THIS MORNING'S STOCKS WEEK OF 5/10/99-5/14/99
|3COM CORP (COMS,
26.56)- The networking equipment maker is mentioned as a takeover target in this
week's Business Week. The shares could get a boost from the story.
ACTIVE VOICE (ACVC, 14.38)- The company reported
better than expected fourth quarter results, losing 25 cents a share compared to estimates
of a loss of 35 cents. Revenues increased 40% in the quarter to $17.9 million.
ACVC is a maker of Computer Telephony Integration solutions.
BOEING (BA, 42.81)- The aircraft maker
will cut 7,000 jobs in St. Louis due to declining orders for F-15 fighter jets. The
stock could come under pressure on the news in today's trading.
CARIBINER INTERNATIONAL (CWC, 7.63)- The
company reported second quarter earnings of 16 cents a share, meeting expectations as
revenues rose 8.7% to $203.7 million in the quarter. The company also warned that
slow revenue growth will cause it to miss full year 1999 earnings estimates. CWC
also said it has hired an investment banker to explore strategic alternatives to enhance
EMCORE CORP (EMKR, 16)- The chip maker
reported a 59% jump in revenues during its second quarter as gross margins increased to
43% from 40%. The company reported a loss of 31 cents a share in the quarter, wider
than the 26 cent loss expected by analysts.
IRIDIUM LLC (IRID, 14.5)- The satellite
telephone operator said that it will fail to meet certain loan covenants because of lower
than expected subscriber satellites. The company has retained DLJ to help it restructure
its debt. The shares, which are down from a 52 week high of 65 1/8, could come under
further pressure today.
NORDSTROM (NOBE, 35.56)- The company met
first quarter earnings expectations of 22 cents a share, but reported a 2.6% decline in
same store sales during the quarter. Revenues fell 0.1% to $1.0 billion. The
shares fell 1 1/2 in after hours trading.
PEP BOYS MANNY MOE & JACK (PBY, 15.68)-
The auto service chain beat first quarter estimates by 2 cents, earning 20 cents a share,
an increase of 25% from the prior year. Same store sales increased 6% during the
quarter. The shares should get a lift from the better than expected results.
SDL INC (SDLI, 123.13)- The company
announced a 2 for 1 stock split after the close.
(CZN, 10.13)- The utility earned 21 cents a share in its first quarter, beating
expectations of a 7 cent profit. Revenues rose 8% to $438 million in the quarter.
CONAGRA (CAG, 24.81)- The food producer will cut
9% of its workers and close 15 plants as part of a restructuring designed to save $600
million. The company expects next year's earnings to grow by at least 14%. The
move will be greeted positively. The coompany's shares are down from a 52 week high
GEMSTAR INTERNATIONAL (GMST, 118)- The
company earned 46 cents a share in its fourth quarter, beating expectations by 2 cents.
Revenues increased 26% in the quarter.
INTELLIQUEST INFORMATION (IQST, 10.25)-
The company reported a loss of 3 cents a share in its first quarter as evenues increased
by 10% to $11 million.
MATRIX PHARMACEUTICAL (MATX, 2.75)- The
company's cancer treatment IntraDose has been given fast track status by the FDA.
PRICE ENTERPRISES (PREN, 7)- The REIT has
agreed to a $591 million bid from Excel Legacy (XLG, 5).The company also announced first
quarter results. Funds from operations increased to 19 cents a share from 8 cents
TELIGENT (TGNT, 55.88)-The Internet
service provider beat first quarter estimates by 16 cents, losing $2.05 in the quarter,
compared to last year's loss of $0.73. Revenues in the quarter increased to $1.5 million
(market cap is $2.9 billion...).
TRINITY INDUSTRIES (TRN, 36.13)- The
diversified manufacturer reported a 5% increase in fourth quarter earnings to 96 cents a
share, beating expectations by 4 cents. Revenues in the quarter increased to $775.1
million from last year's $710.2 million.
FITCH (ANF, 93.5)- The apparel retailer beat estimates by 6 cents, earning 23
cents a share in its first quarter, compared to 12 cents last year. Sales rose 40%
to $188.3 million and same store sales jumped 22%. The company also announced a 2
for 1 stock split. The shares should be strong in today's trading.
CISCO SYSTEMS (CSCO, 111.88)- The networker
reported better than expected third quarter earnings of 38 cents, beating expectations by
a penny a share. Revenues rose 44% to $3.15 billion in the quarter. The company
expressed optimism about the future and said the Y2K problem will have a smaller than
expected effect. CSCO also announced a 2 for 1 stock split. The shares rose 3
points in after hours trading on the better than expected news (and on the stock split
news). The rest of the tech sector stocks should get a boost from these results in today's
HARBINGER (HRBC, 12.5)- The software
maker earned 6 cents a share in its first quarter, compared to analysts' estimates of 3
cents. Revenues rose 11% to $33.5 million in the quarter.
