The confluence of stratospheric weather systems that produced the "Perfect Storm" could be compared to the recent stock market's "Tech Wreck." Powered by the winds of rising interest rates, weaker earnings, and invester jitters, Hurricane Tech Wreck is rocking many stocks deep in the home buying ocean. In fact, Hurricane Tech Wreck has reduced some former IPO clippers to penny stocks.

Particularly seasick are stocks such as ELOAN (NASDAQ: EELN) and Homeseekers (NASDAQ: HMSK.) ELOAN has crashed from a high of $74.37 to a low of $3.00, a victim of the reversing tide of sentiment against interest rate-sensitive dotcoms with long range projected earnings. ELOAN is not projected to be profitable until well past Q4 2001, earning it a sell rating from its impatient analysts.

But nearing profitability hasn't smoothed the waters any for Homeseekers. Like Homestore, Homeseekers, formerly traded on the OTC, debuted on the NASDAQ in 1999 and is racing toward profitability in Q4 2000. But, HMSK has earned only a modest buy rating from its trackers. It has also dipped from its crest, from a high of $25. 50 to a low of $2.03, and it currently trades at about $2.50 per share.

Also taking a pounding in the waves is Lending Tree (NASDAQ: TREE,) coming off a high of $21 to a 12-month low of $4.75. It is trading barely above the penny level at about $7.75, buoyed by the life-preserver thrown to it by its six analysts, a cautious buy rating.

Of the 1999 IPOs in the real estate sector, Homestore (NASDAQ: HOMS) seems to be navigating the storm, turning its bow to the waves to keep from being upturned. Coming off a dizzying high of $138 to a jarring bottom of $14.06, Homestore has battled its way back to a stock price of about $34.75. Unlike other companies with similar earnings results, Homestore's stock prices rose sharply after its second quarter results were announced, and has held its own within a couple of dollars a share while other stocks plummeted this past week.

What's making Homestore so seaworthy? Pure investor sentiment, it seems. Homestore is the acknowledged leader of the sector, with marquee name strategic partnerships such as AOL and the National Association of REALTORS®, and a full-steam-ahead earnings report. Homestore reported a pro forma net loss of $2.8 million or 3 cents per share for the second quarter, compared with a pro forma net loss of $20.9 million or 36 cents per share last year, while its revenues increased to $50.2 million from $14.2 million last year.

Many investors are asking themselves how long the storm will last. Will the ships sink or will the waters calm and allow the captains to steer them toward higher valuations? According to some analysts, the so-called summer slump which is affecting many stocks only reflects anomalies from the past two years, but investors are still easily spooked, and may remain cautious in anticipation of the Federal Reserve meeting on August 22, 2000.

Finding support at 3,300 the NASDAQ is slowly climbing back up, undulating between 3,500 and well over 4,000, so there could be some good opportunities to buy the dip and ride the crest of recovery. One thing is certain, investors are not seasick yet of growth stocks, as evidenced by the quick gains the market continues to make when the clouds seem to part and sun shines for a few days.