Bottoming Out? - table - Industry Trend or Event - Statistical Data Included

The market plunge was swift and brutal. Now the climb back begins. Or not.

Beware the ides of March, big time. Since March 15, there hasn't been much good news for Internet Economy stocks. As the year winds to a close, stocks in The Standard 100 index have more than erased the gains of early 2000 and are down more than 70 percent.

During summer and fall, investors trumpeted the glories of a fiber-optic boom that would address the Net's insatiable demand for capacity. This turned the hardware sector into the index's best-performing group of 2000. But that sector's gains, too, have withered as the prospects dimmed for many of the largest fiber-optic plays.

A look at the list of best- and worst-performing members of the The Standard 100 shows the extent of the damage. Just 15 of the 100 Internet-related companies have shown gains so far this year. The average gain was 57 percent, but the average loss among the other 85 companies was 63 percent. Ciena landed atop the gainers' list as investors clamored for all things fiber optic. The sorest loser was NorthPoint Communications.

Nowhere to go but up? Hardly. The markets will continue to search for a ledge to begin the long climb back. But the ongoing blizzard of poor earnings reports, plus uncertainty about the new administration and the economy, may leave investors in the cold for some time.

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COPYRIGHT 2001 Gale Group