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Techs rise, but PC fears lurk
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March 18, 1999: 5:59 p.m. ET
Network Associates tumbles, Compaq skids after analysts appear to get cold feet
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NEW YORK (CNNfn) - Wide-scale enthusiasm about tech stocks on Thursday didn't rally a key network security products maker, which tumbled sharply amid concerns about its sales ahead.
Network Associates (NETA) sank 8-7/8 to 32-1/4. BancBoston Robertson Stephens cut its rating on the stock to "buy" from "strong buy."
Concerns have grown about whether the network security products maker will meet analysts' expectations of 49 cents per-share profit in the first quarter, according to First Call Corp.
In the software arena, Microsoft (MSFT) rose 5-5/16 to 172-7/16 as the software titan unveiled a new Internet Explorer 5.0 Thursday and said it will release a second edition of its Windows 98 operating system this fall.
Compaq Computer (CPQ) tumbled 1-3/8 to 31-7/8 after the influential Piper Jaffray analyst Ashok Kumar cut his first-quarter estimates on the PC vendor to 20 cents per share from 35 cents, predicting inventory overhang and weakness in the industry will hurt.
Among rivals, Dell Computer (DELL) dropped 11/16 to 42-1/4, Gateway (GTW) lost 3/4 to 71-3/4, and IBM (IBM) fell 7/16 to 177-5/8.
Investors got a bright idea to buy shares of Advanced Lighting (ADLT), rising 2-7/8 to 10-1/4, after General Electric (GE) said it would boost its stake in the light-bulb maker to $20.6 million.
Gemstar International (GMST) rocketed up 5-13/16 to 62-5/16 after announcing the Baby Bell US West (USW) will provide Gemstar's TV program guides with its digital television set-top boxes.
The Nasdaq Composite index rose 33.99 points to close at 3,433.07 Thursday.
Internet issues roll on
Internet investor CMGI (CMGI) shot up 9-7/16 to 184-5/16 after splitting its stock two-for-one. CMGI, which owns just under one-fifth of the Internet portal Lycos (LCOS), reportedly is confident Lycos shareholders won't favor the buyout bid from USA Networks (USAI).
CMGI, which has said it opposes the deal, is said to favor a shareholder vote on the proposal, rather than offering an alternative.
Trying to cash in on the cyberspace rage, Barnes & Noble (BKS) clambered up 5-1/2 to 34-3/8 after the book vendor said it would take public its barnesandnoble.com Web site.
Investors were heating up shares of Egghead.com (EGGS), gaining 4-15/16 to 21-7/8 after Piper Jaffray coverage of the Web PC vendor with a "strong buy" rating.
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