Morning all! BRIEFING.COM IN PLAY -->
09:27 ET Logitech Intl SA (LOGIY) 32.25: SG Cowen initiates coverage with a STRONG BUY rating; says cordless, optical technologies drive growth in core desktop business; limited PC OEM exposure. Recent Labtec acquisition adds leadership in audio, strengthens US distribution.
09:24 ET KPMG Consulting (KCIN) 16.37: SG Cowen initiates coverage with a NEUTRAL rating based on significant IT spending cutbacks on consulting and systems integration and exposure to sensitive verticals - financial (16% rev), high tech (15%), comm and content (18%).
09:22 ET Gapping Up : Rambus (RMBS +16%) is the leading gainer in pre-market trading this morning. Stock experiencing heavy trading on EBNews report that company receiving a much higher royalty rate on DDR memory licenses than many analysts had estimated (should note that company still has a court case to win)... Biomira (BIOM +19%) inks a co-promotion collaboration with Merck KGaA valued at $150 mln... Genuity (GENU +14%) holding onto gains sparked by Verizon credit agreement, even after lowering revenue guidance for the yr... HOTJ (9%), CRUS (+8%), and EGAN (+8%) rally in response to earnings.
09:20 ET Opening Indications : S&P futures go out at -10, or 11 pts below fair value; Nasdaq 100 pre-market indicator -43. No movement in the past half hour and the market still appears likely to see a lower open.
09:19 ET Pacific Sunwear (PSUN) 26.98: Robertson Stephens downgrades to LT ATTRACTIVE from Buy on concerns that men's apparel category remains weak across the country and concern that a fashion shift away from shorts will hurt sales.
09:15 ET Guidant Corp (GDT) 40.37: Morgan Stanley downgrades to NEUTRAL from Outperform. Hard to make a strong case for the stock b/c of new uncertainties created by the presentation of the Contak CD trial. Appears trial design was too ambitious as it failed to show slowdown in disease progression.
09:14 ET Affiliated Managers (AMG) 53.59: Morgan Stanley Dean Witter upgrades to STRONG BUY from Outperform and raises price target to $65 from $60; cites excess cash, debt paydown, and improving business fundamentals.
09:04 ET CacheFlow (CFLO) 7.02: Company appoints a new Chief Financial Officer and a new Chief Technology Officer.
08:56 ET Cirrus Logic (CRUS) 16.70: Salomon Smith Barney upgrades to BUY from Outperform and raises price target to $28 (from $25). Trimming 2002 est. to $0.65 from $0.75 and 2003 to $1.25 from $1.35.
08:56 ET RF Micro Device (RFMD) 29.87: Company announces that it has received an orders for both GSM and DCS/PCS power amplifiers from Siemens AG; shipments expected in July and are expected to ramp to a multi-million dollar level this calendar year.
08:54 ET Check Point Sftwr (CHKP) 69.64: CIBC World Markets initiates coverage with a BUY rating; says CHKP is better insulated than most companies in the technology sector and will weather the storm relatively well. Price target is $90.
08:52 ET Kroger Co (KR) 25.05: CSFB upgrades supermarket chain to BUY from Hold; firm has a 12-month price target of $28.
08:49 ET Sonic Corp (SONC) 28: Bear Stearns downgrades to NEUTRAL from Attractive in the context of increasing concerns about operating costs in the QSR sector of the restaurant industry; stock is within $2 of $30 price target.
08:48 ET TMP Worldwide (TMPW) 57.66: Morgan Stanley downgrades to OUTPERFORM from Strong Buy after stock has more than doubled over the past 4 wks. Feels that TMPW has gone from very undervalued to more reasonably valued. Firm is "downshifting" on the revenue outlook but maintaining full yr EPS outlook.
08:47 ET Wendy's (WEN) 25.55: Bear Stearns downgrades to ATTRACTIVE from Buy based on increasing concerns about operating costs in the quick service sector of the restaurant industry. Wendy's operating profit margins declined by 200 basis points in Q1 and could be more problematic going forward given the likelihood of higher beef costs.
08:45 ET Opening Indications : S&P futures -11.5, or 12.5 pts below fair value; Nasdaq 100 pre-market indicator -41. Early negative bias exacerbated by jump in Initial Claims, which is keeping recession fears alive ahead of tomorrow's key Employment Report.
08:42 ET Biomira Inc. (BIOM) 7.75: Enters into global product development and co-promotion collaboration with Merck KGaA for two of Biomira cancer vaccines. The total value of the agreement to Biomira is more than $150 mln in license, milestone payments and equity investments.
