Adaptec Flies High as Internet Plays Run Strong

Also, TheStreet.com Internet Sector index has bested its previous high.
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SAN FRANCISCO -- Earnings preannouncements can go both ways, and Adaptec's (ADPT) - Get Report announcement that third-quarter earnings would be better than expected has the stock flying.

In early trading, Adaptec was up 6 1/4 points, more than 33%, to 24 7/8 after announcing that its earnings would be above 20 cents per share, which is larger than

First Call's

consensus estimate of 14 cents a share. The company will announce earnings on Jan. 25 after the market closes.

"The Internet boom you're seeing is driving sales of Internet Window NT Servers, which are Adaptec products," said

Wellford Dillard

, associate analyst with

Friedman, Billings, Ramsey

.

Dillard said his firm, which has not done any Adaptec underwriting, raised its 12-month target price for Adaptec to 30 and is maintaining its buy rating. Despite threats from competing technologies, Dillard said Adaptec's research and development would keep it as a major player in the field.

Buying Opportunity

Early losses were nothing but a buying opportunity in

Amazon.com

(AMZN) - Get Report

. Shares of Amazon were 5 points lower at the start of trading to 133, but quickly rose to 147, or 9 points above Wednesday's close.

But shares of competitor

Borders

(BGP)

were not faring as well after Wednesday's announcement that it would not meet earnings

estimates. Borders was down 6 3/8, or 25%, to 18 11/16.

While the

Nasdaq

started off the day in the red, finally turning at about 11:00 a.m. EST, Net stocks and

TheStreet.com Internet Sector

index were strong from the get-go. The index stood at 465.47, up 20.12 points, and it has bested the previous index high of 457.85 set on Dec. 28.

Once again, the big names are leading the way. Shares of

eBay

(EBAY) - Get Report

have traded through the 300 barrier. The stock was up 26 points, or 9.25%, to 310.

Lycos

(LCOS)

was up 6 11/16, or around 10%, to 73 3/8.

CMG

(CMGI)

, which was featured in

TheStreet.com

Wednesday, was up 19 1/2, or 12.91%. Also,

Networking Solutions

(NSOL)

has added 28 points, or 16.3%, to 200 11/16.