LYCOS (LCOS, 98.25)- The stock rose $6 in
after hours trading after CNBC reported that the company had ended merger talks with USA
Networks (USAI, 35.88).
PACIFIC SUNWEAR (PSUN, 35.09)- The
apparel retailer earned 19 cents a share in its first quarter, an increase of 40% from the
prior year. The results topped expectations by a penny. Revenues jumped 33% to
$81.4 million. The company plans to open 108 new stores during 1999.
ROCK FINANCIAL (RCCK, 22)- The lender
warned that second quarter results will be significantly below the first quarter's.
The company cited declining loan margins and increased advertising expenses for the lower
than expected results.
WESTERN WIRELESS (WWCA, 24.43)- The
company reported a wider than expected loss of 7 cents a share in its first quarter,
compared to estimates of a 3 cent loss.
(CMCI, 7)- The electronics company has agreed to merge with Act Manufacturing
(ACTM, 15.38). Each CMCI share will be exchanged for 0.5 ACTM shares ( a premium of
approx. $0.69 per share over CMCI's closing price). Separately, the company warned that it
will report a wider than expected third quarter loss of $0.06-$0.08 a share, compared to
estimates of a 2 cent loss.
TELECOM (ECILF, 36.5)- The company missed estimates by 2 cents, earning 54 cents
a share in its first quarter. Revenues jumped 54% to $284.48 million.
FLASHNET COMMUNICATIONS (FLAS, 31)-
According to the Internet company's press release, "First Quarter Results Exceed
Estimates; Company Reports Record Revenue and Strong Subscriber Growth; Operating Loss,
27% Better Than Expected ". According to analyst estimates, the company missed
expectations by 15 cents a share, losing 50 cents in the quarter.
HIGHLANDS INSURANCE (HIC, 11)- The
insurer missed first quarter estimates by 7 cents a share, earning 17 cents. Gross
premiums written fell 8.1% in the quarter to $84.8 million. The shares are down from
a 52 week high of 26 3/8.
IMMUNEX (IMNX, 107)- A new study
indicates the company's Enbrel arthritis drug is an effective treatment for early stage
arthritis. The company will seek FDA approval in Q3 for the new indication.
The shares soared 10 3/4 in after hours trading on the news. Look for the news to
reinvigorate other biotech stocks in today's trading.
PENSKE MOTORSPORTS (SPWY, 43.13)-
International Speedway will acquire the remaining 88% of the company for $50 a share.
THESTREET.COM (TSCM,-)- The company's
shares were priced at $19 a share last night, at the top end of the $17-$19 range.
The shares will be in demand today...
WICKES (WIKS, 4.25)- The retailer
reported a 17.6% increase in April same store sales, and a $19.4 million increase in total
sales to $99.7 million.
(BUD, 71.06)- The company received a negative mention in this week's Barrons.
CHEVRON (CHV, 94.88): The oil company is
reported by Bloomberg to be in merger talks with Texaco in a deal that would be worth $42
billion. Look for oil stocks to get a lift from the merger rumor in today's
DEUTSCHE TELECOM (DT, 38.75): The
German telecom giant is reportedly close to making a $16 billion bid for UK cellular
LUXOTTICA (LUX, 16.38)-The Italian
sunglass maker expects 1999 full year results to be above current forecasts.
OHIO ART CO (OAR, 15.63)- The
etch-a-sketch makers reported a Q4 loss of $2.51 and a 15% decrease in sales. The
company blamed "substantial order cancellations in mid-quarter by major toy
retailers" for the dismal showing. The company's existing lenders will not be
extending their loan committments. AMEX has suspended trading in the company's stock
pending filing of a 10K. The company said it is discussing lending agreements with new
PIONEER BANCORPORATION (PNCZ, 31)- The
bank has agreed to a $341 million ($35.50 a share) offer from Zions Bancorporation.
REPUBLIC NATIONAL BANCORPORATION (RNB, 70)-
The banking group will be acquire by HNBC Holdings for $10.3 billion.
TOPS APPLIANCE CITY (TOPS, 1.19)- The
retailer reported a Q1 loss of 38 cents a share and a 7.7% decrease in comparable sales.
The company plans to de-emphasize lower margin product lines.
VOICE CONTROL SYSTEMS (VCSI, 3.19)- The
company has agreed to be acquired by Philips NV for $4 a share in cash.