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Sun Shines, Cisco Flies, Nike Limps
(MONEY Magazine) – The MONEY 30, an index of blue-chip growth stocks representing the new economy, remained almost unchanged at 3,885 from Jan. 24 to Feb. 23 (January 1996 =1000). Sun Microsystems and Cisco Systems galloped past most other MONEY 30 members with returns for the month of 20% and 27%, respectively. Both companies make software used in Internet applications--a hot business even at a time when lots of Net stocks are getting clobbered. Meanwhile, Nike tripped and fell over its own shoelaces. The athletic shoe and clothing retailer suddenly announced that it would miss earnings forecasts for this year and next, and its stock plummeted 19% in a single day. In all, it slumped 43.5% for the month, making it the biggest loser in the MONEY 30. As for Mattel, which has made quite a habit of falling short of analysts' expectations, CEO Jill Barad finally resigned after failing to turn the company around. The stock has plunged 60% in the past 12 months. --ERICA GARCIA |
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