MARKET TALK: Microtune Out The Naysayers
22 Jan 08:59
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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8:58 (Dow Jones) The recent weakness in Microtune's (TUNE) stock isn't
justified, says J.P. Morgan, which raises the circuit maker to buy from
long-term buy. The firm says TUNE shares have been hurt by negative comments
from the consulting firm Off Wall Street and recent insider trading reports.
However, J.P. Morgan says the issues raised by OWS weren't new and the insider
trading concerns were created by delays in D.C. mail facilities. "We believe
that the tone of business has continued to trend in a positive direction." (GS)
8:52 (Dow Jones) Pretty straightforward call coming from Merrill's chief
quantitative strategist, Rich Bernstein: The tech sector is selling at the
highest relative P/E in the history of his data, while the drug industry is
selling at one of the lowest. "We think investors should be booking any
technology sector gains, and reallocating the funds toward drug stocks," he
says. (TG)
8:46 (Dow Jones) After dropping about 6 points earlier Tuesday on reports
that discount retailer Kmart (KM) would soon file for bankruptcy, Kmart bonds
are now rebounding to 48-50 cents on the dollar level. "Some guys were short
and are now covering," a debt trader said. "But the bottom line is that there
is some fundamental buying in the mid 40s." Kmart is expected to seek Chapter
11 protection as early as Tuesday. (CSR)
8:41 (Dow Jones) Bisys (BSYS) reporting 2Q after the close, and ABN-Amro says
the company may top the firm's view of 42c. Insurance and Education could
represent both the fastest growing segment and the most profitable, and
ABN-Amro looking for solid numbers from Information Services and Investment
Services divisions. Keeps buy rating. (TG)
8:34 (Dow Jones) Restaurant stocks still look appetizing, says analyst Janice
L.Meyer at Credit Suisse First Boston. "We expect to see improving
fundamentals in the industry," she says, adding that there's more upside in
many shares. Her favorites: Brinker International (EAT), Darden Restaurants
(DRI), Tricon Global Restaurants (YUM) and P.F. Chang's China Bistro (PFCB).
But Meyer says there's been significant short covering in Chang's lately, so
the shares could be due for a pullback. (RLG)
8:30 (Dow Jones) Loads of news to start off the business week, some of it
qualifying as, at the very least, surprising. It turns out Amazon (AMZN) didn't
need to report its 4Q results on Fantasyland to make a profit, posting GAAP EPS
of a penny. Bermuda is gaining three new business partners, as Tyco (TYC) is
turning itself into four companies. Keep your eyes on the tape for potentially
big news from Kmart (KM) regarding its future, while 50 cents a share
apparently sealed the deal for Willamette (WLL) - or maybe it was the fact
Weyerhaeuser (WY) recently got a ton of Willamette shares voted in its favor.
Earnings are everywhere you look, and leading indicators coming out at 10 a.m.
ET. Stock futures look good, Treasurys soft. (TG)
(END) DOW JONES NEWS 01-22-02
08:59 AM |
