09:19 ET Biopharmaceuticals Started : UBS Warburg initiates coverage of Guilford (GLFD), Cephalon (CEPH), Neurocrine Biosciences (NBIX) and Cell Therapeutics (CTIC) with BUY ratings. 12-month price targets: GLFD $28, CEPH $80, NBIX $46, CTIC $56.
09:19 ET ONI Systems (ONIS) 35.74: The Dell'Oro Group reported this morning that the DWDM metro market grew 16% in Q1, but that ONIS gained share with 50% growth. Nortel (NT) metro sales were estimated to be up 2%, with Ciena (CIEN) down 3%. NT was still in the number one position in terms of sales, followed by ONIS and then CIEN.
09:18 ET XOMA Limited (XOMA) 11.70: Company and Genentech (DNA) report that Phase III trials of Xanelim in patients with moderate-to-severe plaque psoriasis met the primary efficacy endpoint. Will make the decision to file a Biologics License Application with the FDA upon completion of full analysis of the Phase III data.
09:07 ET Hewlett-Packard (HWP) 29.58: -- Update -- Bernstein says that while HWP is largely an imaging company, the UNIX business is critical to long term success and that Bernstein is concerned about this business near term due to execution risks and long term due to bad positioning. Bernstein expects UNIX business to show declining revenues for balance of this year.
09:05 ET Plug Power (PLUG) 28.17: Receives $7 mln contract from a public utility to supply 75 of Plug Power's first commercial fuel cell systems together with installation, maintenance, training, engineering and other technical support services.
09:04 ET Pixar Animation (PIXR) 39.84: Tucker Anthony upgrades to ACCUMULATE from Hold ahead of the Monsters Inc. trailer, to debut June 15th in theatres. Although the official release date for Monsters Inc. is not until November 2, 2001, positive buzz surrounding the film will creep into the Pixar investment thesis over the next 3-5 months.
09:03 ET i2 Technologies (ITWO) 25.86: -- Update -- Company and IBM Corp (IBM) announce a joint solution of services and software to advance the adoption of next-generation Supplier Relationship Management for the high-tech industry.
09:02 ET TriQuint Semi (TQNT) 24.81: -- Update -- Dain Rauscher downgrades to BUY (Aggressive) from STRONG BUY (Aggressive); lowers price target to $27 (from $40).
09:01 ET Electr Data Sys (EDS) 64.78: Sources at Salomon Smith Barney telling us the firm just made positive comments on the EDS deals announced yesterday afternoon; believes they create synergies; would buy on weakness with a target of $84.
08:59 ET BMC Software (BMC) 24.52: CIBC World Markets says that its channel checks reveal that BMC is seeing more competitive threats from Hewlett-Packard (HWP) and Tivoli (part of IBM) selling into distributed environments; also notes that some mid-tier customers have been put off by the price of the new security product InControl.
08:57 ET Profit Recovery (PRGX) 7.72: Merrill Lynch raises near-term rating to ACCUMULATE from Neutral and long-term rating to BUY from Accumulate; cites anticipated improvement in the operating fundamentals of the business.
08:50 ET Piper Initiations : USB Piper Jaffray initiates coverage of CheckFree (CKFR) with a BUY rating and $45 target price, calls CKFR the dominant electronic billing and payment player. Also starts NextCard (NXCD) with a BUY and a target price range of $12-13, calls NXCD leading online credit card lender.
08:39 ET RoweCom (ROWE) 0.98: Agrees to be acquired by divine inc (DVIN 2.03) in a stock-for-stock exchange in which RoweCom shareholders will receive three quarters of a share of divine common stock for each share of RoweCom, or approx. $1.52 per share based on DVIN's closing price.
08:34 ET Networkers Initiated : First Union starts coverage of networking equipment stocks. Extreme Networks (EXTR) and Foundry Networks (FDRY) receive MKT PERFORM rating; in FDRY's case, analyst cites near-term risks associated with a tightening economic environment, the company's relatively high exposure to service provider spending and a lack of visibility for 2Q01. Sonus (SONS) and Redback (RBAK) get BUY ratings with 12-18 month price targets of $40 and $21, respectively.
