SAN FRANCISCO -- They're at it again. The mad splitters, darlings of the day traders. Internet companies that will be split in the near future continue to ramp higher ahead of the split.
Many of today's winners are the same as last week's --
"It's been one of the best trades to make the past few weeks," said one day trader, who asked not to be identified. "With day traders in general, we try to find out what has the best chance to cause a pop in a stock, and if there isn't a lot going on, they'll get a lot of play. Right now, there's not much else going on."
But with the play so well known, the trader said that timing remains the key to making money with a split trade. Typically, the stock will continue to rally after the split date as money comes in from those who weren't willing to pay pre-split prices, but the trader said you have to know when to get out.
"The more this game is played, the more jittery traders become and you might have the split effect taking course earlier and people getting out sooner," he said. "No one wants to be left holding the bag."
DoubleClick, which splits April 2, is up 16 3/4, or 9%, at 196 1/2. It was trading at 104 1/2 on March 11 when it announced the 2-for-1 split. The company also announced a deal with
to provide advertising to companies to which Comcast offers high-speed Internet access.
Exodus, which splits 2-for-1 April 12, was up 13 1/2, or 10%, at 154 1/2. It has almost doubled since trading at 77 15/16 on March 3. Shareholders approved its split last week.
Network Solutions, which splits 2-for-1 March 23, is up 10, or 3.5%, at 298, reaching a high of 307 earlier in the session. In addition to the split, the company announced the launch of a new Website for customers to establish and build an Internet site.
More Net Plays
Net stocks remain the big movers in the Nasdaq today. Among the winners are
AboveNet soared after it announced a strategic joint venture with an Austrian firm to build a regional data center. The company expects the deal to lead the way to providing service throughout Eastern Europe. It was trading 16 higher, or 27%, at 75 3/4.
Gains in @Home are related to the announced merger between
. Comcast is one of the cable operators that owns a piece of @Home and offers the company's service so @Home will have another distribution outlet. It was trading 17 3/16 higher, or 13%, at 151 1/4.
In somewhat related news, shares of CNet also gained after it announced that its
online network had launched a high-speed Internet service. CNet was trading 13 1/8 higher, or 15%, at 101.
Go2Net is up 17, or 15%, at 134 1/4. The company is holding a shareholders meeting today, and the run-up could be in anticipation of a split announcement or other news from that meeting.
Also, shares of
continue to climb. Today's news comes after
raised its price target and earnings forecast on AOL. The new price target for 1999 is 180, up from 100. For full-year earnings, ING Barings raised its estimate to 36 cents a share from 32 cents a share. AOL was trading 9 higher, or 8%, at 128 1/4.