Magazine article American Banker

Tech Stocks Run out of Steam after Big Rally

Magazine article American Banker

Tech Stocks Run out of Steam after Big Rally

Article excerpt

Bank technology stocks mainly drifted lower last week, breaking a monthlong rally that boosted many firms' shares to their highest levels in a year.

Investors seemed to be engaged in some end-of-quarter profit taking, especially after technology issues had a sizzling June.

Technology firms were the focus of at many investor conferences this month. Executives at trust software developer National Computer Systems Inc. made a presentation last week at Piper Jaffray's 17th annual conference that was favorably received by the institutional investors.

In a Wall Street Journal article that appeared last week, Neal P. Miller, a mutual fund manager with Fidelity Investments Inc. said he was impressed with National Computer's management, particularly its chief executive, Russ Gullotti, who recently left a senior position at Digital Equipment Corp. to run the Eden Prairie, Minn.-based firm. In addition to its trust systems, National Computer makes forms-scanning equipment for the education market.

"The new management is very good, and the company has very high market shares," Mr. Miller said. "I think the company has some latent growth."

National Computer's common stock closed at $20.75 a share Friday, unchanged for the week.

Long-distance telephone carrier Worldcom Inc. announced last week that it had reduced its stake in payment processor Comdata Holdings Corp. to 7.7% of the firm's outstanding common stock.

Worldcom officials said they sold 600,000 common shares on June 21 at $14. …

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