08:31 ET Economic Data : Initial jobless claims for the week ended 5/19 rose 15K to 407K (consensus 390K).
08:30 ET Sawtek (SAWS) 28.25: Sawtek conference call to discuss yesterday afternoon's earnings warning: 800-563-9844; beginning right now.
08:28 ET Opening Indications : S&P futures +3, or 2 pts above fair value; Nasdaq 100 pre-market indicator +14. Retail stocks continue to be the main story for this quiet pre-market.
08:26 ET Enzon (ENZN) 70.30: Appoints Arthur J. Higgins to the posts of Pres/CEO and Chairman elect. Mr. Higgins joins Enzon from Abbott Labs where he was President, Abbott Pharmaceutical Products Division.
08:24 ET OmniSky (OMNY) 2.92: Announces deal that will increase News Corp's (NWS) stake in wireless services provider to almost 20%. Under the terms of the agreement, News Corp will transfer its interest in OmniSky International, together with all cash on hand, to OMNY in return for $18 mln of OMNY common stock.
08:22 ET Charter Comm (CHTR) 20.92: Prices 52.4 mln share offering at $21; the $550 mln of Convertible Senior Notes offered by the company will have an annual interest rate of 4.75% and will be convertible into Class A common stock at $26.25 per share.
08:19 ET Salomon Cuts Paper : Salomon Smith Barney downgrades four paper stocks to OUTPERFORM from Buy: International Paper (IP 39.30), Boise Cascade (BCC 36.46), Mead (MEA 29.79), and Temple Inland (TIN); cites lower pulp/paper forecast, strong dollar, and recent run-up in the group.
08:18 ET Goldman Starts Hospitals : Goldman Sachs initiates coverage of hospital operators. The Healthcare Company (HCA), Tenet Healthcare (THC) and Community Health (CYH) receive their highest rating, RECOMMENDED LIST. Health Management Associates (HMA), LifePoint (LPNT), Province Healthcare (PRHC), and Universal Health (UHS) all receive MKT OUTPERFORM ratings.
08:15 ET Handspring (HAND) 10.05: Bear Stearns lowers estimates based on continued weakness in consumer demand and aggressive pricing by Palm; Q4 cut to ($0.11) from ($0.07) and FY02 lowered to (0.01) from $0.10; reduces price target range to $8-$10 from $14-$18; maintains Neutral rating.
08:08 ET Wet Seal (WTSLA) 33: Speciality retailer reports Q1 earnings of $0.39 a share, 4 cents above consensus, vs yr-ago net of $0.18; sales increased 5.6% to $137.9 mln.
08:04 ET Gap Inc (GPS) 32.43: Lehman upgrades to STRONG BUY from Buy and increases price target to $45 from $35; believes that this "best-in-class" retailer has reached an inflection point and is poised for a continued turnaround; raises FY01 est. to $1.03 (from $1.00) and FY02 to $1.30 (from $1.20).
08:00 ET i2 Technologies (ITWO) 25.86: CSFB hearing from industry sources that ITWO will unveil today at its High Tech Day a new collaborative manufacturing (CM) application. ITWO's primary target appears to be Agile (AGIL), but firm doesn't expect any near term impact to AGIL's business.
07:59 ET Opening Indications : S&P futures +2, or 1 pt above fair value; Nasdaq 100 futures +12, or 7 pts above fair value. A number of retail apparel stocks reporting, but overall a quiet pre-market.
07:46 ET TriQuint Semi (TQNT) 24.81: CSFB reducing estimates after company lowered FY01 guidance by $40 mln, calling this the "biggest recession" ever in wireless and fiber optics; firm's 2001 rev. goes to $260.9 mln (from $293.4 mln) and EPS cut to $0.24 (from $0.45); 2002 rev. slashed to $283.8 mln (from $350 mln) and EPS to $0.33 (from $0.66); CSFB maintains Hold rating, as it is cautious on near term outlook for the wireless mkt.
07:36 ET Gilead Sciences (GILD) 53: Prudential downgrades to HOLD from Strong Buy on the basis of valuation as stock approaches Pru's $55 target price; continues to consider GILD a core portfolio holding.