08:37 ET Applebee's (APPB) 42.60: Banc of America Sec downgrades to BUY from Strong Buy and raises price target to $50. Downgrade based purely on strong stock price action, still recommend purchase but stock just 5% below original target price of $45, calling for less aggressive stance.
08:36 ET Genuity (GENU) 2.72: -- Update -- Reports Q1 pro forma loss of $0.30 a share, 3 cents narrower than consensus; revenues increased 21% to $299 mln. Company cut workforce by 12% during the qtr... Reduces full yr revenue guidance to $1.30-$1.35 bln (mean est. $1.45 bln). Puts full yr loss at $1.30-$1.35 vs previous guidance of $1.35-$1.40... Reduces capital expenditures for yr to $1.4 bln from $2.2 bln.
08:32 ET Convergys (CVG) 36.75: Prudential upgrades to STRONG BUY from Accumulate with a $49 target. Says AT&T Wireless billing contract win eliminates last of long term risks.
08:31 ET Jobless Claims : U.S. initial jobless claims rose 9K to 421K for the week of April 28. Figures was well above the 390K consensus... Selling in equity futures on the news, with S&Ps (-11.4 pts) making new morning low.
08:29 ET Rambus (RMBS) 16.40: EBnews reports that company disclosed in court that the eight DRAM makers company has reached licensing settlements with are paying Rambus 3.5% for rights to manufacture a double-data-rate memory, a level considered significantly higher than analysts had estimated... RMBS shares trading at $16.33 in pre-market.
08:24 ET Cox Radio (CXR) 26.31: Reports Q1 net loss of $0.02 a share, a penny narrower than consensus, vs a yr-ago profit of $0.38. Company reducing its previously announced guidance for full year 2001 to reflect lower industry expectations for radio advertising revenues.
08:15 ET Macromedia (MACR) 26.58: -- Update -- Salomon Smith Barney reducing fiscal 2002 est. to $0.90 from $1.25 after company reported disappointing results after the close; says failure by company to give ANY guidance spooked investors and caused the shares to trade down markedly in after-hours... Firm would be cautious for now as expectations are likely to be broadly reduced... MACR shares trading at $21 in pre-market.
08:13 ET Jack In The Box (JBX) 26.12: Bear Stearns downgrades to ATTRACTIVE from Buy based on a more cautious view on the QSR sector given concerns about the operating cost outlook. Says JBX is attractively valued but, has an uphill battle given its above average exposure to operating cost pressures, including California utility costs, beef, dairy, and labor. Salomon Smith Barney initiates coverage of JBX with a NEUTRAL rating.
08:08 ET Allegiance Telecom (ALGX) 20.35: First Union upgrades to STRONG BUY from Buy; says no catalyst from yesterday's investor meeting other than renewed comfort with 2001 estimates; feels that ALGX shares are compelling at an implied $1,542 per line based on yr-end target of 1.17 mln lines installed; balance sheet is strong and company is overfunded by an estimated $150 mln on its 36-month plan.
08:02 ET Pharm Product (PPDI) 54.65: Bear Stearns starts coverage with a Buy rating and 12-month price target of $66; expects PPDI to continue benefiting from positive outsourcing trends within the pharmaceutical industry's R&D process, driving sustainable long-term revenue growth of more than 15% annually.
07:58 ET Opening Indications : S&P futures -8, or 9 pts below fair value; Nasdaq 100 futures -19, or 18 pts below fair value. In a followthrough from yesterday, Dow and S&P looking weak relative to the Nasdaq.
07:56 ET Motorola (MOT) 16.48: UBS Warburg says industry checks suggest that Motorola could be on the losing end of additional cdmaOne infrastructure swapouts at Verizon. Would view as a near-term negative for stock should this situation materialize, but does not see as a material event long-term. Firm reiterates Buy rating and would view weakness down to base valuation level of $13-$15 as a buying opportunity.
07:47 ET Genuity (GENU) 2.72: Verizon Communications has agreed to amend its credit agreement with Genuity to increase from $500 mln to $900 mln the principal amount that the company may borrow from Verizon. "This agreement to amend our credit agreement with Genuity underscores the long-term importance of the company to Verizon's strategy of meeting the communications needs of large businesses." Also agrees to provide GENU with credit enhancements to readily access long-term sources of capital with maturities up to five years.
