To: rbarsom who wrote (429 ) 3/5/1999 4:10:00 PM From: terrapin Read Replies (1) | Respond to
AUSTIN, Texas (Dow Jones)--Modem Media.Poppe Tyson Inc. (MMPT) shares sank 9%
Friday to 24 5/8, a month after the company's initial public offering when the
stock soared more than 180%.
Jonathan Ewert, Modem Media.Poppe Tyson's vice president of corporate
communications and marketing, said he knows of no explanation for Friday's
decline. Ewert added that the company normally doesn't comment on trading
activity.
But some analysts attributed the slump to a settling out of the stock price
after its astronomic climb.
Modem Media.Poppe Tyson shares were priced at $16 before trading began Feb. 5,
when they closed up 181% at 45. The share price has fallen slowly since then,
closing at 27 3/16 Thursday before Friday's sharp decline.
Modem Media.Poppe Tyson, based in Connecticut, is an interactive advertising
agency that also does Internet site design and maintenance.
"There are tremendous growth opportunities (in online advertising), but the
field is very, very crowded," said Drew Ianni, of Jupiter Communications. "I
would guess that they will continue to settle a bit until at least they're
reporting that they're profitable."
Prudential Securities analyst James Dougherty was more blunt, pointing out
that the company's stock still is up more than 50% just one month after its
offering. Dougherty covers True North Communications Inc. (TNO), which owns a
stake in Modem Media.Poppe Tyson's parent.
"They're in that Internet craze," he said of Modem Media.Poppe Tyson. "There's
no fundamentals here (responsible for Friday's decline). There was no
fundamental reason for it to be at 45 either."
The stock's fall of 2 9/16, or 9.4%, Friday was on Nasdaq volume of 338,500
shares; it has been averaging 491,000 daily.
-Bob Sechler; 512-236-9637
(END) DOW JONES NEWS 03-05-99
04:03 PM- - 04 03 PM EST 03-05-99
Just a little profit taking... thats all.
