Conventional wisdom has trained investors in technology to buy after a down day, but traders in Net stocks have been somewhat hesitant to subscribe to that dictum today.
TheStreet.com Internet Sector
index was down 12.84, or 1.1%, to 1141.60.
happy today after
was part of
, one of a couple of deals in the Net sector today.
CareInsite, a provider of online medical services, was up 6 1/8, or 9%, to 74. Healtheon/WebMD was up 4 7/16, or 8%, to 59 7/16, while Medical Manager was up 23 3/4, or 36%, to 88 3/4. Under terms of the deal, Healtheon/WebMD will pay 1.65 shares, or $90.75 a share, for Medical Manager, and 1.3 shares, or $71.50 a share, for CareInsite shares not owned by Medical Manager. Medical Manager owns 69% of CareInsite. Total value of the deal was listed at $4.8 billion.
continued its quest for world domination, announcing today the
news that it will buy
, a privately-held provider of Internet and e-commerce professional services, for $920 million in stock and cash. CMGI was up 4 11/16, or 4%, at 116 3/4. CMGI said the purchase will grow its billable resources by 350%. On Friday, CMGI said it will
buy online auctioneer
was up 16 1/4, or 7%, to 257. The company said today that its
business-to-business platform will be used as part of a joint venture with
. The joint venture will be called
, and will provide an electronic marketplace for aerospace products and services. The companies said the aerospace industry currently generates about $500 billion in annual sales worldwide.
, a maker of e-commerce software, was up 2 1/8, or 9%, to 25 1/2. The company said in a press release that
would recommend Elcom's automated procurement system to its member banks.
In analysts' action,
, an Internet service provider for Spanish- and Portuguese-speaking users, to near-term accumulate from near-term buy. Despite the downgrade, Terra was up 6 3/16, or 5%, to 138 3/16, though it had traded as high as 145 1/3. Merrill analysts wrote that Terra remained a "must-own" in a European Internet basket, but noted that the stock's run-up over the past few weeks has taken its market cap close to $40 billion.
"While we believe that Terra may eventually emerge triumphant as the 'gorilla' in the Spanish-speaking world, we feel that part of the 'option' is already priced in," they wrote.
Credit Suisse First Boston
reiterated a strong buy rating on
Art Technology Group
after a conversation with the company's management on Friday and ahead of investor presentations Tuesday and Wednesday. First Boston, which has not done underwriting for Art Technology, was also
talking up the stock last week. Analysts wrote that Art Technology was "rapidly becoming a preferred architecture for building scalable e-commerce Web sites." It was up 2 3/4, or 2%, to 121.