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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (13641)	8/31/1998 1:22:00 PM
From: Jenna	Read Replies (3) \| Respond to of 120523

Internet Stocks Among Biggest Casualties Of Market Downturn By Joelle Tessler, Staff Reporter NEW YORK -(Dow Jones)- Internet stocks are emerging as some of the biggest casualtiesof the widespread panic that has swept the stock market over the past three trading days. Web stocks, which largely managed to hold their ground as the rest of the marketswooned throughout much of August, fell sharply Monday for the third straight tradingday. Early Monday afternoon, the NYSE-listed shares of America Online Inc. (AOL), the industry bellwether, were off $10, or 10%, at $86.25. Volume totaled more than eight million shares The stock closed at $100.688 last Wednesday. Yahoo! Inc.'s (YHOO) shares were down $10.188, or 12%, in Nasdaq trading at $72.875. Volume totaled More than five million shares. The stock closed at $96.875 Wednesday. Excite Inc.'s (XCIT) shares were down $4.188, or 14%, at $26.375 in Nasdaq trading. Volume was more than 2.4 million shares. The stock closed at $39.375 Wednesday. Lycos Inc.'s (LCOS) shares were off $4.50, or 33%, at 25.50 in Nasdaq trading. Volume stood at nearly 4.6 million shares. The shares closed at $38 Wednesday. Amazon.com Inc.'s (AMZN) stock was off $17.141, or 16%, at $89.50 in Nasdaq trading. Volume totaled more than five million shares. The stock closed at $127.25 Wednesday. The group had moved sideways through much of the summer as investors sought out sectors with high growth potential and little exposure to overseas markets. It has been particularly hard hit, however, by panic selling that has dragged down all the major market indexes since last Thursday. This is partly because Web stock investors tend to be quite emotional and are therefore that way to the economic turmoil overseas, said Robert Herwick, president of Herwick Capital Management. "The market sentiment has turned so negative that it has swept up the Web stocks," Herwick added. "The panic button just went off," agreed William Blair analyst Abhishek Gami, "and a lot of stock prices were cut right in half." Gami added that Web stocks are also being pummeled because many had run up so sharply throughout earlier this year. "There is evidence that those that perhaps performed the best have given up the most," he said. The analyst stressed, however, that little has changed fundamentally for most Internet companies and that the group overall is "much further removed" than most other technology sectors from the currency meltdowns in Asia and Russia's economic collapse. I take this to mean that in a recovery the internets will explode upwards, even if temporarily.. It would be enough for 10% plus intraday trade and 20% on a swing trade (2-5 days). The internets have not bottomed yet though, I wouldn't consider going long on any of them overnight at this juncture.