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by 10/6/2000 12:26 PM
Stocks quoted in this article:
Internet telephone service provider Net2Phone (NTOP – 22-13/16) has lost almost 10 percent today, despite the fact that the company reported earnings that were a penny better than estimates last night after the close. NTOP posted a loss of 29 cents per share, while analysts had expected a loss of 30 cents per share. The company also announced a plan to buy back up to nine percent of its outstanding shares.

NTOP has been a long-term underperformer. It has steadily declined since its post IPO high in September 1999, relinquishing 75 percent of its value.

Despite the equity's poor price action, short interest has plunged 75 percent from its January high to it's current level of just 748,827 shares. As contrarians, we view this lack of pessimism on a laggard like NTOP bearishly. <
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by 10/6/2000 12:26 PM
Stocks quoted in this article:
Delta Air Lines (DAL – 47-15/16) is bucking the broad downtrend today and has gained over five percent on reports that a buyout group, along with two ex-airline executives, will make a bid of $61 per share for the airline. This takes the stock well above its downtrending 10-day moving average, a trendline it hasn't managed to close above since July 25.

Option activity on DAL is focused on the call side today. The October 45 call has seen 2,057 contracts cross the tape on open interest of 1,748 contracts. A 1,500-contract block transacted between the bid and the ask. The October 40 and 50 calls have logged volume of 1,160 and 1,349 contracts, respectively. Several mid-sized blocks have traded near the ask on both options.
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by 10/6/2000 10:29 AM
Stocks quoted in this article:
Razorfish (RAZF – 5-1/8) is an e-consulting firm that boasts such high-profile clients as Charles Schwab and Time Warner. Along with many of its peers in the Internet sector, RAZF has been steeped in a downtrend of late, retracing 84 percent between its February peak and yesterday's close at 8-3/4. This morning, the stock has plunged 40 percent to a new all-time low.

Last night, the firm announced that its earnings per share for the third quarter will likely fall in the one-to-four-cent range. Analysts had expected the company to earn eight cents per share. Total revenue for the time period will weigh in around $77 to $78 million, said RAZF. Wall Street anticipated that the company would earn $80.5 million.

This morning, RAZF was greeted with a brokerage downgrade, as Lehman Brothers Holdings cut its rating on the shares from a "buy" to an "outperform." Heading into today, RAZF was covered by 13 brokerage firms, all of whom named the stock a "buy" or "strong buy." This leaves ample potential for further downgrades today, which could have even further negative repercussions for the shares.
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by 10/6/2000 10:29 AM
Stocks quoted in this article:
Genentech (DNA – 172) is one of the top biotechnology firms in the world. The company makes a variety of pharmaceuticals, including treatments for Hodgkin's disease and breast cancer as well as a human-growth hormone. Yesterday, company officials announced a two-for-one stock split that will be paid on October 24 to shareholders of record by October 17.

DNA has been consolidating sideways between the 160 and 190 levels since the beginning of August. For the past few sessions, the equity has been hobbling along its sideways-trending 20-day moving average. DNA breached its ascending 10-day moving average earlier this week and is also poised to close the week below its 10-week trendline.
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by 10/6/2000 10:15 AM
Stocks quoted in this article:
The AMEX North American Telecom Index (XTC – 1327.2) has stumbled out of the gate this morning, relinquishing just over 10 points. While the index remains above both its 10-day and 20-day moving averages, the XTC is still beneath all of its significant intermediate-term and long-term trendlines. The index is trending below its 20-month moving average, our line of demarcation between a bull and a bear market, for the second consecutive month.

Leading XTC laggards so far today are Sprint PCS Group (PCS – 34-1/2), down 2.4 percent; Sprint FON Group (FON – 26-3/8), down 2.3 percent; Nortel Networks (NT – 65-3/8), down 2.2 percent; Verizon Communications (VZ – 50-13/16), down 2.1 percent; and BellSouth (BLS – 43-15/16), down two percent.

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