Europe's Net Stocks: So Much For Flying High

A collapse in Net stocks could stall the New Economy in Europe

Investors practically trampled each other to grab shares of Hamburg-based Netlife when it debuted on Germany's Neuer Markt on June 1. Netlife was one of those Internet plays that made the Neuer Markt, an exchange specializing in high-growth companies, so sexy and exciting. But passion has a way of cooling off. Shares of the electronic banking software provider, which began trading at $27, are down over 60% as of Sept. 28. Analysts blame management mishaps, overly ambitious sales projections, and the global meltdown in technology stocks.

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