09:27 Global Power Equip. (GEG) Priced at 20: This IPO will do well today if the company's pricing of the deal is any indication. GEG priced 7.35 mln shares at $20 per share, above the $16-$18 range. The market for energy stocks has been great with a number of recent IPOs popping on the first day. Other recent energy IPOs include Aquila (ILA 32.55), Reliant Resources (RRI 35.05), Shamrock Logisitics (UDL 30.35). Global Power, which makes equipment for gas turbine power plants, offers one of the broadest ranges of gas turbine power plant equipment in the world and it holds the number one or number two market position by sales in a majority of its product lines....Revenues have grown from $142.7 mln in fiscal 1997 to $416.6 mln in fiscal year 2000 for a CAGR of 42.9% and the company is currently profitable...A concern for longer term investors should be that its customer base is small. In fiscal 2000, General Electric accounted for 31% of sales and Mitsubishi Heavy Industries accounted for 22%. In fact, its five largest customers accounted for 75% of sales and 66% of backlog last year...Overall, expect the stock to get a nice pop today as the deal has quality underwriters in CSFB and Salomon Smith Barney. -- Robert J. Reid, Briefing.com
09:20 ET ******
Morning Movers : Although the market is currently positioned for a mildly negative start to the session, there are several issues that are performing well in pre-market trading. Marvell Technologies (MRVL 31.12) reported in-line earnings but was encouraged by indications of stability returning to the communications and storage markets. Adding to the positive bias is the Lehman upgrade this morning. Currently MRVL is trading 1.1 points higher which would put it at a fresh high for the recovery move off the April low. Initial resistance is in the 32.50/33 area with stronger ceiling at 33.50/34 (200 day exponential moving average/chart barrier). The concern here, on a short term basis, is that the combination of the potentially weaker market bias and overextended technical posture that has been created by the 300% surge off the April low in MRVL could restrict follow through. Further out, the impressive performance bodes well. Also part of the Lehman upgrade was Broadcom (BRCM 41.04) which is indicated to open more than 2 points higher. A solid congestion barrier comes into play in the 43.50/44.50 area with a secondary ceiling at 46. Once again, the stock may have difficulty with the resistance barriers given the recent run but it too looks well positioned even if a correction does develop. An interesting development of the Lehman note is that they made cautious comments on PMC Sierra (PMCS 39.28) and Applied Micro (AMCC 23.28) but these issues have actually been rising in pre-market trade. Potential for the stocks to fade if they do maintain the favorable bias into the open A solid first resistance is at this week's high of 41.40 for PMCS and 24.53 for AMCC. As for the Nasdaq Composite, very short term supports are at 2170 and 2155. -- Jim Schroeder, Briefing.com |
