09:51 ET RF Micro Device (RFMD) 32.48 +0.78 (+2.5%): Company to hold conference call at 11ET to discuss strategic alliance with Agere Systems (AGR.A) to develop chips for the cellular market; dial-in number is 800-240-5318.
09:47 ET Tellium (TELM) : IPO priced at 15, the upper end of its initial range.
09:39 ET Comverse Tech (CMVT) 71.33 +2.97 (+4.3%): Company selected as the first non-Chinese vendor authorized to sell both voicemail and short message systems (SMS) to service providers in China.
09:37 ET Sector Watch : Mixed bag for the market indices and the sectors but the tone appears to be improving. Posting modest gains are networking, software, Internet, semiconductor, gold, retail and biotech. On the downside are healthcare, chemical, banking and energy.
09:37 ET Aremissoft (AREM) 13.28: -- Update -- Trading in stock has been halted.
09:36 ET Concord EFS (CEFT) 45.50 -0.3 (-0.7%): Files registration with the SEC for the proposed public offering of 24.4 mln shares of common stock. The shares to be offered include 19.2 mln held by the former owners of Star Systems, which was acquired by Concord in February.
09:26 ET CIENA Corp (CIEN) 58.90: -- Update -- Stock now slightly lower at 58.45 as Q&A segment of the conference call drags on; no additional significant news expected at this point. For Briefing.com's quick take on the call, see Story Stocks.
09:25 ET PeopleSoft (PSFT) 40.00: CSFB saying the sequential decline in deferred license revs revealed in last night's release of the10-Q should have been expected as PSFT has been warning investors that deferred license balance will trend down over time as they cleanse old contracting practices; LEH expects deferred license will reach a steady state balance of around $20-25M; rates stock a BUY.
09:24 ET Aremissoft (AREM) 13.28: Stumbles to $11 in pre-market on NY Times report that documents filed by the company with the SEC and comments by World Bank officials indicate that company may have substantially overstated the value of contract to overhaul Bulgaria's health information network. Also of concern is blind trusts used by two top executives to sell 10 mln shares of stk over the past yr.
09:16 ET Caterpillar (CAT) 55.91: Lehman cautious on stock as it sees declines in machinery demand, emerging softening in housing and reduced capacity utilization rates; firm continues to await negative preannouncement from CAT as guidance incorporates a 2H '01 economic rebound which is not visible to any other machinery companies; trims 2001 EPS ests. to $2.40 EPS from $2.52 EPS owing to expected pricing and margin pressures.
09:12 ET Tyco Intl (TYC) 55.70: Enters definitive agreement to acquire the electronic security systems businesses of Cambridge Protection Industries. The transaction is valued at approximately $1 bln.
09:08 ET Research In Motion (RIMM) 33.50: Research In Motion (RIMM) files complaint against Glenayre Electronics (GEMS) alleging patent and trademark infringement in connection with the development, marketing and sale of wireless handheld products.
09:03 ET CIENA Corp (CIEN) 58.90: -- Update -- Stock falls from +7% to -1% in a matter of minutes, dragging the Nasdaq futures (+11) along with it; while company's forecast of a 1 percentage point decline in gross margins is not earthshaking, vulnerability to "desperate" pricing measures by competitors is exposing the first chink in Ciena's armor.
09:01 ET Convera (CNVR) 5.04: Lazard Freres downgrades to HOLD from Outperform due to risks associated with the revision of its business model, customer reluctance to utilize the company's services and sales force execution issues.
08:59 ET CIENA Corp (CIEN) 58.90: -- Update -- Stock had been up as much as 4 pts pre-market, now down 1 pt. The reversal was triggered by the company's discussion of "desperate" pricing measures by competitors and likelihood of lower gross margins in the Jul qtr as a result.
08:57 ET Robt Half Intl (RHI) 30.11: Legg Mason downgrades to BUY from Strong Buy based on valuation; after a recent run-up in price, the shares now trade near $32 target price.
08:55 ET CIENA Corp (CIEN) 58.90: -- Update -- Expects EPS range of $0.15-0.18 for Jul qtr; consensus is $0.18. Stock quickly gives back earlier gains due to comments on pricing and gross margins.
08:53 ET CIENA Corp (CIEN) 58.90: -- Update -- Company guides gross margins down 100 bp in Jul qtr (were 45.6% in Apr qtr) due to what it calls "desperate" pricing measures by some of its competitors.
08:52 ET CacheFlow (CFLO) 8.40: Wedbush Morgan downgrades to LT ATTRACTIVE from Buy. Says CacheFlow remains well positioned, but faces some near-term challenges in cost control and protecting market share; recommend that investors keep a close eye on CFLO shares and use price weakness to establish positions.
08:49 ET CIENA Corp (CIEN) 58.90: -- Update -- On call, company says that it has a signed contract from Level 3 (LVLT) for its K2 product, which was part of the Cyras Systems acquisition.
08:46 ET StarMedia Ntwrk (STRM) 1.82: Goldman Sachs downgrades to MKT PERFORM from Mkt Outperform; lowers its 2001 revenue estimate by 33% to $72 mln from $108 mln to reflect slower expected growth in the online ad market in Latin America and reduced visibility.
08:43 ET FuelCell Energy (FCEL) 80.30: Friedman Billings Ramsey downgrades to ACCUMULATE from Buy based on valuation after stock surpassed $75 price target.
08:40 ET CIENA Corp (CIEN) 58.90: -- Update -- On call, company says that it had two 10% customers (customers responsible for 10% or more of revenues) in Apr qtr, both from North America; these two customers represented 52% of revenues.
08:40 ET Gapping Up : CIEN rallies 7% in pre-market after reporting better-than-expected quarterly results and reaffirming guidance. CIEN numbers igniting buying in several telecom/networking names: RBAK (+7%), JDSU (+5%), CORV (+4.5%), JNPR (+3.5%), SCMR (+3.5%), CSCO (+2%); other sectors to watch on heels of CIEN report include Comm IC and telecom test.
08:38 ET Innoveda (INOV) 3.10: Robertson Stephens initiates with a BUY and 6-12 month price target of $4.59; cites accelerating growth and profitability, blue chip customer base and strong management team.
08:34 ET Scientific-Atlanta (SFA) 59.50: Thomas Weisel Partners cautious on the name due to Q1 data for digital cable which holds signs of set-top box slowdown; reiterates MKT PERFORM rating with price target of $54.
08:33 ET Retek (RETK) 30.94: Expects to exceed analysts' expectations for Q2 of break-even EPS and revenues of $41 mln.
08:33 ET Biogen (BGEN) 60.28: ABN AMRO initiates coverage with an ADD rating and $80 price target. As a reasonably priced biotech concern with an emerging pipeline, Biogen is a good long-term value for biotech investors.
08:31 ET Arena Pharma (ARNA) 27.20: ABN AMRO starts coverage with a BUY rating and $40 price target. ARNA's Constitutive Activated Receptor Technology (CART) is a breakthrough technology that gives drug developers a tremendous advantage in developing new drugs. ARNA's technology is underpinned by a sound business model.
08:31 ET Initial Claims : Initial jobless claims for the week ended 5/12 fell 8K to 380K; economists were looking for an increase in claims for the week to 395K.
08:26 ET Diversa (DVSA) 15.75: Friedman Billings Ramsey initiates coverage with a BUY rating and $25 price target; believes the developer of novel enzymes will achieve yr/yr revenue growth of 50%; sees commercialization of 22 products by the end of 2004, up from 3 currently.
08:24 ET Informatica (INFA) 17.84: Goldman Sachs initiates coverage with a MKT OUTPERFORM rating; expects INFA to continue to invest more in development while improving operating efficiency throughout the rest of FY01.
08:22 ET Sprint FON (FON) 21.42: Hearing from sources at Morgan Stanley that the firm expects $200 mln of Sprint's $300 mln cut in capex to come from its web hosting build-out as Sprint indicates that the prospects for this business are unclear.
08:22 ET Opening Indications : Early enthusiasm persists in the futures market as the S&P futures, at 1294, are 6 points above fair value while the Nasdaq 100 futures, at 1933, are 27 points above fair value... CIENA's (CIEN 58.90) stronger than expected earnings report and Citigroup's (C 51.79) $12.5 bln acquisition of Mexico's Grupo Financiero Banamex-Acival (aka "Banacci") are among the developments drawing the most attention this morning.
08:15 ET Factory 2-U Stores (FTUS) 31.20: UBS Warburg upgrades to STRONG BUY from Buy based on an improved sales trend and confidence in management's initiatives for advertising and merchandising. Price target is $40.
08:13 ET Kopin Corp (KOPN) 8.65: Signs a multi-year contract to supply Indium Gallium Phosphide transistors to Anadics (ANAD) for advanced telecom solutions.
08:12 ET Agilent Tech (A) 38.50: CSFB cautious on Agilent ahead of earnings this afternoon; believes company will report results closer to CSFB's $0.20 estimate than consensus of $0.27 and says Q3 could be tougher than Q2 as backlog has either been drawn down or cancelled. Sees weakness in Communications Solutions Group, citing recent preannouncements by TEK and SPNUY.
08:06 ET AnnTaylor (ANN) 36.40: Bear Stearns upgrades to ATTRACTIVE from Neutral on valuation; recognizes that a turn in results might not be evident for six months, but believes bad news is out and that risk/reward over next 12 months is attractive.
07:59 ET Limited Too (TOO) 19.10: DB Alex. Brown upgrades to BUY from Mkt Perform; cites consistent performance, easier comparisons in the 2nd-half, attractive relative valuation.
07:54 ET UBS Starts Enterprise Networking Stks : UBS Warburg initiates coverage of the Enterprise Networking sector; starts Cabletron (CS 17.75) with a BUY rating and $22 price target; believes that investing in CS at current level provides a discount vehicle to owning recent spin-off Riverstone Networks (RSTN)... Firm initiates EXTR and FDRY with HOLD ratings.
07:54 ET Opening Indications : Indications for a positive open for the cash market remain intact as the S&P futures are 3.8 points above fair value while the Nasdaq 100 futures are 22 points above fair value... CIENA's (CIEN) stronger than expected earnings report, solid gains in overseas markets, and continued enthusiasm following yesterday's rally are acting as the main drivers behind the bullish leaning.
07:46 ET Pru Cuts HMOs : Prudential lowering its sector rating on HMOs to HOLD from Accumulate; feels that the marked shift to ASO and PPO products, combined with low brand loyalty, is accelerating medical costs and deteriorating the morbidity characteristics of the commercial insurance risk pool... Individual names downgraded were AET, HNT, OHP, and PHSY, each cut to Hold from Strong Buy.
07:38 ET Celera Genomics (CRA) 38.25: Article published yesterday in Nature challenged the accuracy of data in CRA's fruit fly database, finding discrepancies in 45% of the protein sequences tested. In note out this morning, UBS Warburg says it does not believe that these discrepancies reflect the overall accuracy of CRA's data; notes that public database used for comparison by authors of the study is known in the research community to be error-prone.
07:32 ET Art Tech Grp (ARTG) 9.41: Banc of America Sec. downgrades to MKT PERFORM from Buy, citing concerns over company's long term strategy and position in the market; believes that ARTG is moving away from its core market into a fragmented and competitive market with a complex message; placing too much emphasis on the importance of partnerships with hardware vendors.
07:24 ET Opening Indications : This morning's fair value figures -- S&P 500 fair value: 1288; closed even with fair value. Nasdaq 100 fair value: 1906; closed 9 pts below fair value. Current indications: S&P 500 futures are +4.3, or 4.3 pts above fair value. Nasdaq 100 is +35, or 26 pts above fair value... Nasdaq futures rally in reaction to CIEN report; company beats on top and bottom lines, while also maintaining growth forecasts for the yr (talk in market had been that CIEN would be less bullish in its outlook).
07:15 ET CIENA Corp (CIEN) 58.90: -- Update -- Current Chairman/CEO Patrick Nettles will assume role of Executive Chairman, focused on the long-term strategic direction of the company. CIEN promotes current Pres/COO Gary Smith to the Chief Executive Officer position.
07:11 ET CIENA Corp (CIEN) 58.90: -- Update -- Company's total revenue rose 129% to $425.4 mln, which compares favorably to consensus estimate of $405 mln.
07:08 ET CIENA Corp (CIEN) 58.90: -- Update -- Company still expects to achieve 2001 revenue growth of between 95%-105% and meet current consensus range of $0.72-$0.75 (mean $0.73), provided that company continues to successfully execute and macro economic conditions do not change dramatically.
07:06 ET CIENA Corp (CIEN) 58.90: Reports Q2 adjusted earnings of $0.20 a share, 4 cents above consensus, vs yr-ago EPS of $0.18. "CIENA's business has demonstrated remarkable resilience throughout these last several quarters of tightening macro-economic conditions."
06:53 ET Intel (INTC) 28.36: Intel announcing several wireless initiatives. Company to collaborate with British Telecommunications' wireless unit to develop applications and services for next-generation mobile Internet devices. Also unveils an experimental computer chip, "wireless-Internet-on-a-chip," based on a new process technology that combines the core components of cellular phones and handheld computers. Expects technology to give wireless Internet-access products extended battery life and greater processing power.
06:43 ET Citigroup (C) 51.79: -- Update -- Citigroup will apply to have its shares listed on the Mexican Stock Exchange; would make Citigroup the first international company to be listed on the exchange.
06:39 ET Citigroup (C) 51.79: Citigroup makes major buy in Mexico. This morning, company announced the acquisition of leading Mexican financial institution, Grupo Financiero Banamex-Accival (Banacci), for $6.25 bln in cash and another $6.25 bln in Citigroup stock. Citigroup expects the transaction to be accretive to earnings in the first yr.
06:32 ET AOL Time Warner (AOL) 53.04: In an SEC filing, company projects that its post-restructuring liability will be almost $1 bln, with much of the costs related to severance packages provided to laid-off workers.
06:07 ET U.S. Markets : S&P futures trading at 1287, 1.0 points below fair value, Nasdaq 100 futures trading at 1890.50, 15.5 points below fair value. The 30-year bond is up 6 ticks at 5.837%. The dollar is weaker against most of the major currencies.
06:06 ET European Markets : FTSE +1.25%, DAX +0.65% -- European stocks also boosted by yesterday’s rally on Wall Street. Portfolios shifting out of defensive names and into semiconductor, phone equipment and mobile phone shares. Blue-chips such as Nokia, Ericsson and Philipps all outperforming.. France Telecom and Deutsche Telekom boosted by news of a share offer for their stakes in Sprint.
06:06 ET Asian Markets : Nikkei +1.58%, Hang Seng +2.26% -- Asian stocks higher on the back of a follow the leader mentality surrounding the US. Export shares fare well across the region on hopes of that the US will resume its status as the consumer/importer of last resort. Japan up 1.58% with Toyota leading the way on favorable sales expectations going forward. Korea rose more than 4% with locals and foreigners scooping up blue-chip issues. Semiconductor shares led Taiwan higher, while technology also provided a boost for Singapore. |
