Net Stocks Are Firm, but Overall, Tech Remains Mixed
SAN FRANCISCO -- Though Net stocks are back in favor, the rest of the tech sector is having a mixed day, as weakness in the bond market is again weighing on the stock market.
Among the day's losers is
EMC
(EMC)
, which makes corporate data storage equipment. It was down sharply despite comments from the company that loss of business with
Hewlett-Packard
(HWP)
will not hurt the company's revenue growth. There are reports that H-P will be reselling equipment by
Hitachi Information Systems
rather than EMC. EMC was down 8 13/16, or 8%, at 98 13/16.
Among the day's winners is
Seagate Technology
(SEG)
. The computer disk-drive maker said it will increase its share buyback program by up to 25 million shares. It was up 1 5/16, or 4.5%, at 30 9/16.
SanDisk
(SNDK)
is firmer following Monday's news that it will supply
Thomson Consumer Electronics
with its memory card for use in its personal digital audio player. SanDisk was up 5, or 24%, at 26.
And shares of
Hyperion Solutions
(HYSL)
are weaker after
FAC/Equities
cut its rating on the provider of analytic application software to neutral from accumulate. It was down 1 5/8, or 10%, at 14 1/4.
In merger news,
Wang Laboratories
(WANG)
is up sharply after the company said it had agreed to be purchased by
Getronics NV
, a Dutch computer services company. Getronics is expected to pay $1.8 billion, or $29.25 per share, in the deal. Wang was up 3 5/32, or 12%, at 28 21/32.
Going for Brokerage
Online brokerages are among the most volatile of the highly volatile Internet stocks. Shares of the brokerage stocks have exploded as more investors shift to online accounts and as news on the companies is positive. Bill Burnham, electronic commerce analyst with
Credit Suisse First Boston
reported that online trading firms experienced record trading volumes in April because of the strong market, numerous Internet IPOs and earnings releases.
Burnham noted that online trading volumes were up 66.7% in April vs. March, and trading volumes for the second quarter were running about 40% ahead of the first quarter.
While few would argue with the success that online brokerages have had, justifying the levels at which they are trading is another matter.
Deutsche Bank Securities
has hold ratings on both
Ameritrade
(AMTD) - Get Report
and
E*Trade
(EGRP)
, claiming current prices do not justify valuations even under the most optimistic of scenarios. Indeed, as of Friday, E*Trade had a market cap of $13.3 billion, while Ameritrade had a market cap of $7.84 billion.
E*Trade was up 1 7/8, or 2%, at 113 3/8, while Ameritrade was up 2 31/32, or 2%, at 126.
