Exodus, Cypress Get Gildered
Exodus Communications Inc. (Nasdaq: EXDS) and Cypress Semiconductor (NYSE: CY) got Gildered today, not New Focus Inc. (Nasdaq: NUFO), as had been rumored.
Investors were closely watching for the technology stocks that showed up in the influential Gilder Report, released today. When companies are added to the Gilder list, they often receive a pop in the market -- a circumstance often referred to by traders as "The Gilder Effect."
On a day in which nearly all technology stocks were buoyed by a major rebound in the Nasdaq composite, it was difficult to distinguish the Gilder effect. Both names performed well, regardless of cause: Exodus gained $4.75 (14 percent) to $38.38 in midday trading and Cypress added $5.31 (15.32 percent) to $40.
Optical component-maker New Focus was rumored to be one of the additions as recently as yesterday, but the company did not appear on Gilder's list. New Focus was up $3.06 (3.88 percent) to $81.94 at midday.
-- R. Scott Raynovich, executive editor, Light Reading http://www.lightreading.com