To: Matt Brown who wrote (35071 ) 12/28/1998 5:41:00 PM From: Smiley Read Replies (1) | Respond to of 119973
This is the story on RMII from today's Wall Street Journal On-Line edition. The CEO can only say we're one helluva bargain. No other news. Why then do you folks think this thing is running up tomorrow? There is no new news. Article below: ' DENVER (Dow Jones)--Rocky Mountain Internet Inc. (RMII) shares surged Monday in their third straight day of gains, and one analyst attributed the rise to a positive move of Internet stocks following publicity of strong holiday electronic-commerce sales. The Denver provider of Internet access and services saw its shares up 77% recently on heavy Nasdaq volume following a 26% rise Thursday and a 10% increase on Wednesday. Earlier Monday, the shares traded at a 52-week high of 26 7/16, surpassing the previous high of 22 1/2 set July 7. Chief Executive Doug Hanson said he didn't know why the stock has taken off recently. "There's nothing going on that we haven't announced," he said. He said that maybe investors are starting to realize that Rocky Mountain's stock is a "hell of a bargain." He noted that Internet stocks have been up before without Rocky Mountain participating in the rise. Andy Drol, research analyst with Neidiger Tucker Bruner Inc. in Denver, said that's because of the cloud that's hung over Rocky Mountain as a result of a failed merger with Internet Communications Corp. (INCC). The failure of the deal resulted in an October lawsuit filed in Denver District Court by Internet Communications for more than $30 million in damages. Hanson called the lawsuit "frivolous," and he expects it to be settled eventually. Investors' concern about that lawsuit may have diminished, said Hanson, as positives may be grabbing their attention. He cited the company's four acquisitions in the last six weeks: national backbone provider DataXchange Network Inc., and Internet service providers Stonehenge Internet Communications Corp., InternetNow!, and Unicom Communications. And about two weeks ago, Rocky Mountain raised $8 million, with a commitment for another $5 million, in a private equity offering to institutional investors. "We've got people willing to invest in the company in the face of a lawsuit," he said. Drol said that Internet stocks have taken off recently, in part, because of publicity surrounding the strong Christmas-related purchasing over the Internet, through sites such as Amazon.com. That's particularly notable because of weak sales growth in retail stores, he added. He noted a story in Monday's Wall Street Journal that stated retailers' holiday sales this year are up 3.5% this year, compared with last year's 4.7% rise, while online sales have more than tripled compared with a year ago. Rocky Mountain Internet is well-positioned to take advantage of the e-commerce trend, Drol said, because of its acquisition of Application Methods Inc., which gave Rocky Mountain a strong tool to help businesses sell their services or products through Web pages. Droll noted that some other Internet stocks were up in recent trading, such as Amazon.com Inc. (AMZN), up 10%, and eBay Inc. (EBAY), up 4%. Rocky Mountain shares were up 9 5/8, or 77%, at 22 1/8 in recent trading, on Nasdaq volume of 4.1 million, compared with average daily volume of 189,245. - Tom Locke; 303-293-9294