Skip to main content

IPOs Soar as Bulk of Net Sector Stumbles Along

The old magic is still there, but only for initial offerings. Meanwhile, other areas, like E-finance, are once again on the defensive.

While the rest of the Internet sector has been unable to maintain momentum from day to day, the IPO market has had no such problems. A few more Net IPOs have debuted today, and the results have been pretty decent. TheStreet.com Internet Sector index was lately up 5.43, or 0.8%, at 648.92.

Radware

(RDWR) - Get Radware Ltd. Report

, an Israeli-based company that makes hardware and software to help manage Internet traffic, was up 12 3/16, or 68%, at 30 3/16.

Loislaw.com

(LOIS)

, which provides a database of legal information, was up 13/16, or 6%, at 14 13/16. Lois stands for Law Office Information Systems.

Taking a peek at some of the hottest IPOs in the past few sessions,

Foundry Networks

undefined

, which peaked at 166 9/16 in its first day of trading Tuesday, was recently down 2, or 1.5%, at 128. Also, Wednesday's hot IPO,

InterNap

(INAP) - Get Internap Corp. Report

was down 5 63/64, or 11%, at 47.

Elsewhere, there's more on

Excite@Home

TheStreet Recommends

(ATHM) - Get Autohome Inc. Report

from the

Los Angeles Times

. The newspaper reported that Excite@Home's board was preparing to vote on whether to divide the online service into two companies, citing unnamed sources close to the situation. The story indicated that

AT&T

(T) - Get AT&T Inc. Report

, which is Excite@Home's largest shareholder, sent a proposal to the Excite@Home board this week calling for separating the company's distribution and content assets.

TSC

suggested just such a breakup was increasingly likely in a

piece last night. Excite@Home was down 1, or 2%, at 42 7/16 in recent trading.

CMGI

(CMGI)

was back in the news. The company said today that it was buying online advertising agency

Flycast Communications

undefined

in a stock swap worth about $559 million. CMGI was up 2 1/16, or 2%, at 102 3/8. Flycast was up 7 11/16, or 20%, at 45 11/16.

Online financial sites were back on the defensive after rallying Wednesday.

TheStreet.com E-Finance

index was down 1 5/32, or 1.9%, at 59 1/8. Among the decliners was

E-Loan

(EELN)

, off 2 7/8, or 12%, at 21 1/4 after the company preannounced third-quarter earnings. E-Loan said it expects a pro forma loss per share of approximately 35 to 34 cents, vs. the

First Call/Thomson Financial

estimate of a 29-cent loss. E-Loan said its mortgage refinancing volume declined approximately 38% due to higher interest rates.

TSC

columnist

James Cramer

looked at E-Loan in an earlier

piece.

Juniper Networks

(JNPR) - Get Juniper Networks, Inc. Report

was only modestly lower despite completing a secondary. Juniper sold 5 million shares, 1.5 million by the company and 3.5 million from certain stockholders. It was recently down 5/16, or 0.2%, at 191 1/8.

Shares of

Inktomi

(INKT)

were down 2 11/16, or 2%, at 120 1/2 after

Morgan Stanley Dean Witter

initiated coverage of the company with a less-than-stellar outperform rating.

Finally,

Youbet.com

(UBET)

was down 3/16, or 2.6%, at 7 1/16.

BancBoston Robertson Stephens

reduced its target price on the Internet gaming site to 20 from 42. BancBoston, which has done underwriting for Youbet.com, reduced its estimate of the number of Youbet subscribers for 1999 to 22,000 from 35,000 and for the year 2000 to 75,000 vs. 141.000. The reductions, it said, were in part due to a one-month delay in TV advertising because commercials took longer to pass through the station's "programs and practices" departments than expected.