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."
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 4 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 5 Apple and Google users being spied on for a decade because of 'Freak' security flaw
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...