Stock Watch: HealthCentral.com Climbs on Hotmail Deal

Shares of HealthCentral.com (Nasdaq: HCEN), an online health-related destination site that includes an online drugstore, rocketed more than 42 percent on Monday, rising 4-1/16 to 13-11/16 after the company announced a deal with Microsoft’s Hotmail service.

HealthCentral.com is now the premier provider of health and fitness newsletters to Hotmail’s more than 45 million subscribers. HealthCentral.com’s newsletters promote both its content and e-commerce offerings, and this deal could significantly raise the company’s exposure. Approximately 84 million newsletters are delivered to Hotmail subscribers each week.

Monday’s gain was a nice rebound for HealthCentral.com, which went public at $12 a share and had fallen as low as 7-7/8. Last week, underwriter Lehman Brothers gave HealthCentral.com, which also has a deal with AltaVista, a buy rating and a price target of $30.

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