NEW YORK MARKET; Nuts and bolts internet stocks are the new stars
Sunday 21 November 1999
"Early in the year, the Amazons and eBays had the most spectacular performances, but during the latter half we've seen a shift toward the infrastructure companies," said Steven Tuen, manager of the $750m (pounds 463m) Internet Fund. "Those are the ones that have been taking off lately, especially in the IPO area."
Sycamore Networks illustrates the trend. The company, whose products allow faster data flow, soared almost five-fold in its first day of trading last month and is now up 592 per cent. "Sycamore is helping to make the cement that builds the ebusiness foundation," said Rich Begun at Orbitex Management. "Infrastructure is the foundation that allows ecommerce to take place," and faster, more efficient communication is key for developing internet technology.
Commerce One, which helps link buyers and suppliers on the internet, has posted the biggest return in the Bloomberg Internet Index since its June IPO, soaring 1,465 per cent.
Many internet retailers have been left behind - the worst performer among recently public net companies being Musicmaker.com, a CD retailer that is down 42 per cent from its offering price. It has plenty of company among other retailers on the list of stocks in the red. Amazon.com is still 26 per cent below its April high.
Wall Street can expect a continuing stream of infrastructure companies to begin selling shares to the public, said Paul Cook, who runs the $2.5bn Munder Net Fund. "There are momentum factors out there that propel the business prospects of these companies," he said.
"There are some very interesting companies that are becoming public soon."
Liam Neeson's Downton dreams
Thriller is set in the secret world of British espionage
Bomber jacket worn by Mary Berry sells out within an hour
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: What you shouldn't tweet about if you want to avoid jail today
- 3 Scottish independence: Five reasons Salmond is secretly hoping for a 'No' vote
- 4 Isis plan to 'behead random member of the public' in Sydney thwarted by Australian police
- 5 Archbishop of Canterbury admits doubts about existence of God
Scottish independence referendum live: Markets gamble on Scotland vote with 'final prediction' showing eight-point lead for No
Scottish independence: Final opinion polls show undecided voters could swing result either way
Isis plan to 'behead random member of the public' in Sydney thwarted by Australian police
Scottish independence: Andy Murray backs Yes campaign in eleventh hour decision
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence referendum: A nation divided against itself
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
iJobs Money & Business
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...
To £85,000 + banking benefits: Saxton Leigh: You will be expected to carry out...
Up to £90,000 + benefits: Saxton Leigh: Credit Risk Audit Manager required to ...