SAN FRANCISCO --- Tech stocks ended a shaky week on relatively firm ground, despite weakness in bonds after what was seen as a mostly friendly employment report.
Dick Dickson, a technical analyst with
Scott & Stringfellow
, said recent choppy price action in tech stocks was due to distribution -- meaning investors who have made money on the stocks were taking profits, while others saw the losses as a chance to get in at a cheaper price. Dickson said the "smart money" is being made by those investors who are taking profits, still thinking that the stocks have some downside before the buying opportunity presents itself.
Dickson said he's received a lot of questions regarding
and sees the stock at a critical junction. He said AOL already has slipped below support at 120, and now faces key support at the April 19 low of 112. It closed today down 1 9/16, or 1%, at 118 3/16.
Dickson said he is still seeing rotation out of tech stocks and into cyclicals, adding that in order for the sector to turn around, you may need to see sideways action in the tech sector while the
Rumors and News
soared today on continued speculation that the company will be bought out. Xoom.com has been seen as a buyout target since
agreed to buy
in January. Those rumors are heating up again. It closed up 7 1/8, or 10.5%, at 75 1/8.
closed down 5 1/2, or 3%, at 165. The company said it planned an offering of $100 million in convertible subordinated notes and 3 million shares of common stock on a split-adjusted basis.
It was a mixed day for Internet IPOs. Top performer was
(MMXI:Nasdaq), which measures Internet usage. It closed up 28 9/16, or 168%, at 45 9/16.
(ADFC:Nasdaq), a provider of Internet-based ad services, closed up 14 15/16, or 99.6%. Underperforming was
(NETO:Nasdaq), a website building software provider, which closed up 1, or 8%, at 13.
Cuban Shows Interest in Pens
Pro sports have become a business that huge media companies and the obscenely rich can afford. Mark Cuban, and the company he co-founded,
, probably fall under both categories. Cuban reportedly is negotiating to buy a stake in the
. Cuban told
The Dallas Morning News
he is looking to be an investor in an ownership group, not the majority owner.
agreed to buy Broadcast.com in April, making Cuban's 9.25 million shares of the company worth a reported $1.2 billion.