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CNNfn market movers
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April 12, 1999: 2:31 p.m. ET
Net.B@nk, Covad lead resilient tech shares; Curative ill on accusations
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NEW YORK (CNNfn) - Investors formed a love-hate relationship with tech issues Monday, while CBS Inc. provided the wave to lift several entertainment ships.
After souring on the relationships early as a result of Compaq's (CPQ) surprise earnings shortfall, most investors had kissed and made up with several tech companies by early afternoon.
Particularly hot in most minds was Net.B@nk Inc. (NTBK), an Internet bank. Its shares climbed 28-1/2, or 24 percent, to 148 after the firm's chief executive officer said the bank could have 55,000 accounts by year-end, more than double its current total.
Investors also swooned over Covad Communications (COVD), a wholesale provider of high-speed data services that inked a deal with PSINet Inc. Monday to offer PSI customers high-speed Internet access.
Word of the deal, which will allow customers to bypass existing local phone companies to receive a range of telecommunications services, sent Covad's stock up 25-7/32 to 106-23/32 while PSI (PSIX) was unchanged at 1-7/8.
eBay Inc. (EBAY) found its way back into investor's hearts by announcing a pair of deals that sent its shares up 7-1/8 to 190-1/2. The Herndon, Va.-based Internet auctioneer said it would team with U.S. Office Products Co. (OFIS) and iShip.com to provide shipping services for Web commerce.
Meanwhile, CBS Corp. (CBS) provided a lesson in always looking at the big picture by signing agreements with two companies that managed to rally all three stocks.
Shares in CBS climbed 5/16 to 45-7/8 after agreeing to purchase a 35 percent stake in hollywood.com - a popular movie Web site - and then acquiring its Dallas/Ft. Worth affiliate from Gaylord Entertainment Co. (GET)
The deals also lifted shares in Big Entertainment (BIGE), which is selling the hollywood.com stake, 11-1/8 to 26-7/8 and Gaylord 4-3/4 to 28-1/8.
No love lost
Still, some leftover hard feelings from Compaq's earnings announcement late last Friday lingered into the early afternoon.
Among those still smarting from the earnings shortfall were Texas Instruments (TXN), down 2-3/4 to 107-7/8, Sun Microsystems (SUNW), down 1-1/4 to 69, and Apple Computer (AAPL), down 3/4 to 36.
In addition, theglobe.com (TGLO) experienced a bump in its previously meteoric stock rise after announcing it expects to register to sell 4 million shares, 2 million of which will be sold by existing shareholders. News of the offering dropped the company's stock 5-5/16 to 73-58.
Also not feeling well was Curative Health Services Inc. (CURE), which shed nearly half its value after the U.S. Justice Department accused the company of joining with the country's largest hospital chain in a kickback scheme to defraud Medicare.
The Hauppauge, N.Y.-based disease management company was down 3 to 5-1/16 in early afternoon trading. The Justice Department announcement also earned it a downgrade from BT Alex. Brown.
Newport News Shipbuilding Inc. received a downgrade of a different sort when Senate Armed Services Committee Chairman John Warner said the U.S. Department of Defense was growing concerned about a proposed $1.4 billion takeover by General Dynamics (GD)
Newport News (NNS) shares dropped 3-1/16 to 27-11/16 following the announcement, while General Dynamics climbed 2-5/16 to 68-7/8.
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