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Stock Watch – Market Tumbles on Dow Sell-Off

Posted: 04/2000

Market Tumbles on Dow Sell-Off

Although the tech sector screamed ahead in mid-February, the Dow and other traditional companies crumpled under pressure from interest rate concerns. Near the end of our trading session, the entire market retreated under a dramatic sell-off
that sent the Dow Jones Industrial Average to its lowest levels in three months.

Microsoft Corp.
(www.microsoft.com) dragged down the market after the release of a technology research firm’s study suggested the Microsoft’s new operating system may not be compatible with other software.

Some thought the downturn was part of a normal and healthy correction. “The market has come an awfully long way and it really needs a pause,” said Oberweis Asset Management & Brokerage Inc.
(www.oberweis.net) President James
Oberweis, Sr.

The Dow lost 1004.89 points, or 8.57 percent, ending at 10718.09. In contrast, the PHONE+ Stock Index continued its stubbornly positive outlook, gaining 259.87 points, or 5.58 percent, ending at 4913.04. Advancing issues outpaced declining issues 92 to 52.

Shares of VocalTec Communications Ltd.
(www.vocaltec.com) jumped after Investec Henderson Crosthwaite Securities
(www.investec.com) upped its price target for the company to $63, from $50, because of VocalTec’s increase in shares in ITXC Corp.
(www.itxc.com). Investec retained its “strong buy” rating on the company. VocalTec increased 19.31 points, or 81.10 percent, and ended at $43.13.

Microcell Telecommunications Inc.
(www.microcell.ca) and Aerial Communica-tions Inc.
(www.aerial1.com) were among our top gainers, after Microcell announced that VoiceStream Wireless
(www.voicestream.com) will contribute $276 million for a 15 percent equity stake in
Microcell, a wireless carrier based in Montreal. The transaction was expected to close at the end of February. VoiceStream is concluding deals with Omnipoint Communications Inc.
(www.omnipoint.com) and Aerial Communications. Microcell bounded ahead 15.88 points, or 46.35 percent, to close at $50.13; Aerial ended at $68.63, a jump of 19.44 points, or 39.52 percent.

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