US internet stock nervousness has spread to Australia in the last several days, and as sales of technology shares have escalated, analysts are warning that several upcoming internet-related floats are now at risk. One of the most hyped recent listings, Publishing and Broadcasting Ltd’s internet division ecorp, is down to A$1.90 from a high of A$2.82; online travel agency Travel.Com has taken an even harder knock dropping from A$2.94 to A$1.10; the most recent internet listing, web designer Spike Networks, has fallen from a high of A$1.48 to A$0.91 and is now below its listing price, while even Sausage Software, developer of the Hot Dog web authoring tool set, has fallen from a recent peak of A$2.75 to A$2.20 despite Telstra Corp having taken a large stake in it and a series of good-news announcements.
Brokers said at least six floats would be affected by the volatility, either being withdrawn or repriced downwards. Plans by major publishing company John Fairfax Holdings to float its online businesses were rated as the most high-profile share issue at risk by fund managers. Fairfax shares have fallen 6% in the past week. The weak market in internet stocks could also stifle plans for many smaller mining stocks to convert themselves into a dot com stock to boost their share prices as a handful have already done.
