Md. issues share in the losses Technology stocks and Alex. Brown are among victims

October 10, 1995|By BILL ATKINSON | BILL ATKINSON,SUN STAFF

Maryland technology stocks weren't spared yesterday's throttling as the Dow Jones industrial average fell 42.99 points and the Nasdaq combined composite index slipped 27.29 points.

Comnet Corp., a Lanham-based software developer, led the group, losing 30 percent of its value. It closed at $13 a share, down $4.

Alex. Brown Inc., the Baltimore-based investment banking firm, was pinched, too, as shares dropped $2.25 for a closing of $53.25. The firm is a major player in underwriting high-technology stocks.

"If [high-tech] stocks go down, people would associate that with less underwriting," said Mayo A. Shattuck III, Alex. Brown's president and chief operating officer.

Mr. Shattuck emphasized that Alex. Brown is a diversified firm, so it is insulated from problems in the high-tech segment of the industry.

"We are still not that far off from our high this year," Mr. Shattuck said.

Alex. Brown hit a high of $60.75 on Sept. 5 and bounced around the high $50s before drifting to $53.25 yesterday.

Dean Eberling, an analyst with Prudential Securities Inc., said investors were simply taking profits on Alex. Brown stock, which has had a "huge run" in its price.

He expects Alex. Brown's third-quarter results to be better than the second quarter, when it reported a 40 percent increase in revenues.

Other area high-tech companies hit by the sell-off included: Fusion Systems Corp., down $1.50 to $26.75; Information Resources Engineering Inc., down $1.25 to $17.75; and Manugistics Group Inc., down $1.25 to $14.75.

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