Inc. (LCOS - news) slid 4-7/32 to 53-11/16 and Infoseek Corp. (SEEK - news) dipped 31/32 to 19-7/8. Technicians said the losses, while sharp and severe, appeared to conform to a ''normal'' retreat pattern after a meteoric run. ''Believe it or not, this is a normal pullback,'' said Gary Kaltbaum, technical analyst at J.W. Charles. ''These companies may still go lower, but the bubble hasn't burst yet.'' Yahoo, for example, reached 103-7/8 on April 2, a full 50 percent higher than the 69-1/4 closing price on December 31. Infoseek, until lately a troubled stock that had wallowed below its initial public offering price, surged 91 percent to 20-1/2 over the same period, before retreating. In the last two days, the American Stock Exchange's Internet index (^IIX) has fallen nearly four percent to 305.48 from 317.84, but is still 17 percent above its 1997 year-end level of 260.25. When the surge finally meets a real end, Kaltbaum said, the market ''will cut these things in half. You'll see Yahoo and America Online (AOL - news) down by 12 or 14 in a day.'' Until that day, investors should expect more gut-wrenching activity, analysts said, adding there is little way, given the volatility of the stocks, to guess at the duration of a downturn or to pick the next top. ''It's very difficult to pick targets or time frames for these stocks,'' said Jonathan Dodd, technical analyst at Morgan Stanley Dean Witter. ''It's the nature of these stocks that they can correct like this and then go right on to new highs.''