The beginning of 2000 saw investors lunging out of the starting gates, sending technology and telecommunications stocks soaring. Value stocks, however, suffered as the growth-oriented tech stocks continued to climb. Last spring, however, as the tech sector began to falter, large growth stocks in particular began to lose speed as well. Near the end of 2000, tech stocks took a nose dive. But value-oriented stocks were more immune to the tanking.
Growth stocks are still trying to regain a foothold, industry officials say.
Value is up and growth is down, leaving companies like BindView reeling in its wake. But it's not only the tech stocks that have suffered, adds Buck, who says that companies focused on acquisitions sustained damage as well. While in favor a year ago, those companies aren't regarded as highly any more, producing lackluster results on the stock market. For example, over the past year ended March 31, ITEQ Inc. was down 98 percent and BindView was down 90 percent, Buck says. Metals USA Inc. was down 59 percent and BMC Software Inc. felt a 56 percent decline, he adds.