Profit-Taking Continues in Internet Sector

TheStreet.com Internet Sector index has rebounded from its intraday low, but is still seeing red.
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Even

TSC's

resident bull

James Cramer

knows this might be a good time to take some

profits. And that apparently was happening as the market took a break from its dizzying run.

TheStreet.com Internet Sector

index was down 19.27, or 1.7%, at 1139.80 in recent trading after hitting an intraday low of 1128.12.

As has been seen so often, one trader's profits can be seen as another trader's opportunity. Take

CMGI

(CMGI)

-- please. The stock gained 22% to 270 3/8 yesterday after

Merrill Lynch

initiated coverage of the stock, and it dropped as low as 254 this morning. CMGI was recently trading up 8 1/2, or 3.1%, at 278 3/4.

And, boy, was

Commerce One

(CMRC)

a screaming buy. The business-to-business company traded as low as 458 1/2 today, a 21 1/2-point discount to where it closed yesterday. Investors were waiting, and the stock was recently up 13, or 2.7%, at 493.

TSC's

Adam Lashinsky

took a look at Commerce One's price target in an earlier

column.

Yahoo!

(YHOO)

was a downright bargain when it slipped below 400 earlier today. It was recently down 4 7/16, or 1.1%, at 410 after reaching a low of 394 3/4.

While some traders have been taking profits, it still remains relatively risky to short these highfliers, one reason why they bounce back so quickly.

Among other stocks in the news,

Network Solutions

(NSOL)

was up 9/16, or 0.9% at 268 1/16, after the company made a number of announcements, including a possible restructuring and a stock split. In addition, the company said it intended to file a follow-up offering of 7.73 million shares in the first quarter of next year.

The company said that it had retained financial advisers on a possible separation of its registry and registrar services. The registrar is the part of Network Solutions' business that assigns domain names, while the registry is the part of the business that manages the database. By splitting those businesses, Network Solutions would be eligible to receive an additional four-year extension as the exclusive registry for .com, .net and .org domain names.

The company also said that two of its board members, John Glancy and Donald Telage, had resigned. Analysts at

Bear Stearns

wrote in a note that neither of the resignations was a negative for the company. Bear Stearns analyst Raimundo Archibold indicated that both were instrumental in early stages of Network Solutions' lifecycle and in reaching agreements with

ICANN

and the

Commerce Department

. But, as Network Solutions moves into a new phase "where it will focus on competition and expanding its business into other areas, we assume the board seats will be filled by individuals who can be additive to this process," Archibold wrote.

The distribution date for the 2-for-1 stock split has not been determined, though it will occur after the follow-up's completion. As a result of the stock split and offering, the number of shares of its common stock will increase from approximately 33.9 million to around 69.8 million, according to Bear Stearns.