Though we have come to expect extreme volatility as the norm with technology and Internet sectors, it's still a little surprising to see the
do what it has done so far today.
After tumbling more than 140 points early on, the Nasdaq erased most all of those losses, lately up 2.43, or 0.05%, to 4612.43. What happened was fairly simple. Traders, spooked by what went on yesterday, sold into the opening, sending the Nasdaq toward its March 16 low of 4455.10. But other traders were just waiting for that area to be tested, buying just ahead of the low, allowing the market to recover.
Internet stocks followed a similar course.
TheStreet.com Internet Sector
index traded as low as 1142.22, just above its low of 1135.31 from that same March 16 date. It recently was up 20.35, or 1.72%, to 1205.18. Ever the bull, our own
wrote that he was not selling anything, and was using this morning's weakness to buy some favorites in an earlier
It's worth revisiting a number of stocks that were pummeled by this weekend's
story on the burn rate of Internet stocks.
, which did the study for
, changed the burn rate for
, but the stock had only recouped a small portion of yesterday's 4-point slide, not nearly all of it. Healtheon WebMD was up 13/16, or 2.8%, to 30 5/16 in recent trading.
A couple of other companies publicly disputed the findings, but their results were mixed today. Many of the problems developed because the data used in the study were based on fourth-quarter revenues and expenses, and did not include any additional investments or offerings the companies might have had since the beginning of the year.
, which said it had sufficient cash to support operations through 2001 rather than the 6.45 months that the article stated, was down 1 3/4, or 9.6%, to 16 1/2 after losing 12% yesterday. The company had a follow-up offering last month.
, which was No. 2 on the
list, also disputed the story, pointing out that it had $40 million in cash on hand, in part due to investments by
. It was off 11/16, or 12%, to 4 15/16 today after tumbling 17% yesterday.
, whose CEO, Charles Johnson Jr., said the report was "completely erroneous" when he appeared on
Monday, was down 6 1/4, or 4.8%, to 123. The company had a stock offering last month that raised $151 million, leaving it with a burn rate of more than three years, according to
Credit Suisse First Boston
, instead of the 10.25 month burn rate listed in
. It declined by 15% yesterday.
A number of other stocks were still reeling.
, which dropped 14% Monday, was down another 1 3/16, or 6%, to 18 9/16.
, which dropped 13% Monday, was down 13/16, or 7.9%, to 9 1/2.
Pilot Network Services
, which fell 14% Monday, was down 4 5/16, or 10%, to 38 9/16 recently.
was flat at 3 1/8 today after declining 12% Monday.
With the market going nuts this morning, we missed a couple of items of note, including some action by analysts that moved a few stocks.
reiterated a strong buy rating on
Copper Mountain Networks
and a 100 price target following news that
was expanding its
relationship with the company. Copper Mountain was lately up 1 19/64, or 1.5%, to 89 31/64.
W.R. Hambrecht also initiated coverage of
with a strong buy and a 150 price target, and
Cambridge Technology Partners
with a neutral rating and a 20 price target. W.R. Hambrecht has not done underwriting for either company. Breakaway was up 1 1/2, or 1.3%, to 113 1/2, though it traded as high as 118 1/4. Cambridge was down 3/16 to 14 3/8.
U.S. Bancorp Piper Jaffray
initiated coverage of
with a strong buy rating and a 12-month price target of 193. It was up 6 1/8, or 9.9%, to 68.