07:44 ET Handspring (HAND) 17.50: Lehman downgrades to BUY from Strong Buy based on valuation and view that pricing at the low end of the product spectrum will become more aggressive as PALM and HAND seek to move inventory through the channel. With no new catalyst over the next several months, firm believes that handheld computing stocks could undergo near term pressure.
07:31 ET Opening Indications : This morning's fair value figures -- S&P 500 fair value: 1272; closed 1 pt below fair value. Nasdaq 100 fair value: 1973; closed 1 pt above fair value. Current indications: S&P 500 futures are -7.7, or 8.7 pts below fair value. Nasdaq 100 is -25, or 24 pts below fair value... U.S. equities down in sympathy with European markets: UK (-1.5%), Germany (-1.2%).
07:23 ET Earnings Warnings : After the close, Asyst Technologies (ASYT) and Pharmacopeia (PCOP) reported disappointing quarterly results and issued reduced quidance... ASYT reported a profit of $0.05, well below $0.25 consensus and warned of a loss for the June qtr vs profit of $0.12 anticipated by analysts.... PCOP posted a loss of $0.10 a share, compared to the $0.01 anticipated by analysts. Lowers full yr earnings expectation to $0.70-$0.80.
07:11 ET Macromedia (MACR) 26.57: Issue tumbled 5 pts in extended hours trading after reporting Q4 net of $0.15 a share, 5 cents shy of consensus, vs yr-ago EPS of $0.30. Company refused to issue financial guidance due to poor visibility.
07:04 ET Texas BioTech (TXB) 7.60: Board of Directors authorizes the repurchase of up to 3 mln shares of TXB stock, or approx. 7%, of the company's outstanding common stock over an 18 month period.
06:58 ET Leap Wireless (LWIN) 36.30: Company sells 2.8 mln shares of common stock at $33.50 per share. The shares were part of a universal shelf registration statement initially filed in September of 2000.
06:51 ET Maxygen (MAXY) 15.25: Company to receive a milestone payment from Pfizer (PFE) developing an improved second generation manufacturing process for a Pfizer product.
06:39 ET Continental Air (CAL) 51.25: Airline announces the resignation of chief operating officer Greg Brenneman to return to his Texas-based private equity firm TurnWorks Inc.
06:35 ET Philip Morris (MO) 51.01: Philip Morris announced via an 8-K filing that Kraft Foods Inc. plans to issue 280 mln shares of class A common stock with an estimated price range of $26 to $31 per share in its IPO. Offering would raise up to $8 bln, well above the $5 bln the company hoped to raise when it filed for an IPO in March. Deal set to be the 2nd-largest IPO in U.S. history.
06:17 ET U.S. Markets : S&P futures trading at 1263, 9.0 points below fair value, Nasdaq 100 futures trading at 1950, 23.0 points below fair value. The 30-year bond is up 4 ticks at 5.692%. The dollar is a tad weaker against the yen, but a tad firmer against the euro.
06:16 ET European Markets : FTSE -1.44%, DAX -1.29% -- European stocks under pressure with most bourses off more than 1%. Markets pressured by an underperformance of telecom shares with Ericsson, Marconi and Nokia leading the way. Sector also hit by reports from mobile phone maker Epcos of flat or even declining earnings in the third quarter on the back of sluggish handset demand. Not to be outdone, Tele Denmark, Denmark’s biggest phone company, cut its 2001 sales forecast. Also of interest, Vodafone has continued to see better selling following yesterday’s announcement that it will sell shares to purchase stakes in Japan Telecom and Spain’s Airtel.
06:15 ET Asian Markets : Nikkei closed%, Hang Seng -0.70% -- Asian stocks mixed, but Japan out of the picture with the Nikkei closed today and tomorrow for the Golden Week holidays. Hong Kong stocks hit by HSBC’s announcement that it will sell as much as $24.3 bln in new shares to fund acquisitions, the standout of which was rumored to be Merrill Lynch. Oil shares also leading the way lower following a number of downgrades in the US yesterday. Stocks in Taiwan rallied almost 2% on talk of technical-related short-covering. Banks led the way higher, while the bigger semiconductor names also fare well. Korean stocks rose ever-so-slightly on another round of foreign buying interest.
00:00 ET Liberty Financial (L) 42.03: Company has agreed to sell its Keyport Life Insurance and Independent Financial Marketing Group units to Sun Life Financial Services of Canada for $1.7 bln, reports the Wall Street Journal. |
