Planet Hollywood shares rocket towards the stars

Planet Hollywood, the trendy restaurant chain, saw its shares rocket by as much as 78 per cent in their first day of trading on Wall Street as investors put their money on a heady mixture of growth prospects and Tinseltown cachet.

"Eatertainment", the concept accorded to the combination of eating and entertainment, was seized on by some analysts as a good bet. "It has the brand name, it has the Hollywood cachet and it has great growth. The stock is hot," said Stefan Cobb, fund manager at Sirach Capital Management in Seattle.

Together with CompuServe, another starter stock, Planet Hollywood reflected continuing robustness in the market, underpinned by a strong bond climate, as big stock movers reacted to the good earnings news that continues to pour out of corporate America.

Apart from Planet Hollywood, the biggest single group driving the market was high tech shares, powered by better-than-expected earnings from Microsoft Corp, which restored confidence in computer-related companies' ability to keep earnings growing after sentiment had been knocked previously by an earnings growth slowdown warning from IBM.

Microsoft rose as much as $4 to $113 after reporting third-quarter net earnings of of $562m or 88 cents a share, up 42 per cent from the same quarter a year ago. "The Microsoft earnings were very, very good, and as a result the techs are providing some leadership," said Hugh Johnson, chief investment officer at First Albany Corp.

The Nasdaq Composite Index, a barometer of the high technology sector, was up five points at 1141 in mid-day trading. "It is all earnings today. There is a slight macro story given the strong bond market and the dollar, but the big movers are reacting to earnings," said Phil Roth, chief technical analyst at Dean Whitter.

CompuServe, the on-line service company, benefitted from the favourable high tech climate as, after a two hour launch delay, its shares rose as much as 18 per cent in their first day of trading. CompuServe sold 16 million shares at $30 to raise $480m.

"It is cheap relative to America Online and that makes it attractive, but this is the kind of stock that could really implode. The internet is advancing in such a way we cannot see the proprietary advantage of these services," said Neil Hokanson, fund manager at Hokanson Financial Management.

Start your day with The Independent, sign up for daily news emails
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Ashdown Group: Java Developer - Hertfordshire - £47,000 + bonus + benefits

£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas