13:53 ET Borland (BORL) 11.95 +1.31 (+12.3%) : Surges in wake of morning news that it has teamed up with both NOK and SAPE.
While the stock has remain confined near the high for the last several hours, the limited pullback thus far is a positive.
13:25 ET Vitesse Semi (VTSS) 24.70 -0.34: -- Update -- Conference call to discuss acquisition at 5 pm ET: 888-273-9890.
13:21 ET RealNetworks (RNWK) 12.61 +1.61 (+14.6%): Previously there was speculation that AOL might replace its RealPlayer
program with Windows Media Player. However, given the weekend reports that talks between MSFT and AOL (whether AOL would be
included in Windows XP) had broken down appears has provided some relief that this will not take place.
13:18 ET Vitesse Semi (VTSS) 24.77 -0.27: Company announces agreement to acquire privately held Versatile Optical Networks for 10
mln shares of VTSS; says acquisition will be dilutive to EPS by roughly $0.02 per quarter for remainder of 2001. Versatile makes optical
switches, transponders, and transponder arrays.
13:09 ET Cisco Systems (CSCO) 19.57 +0.72: -- Update -- Reuters reporting that "sources close to Cisco" says that CSCO is not in talks
to buy Marconi (MONI 10.05 +0.05); as Briefing.com noted in its 7:41 comment, this deal did not make much sense.
12:46 ET General Cable (BGC) 16.40 +0.15: Company reaffirms Q2 EPS guidance of $0.41-0.42; also expresses confidence in ability to
achieve full year EPS estimate of $1.55 to $1.60, with an additional upside of $0.05 per share given the current interest rate environment.
12:37 ET Sector Watch: Biotech : Quiet trade persists with relatively little follow through in a top group today (oil service). However, the
biotech sector continues its steady march higher led by AFFX (+7.4%), VRTX (+7.9%), PDLI (+5.4%), BTGC (+6.9%) and IDPH
(+5.1%). A notable exception today is CORR (-6.5%) which announced a $175 mln note offering. Highlighted the index (BTK) after last
week's breach of its 200 day simple ma, now eyeing a four month high at 646.
12:31 ET Hewlett-Packard (HWP) 29.77 +0.52: -- Update -- Salomon Smith Barney comments on HWP ahead of analyst meeting on
Wednesday; says that given large consumer exposure and leverage to soft US and perhaps European corporate IT spending, the macro
outlook is tough; company-specific issues also challenging due to margin pressure associated with ramp in services organization and
investment, and a PC price war; says that its cautious NEUTRAL rating is warranted.
12:17 ET MyPoints.com (MYPT) 2.55 +0.95 (59.3%): Confined trading near the high has followed the buyout related surge (UAL unit
agreed to buy for $2.60 in cash). Stock had been highlighted in a May 10 brief. Competitor, Netcentives (NCNT +7.4%) has seen modest
interest.
12:11 ET Home Depot (HD) 49.32 +0.06: Merrill Lynch comments that competitor Payless Cashways filed for bankruptcy; Merrill
estimates that if HD can capture 1/3 of Payless sales, would add penny or two to earnings over time; also believes that vendors will have to
capitulate more to HD and that this should boost gross margins.
11:53 ET QLogic (QLGC) 50.03 -2.32 (-4.4%): -- Technical -- QLGC had been attempting to stabilize over the last two sessions
following last week's SUNW related decline. Today, however, it has broken firmly below a trendline off the April/May lows that had
provided support in the midst of the negative news. Short term, without gains back through resistance at 50.50 and 52 it will remain
vulnerable. Next supports are at 47.79 and 45.10.
11:47 ET Orbitz Launches : The travel site owned by American, Continental, Delta, Northwest and United Airlines launched today, but this
is having no impact on potential competitors: EXPE +2.32, TVLY +1.58, PCLN +0.15.
11:45 ET Computer Sci (CSC) 42.70 +0.30: There has been market speculation this morning of a bid for CSC from BA, LMT, or NOC.
Hearing that at least one brokerage firm is responding to the rumors by saying that NOC and LMT are unlikely to bid, but that a BA bid
might make sense -- would fit with BA's Connexion strategy and would be accretive by roughly $0.20/share based on a hypothetical
$50/share cash bid.
11:40 ET Pitney Bowes (PBI) 40.31 +0.69 (+1.7%): Earlier this morning HWP announced that it had agreed to pay PBI $400 mln to
settle a 1995 patent suit. HWP will record a $400 mln Q2 pretax charge to cover settlement costs and will revise financial statements for the
April qtr in an amended report by June 14.
11:38 ET Merrill Techfolio : Following this morning's downgrade of Capstone (CPST 30.93 -3.10), Merrill Lynch strategist Steve
Milunovich removes the stock from the firm's Techfolio and replaces it with AOL Time Warner (AOL 52.00 -0.75).
11:22 ET Check Point Sftwr (CHKP) 50.75 -4.42 (-8%): -- Update -- Technical -- Tests and holds above an important short term floor
at 49.45 (May 16 low). Very short term is oversold but sustained gains back through intraday resistances at 51.50 and the 53 area needed to
improve the tone today. |