07:33 ET American Eagle (AEOS) 38.16: Reports Q1 earnings of $0.21 a share, a penny above consensus, vs yr-ago EPS of $0.17; sales increased 41.3% to $251.5 mln.
07:26 ET Hot Topic (HOTT) 34.26: Robertson Stephens downgrades to MKT PERFORM from Buy to reflect concerns that weaker comp-store sales gains resulting from product flow issues could prevent HOTT from posting the upside to EPS that firm believes has been implicitly priced into stock's premium valuation.
07:20 ET Opening Indications : This morning's fair value figures -- S&P 500 fair value: 1291; closed 1 pt below fair value. Nasdaq 100 fair value: 1963; closed 5 pts below fair value. Current indications: S&P 500 futures are +1, or even with fair value. Nasdaq 100 is +8, or 3 pts above fair value... M&A activity in the oil patch (PDE/MRL) the big story of the morning; could provide a lift to oilfield drilling/services stocks; quite on the research front.
07:14 ET Tommy Hilfiger (TOM) 13.71: Reports Q4 earnings of $0.37 a share, vs yr-ago EPS of $0.37 (mean $0.34); results included a reduction in the effective tax rate which increased EPS by $0.04. Company reaffirms its outlook for fiscal 2002.
07:07 ET priceline.com (PCLN) 5.25: Delta Airlines (DAL) files with SEC to sell 5 mln shares of priceline.com stock "as soon as practicable."
06:59 ET Express Scripts (ESRX) 92.95: Announced a 2-for-1 stock split, payable on Jun 22. Company also increased earnings guidance to the upper end of the current range of First Call earnings estimates. The current range of First Call earnings estimates for 2001 is $3.04 to $3.10, with a mean of $3.07.
06:54 ET FLAG Telecom (FTHL) 8.29: Tyco International (TYC) announces a potential purchase of an 11% interest in the global telecom carrier. Tyco intends to hold the FLAG Telecom shares for investment purposes and has no present intention or right to acquire any additional equity interest in FLAG Telecom.
06:44 ET EchoStar (DISH) 34.03: WSJ reports that EchoStar is finalizing a proposal to acquire satellite-TV broadcasting company Hughes Electronics (GMH). People familiar with the talks said that DISH could make a formal offer as early as next week. Earlier this month, General Motors' (GM) Board of Directors voted to authorize formal talks with Rupert Murdoch's News Corp regarding a combination of Hughes Electronics with Murdoch's satellite network.
06:38 ET Pride Intl (PDE) 32.65: -- Update -- Merger expected be accounted for under the pooling-of-interests method and to be accretive to EPS in the first year after closing.
06:36 ET Pride Intl (PDE) 32.65: Company to merge with Marine Drilling (MRL) in a $6.2 bln deal, creating the largest offshore drilling contractor in the world. Terms of the deal call for PDE holders to own approx. 56% of the new company and MDE holders to own approx. 44%. The combined company will retain the Pride International name.
06:12 ET U.S. Markets : S&P futures trading at 1293.90, 2.9 points over fair value, Nasdaq 100 futures trading at 1975, 12.0 points over fair value. The 30-year bond is up a tick at 5.796%. The dollar is weaker against both the yen and the euro.
06:12 ET European Markets : FTSE +0.72%, DAX +0.88% -- European stocks mostly higher. Recent growth concerns somewhat pacified by strong Italian consumer confidence Vodafone boosted by Lehman Brothers’ suggestion that next Tuesday’s earnings will come in at the high end of expectations. HSBC also helped by Goldman Sachs’ upgrade to market outperform from market perform. Prudential shares supported by UBS Warburg upgrade to strong buy from buy.
06:11 ET Asian Markets : Nikkei -1.22%, Hang Seng -0.21% -- Asian stocks mostly lower. Technology hit by Nasdaq underperformance. Nikkei down for the third straight session with help from the recent strength in the yen. Semiconductor stocks throughout the region under pressure on the back of the bearish report from U.S.-based trade group Semiconductor Equipment and Materials International (expects chip equipment sales to fall 27% this year). Foreign buying helped Taiwan to buck the regional trend. Interest linked to expectations of another round of government intervention. |
