The Motley Fool's Market Movers (Ups)
The Motley Fool - July 07, 1998 12:56
July 7, 1998/FOOLWIRE/ -- United Airlines parent UAL Corp. (NYSE:
UAL) took off this morning, rising $3 3/16 to $87 5/16 after the world's
largest airline announced it expects second quarter earnings to be above
expectations of $3.03 per share and full-year EPS to exceed analysts' mean
estimate of $10.34. The boost in earnings comes on the back of strong
business in the U.S. and Europe, as well as lower operating expenses.
United's total scheduled revenue passenger miles (RPMs) increased 3.6% in
June from the same year-ago period.
McDonald's Corp. (NYSE: MCD) gained $1 1/4 to $74 3/4 after Morgan Stanley
Dean Witter reiterated its "strong buy" rating on the fast-food giant with a
price target of $83 to $85 a share. Morgan Stanley said it expects the
company to disclose potential savings from corporate overhead reductions of
about $0.10 a share as early as next week.
N2K Inc. (Nasdaq: NTKI) tacked on $2 13/16 to $24 3/8 after announcing a
long-term agreement that makes its online music store Music Boulevard
(www.musicblvd.com) the exclusive music vendor for search engine and portal
company Infoseek Corp. (Nasdaq: SEEK). Music Boulevard will provide all of
its online music content, community, and commerce benefits to Infoseek
users.
Electronic program guide technology company Gemstar International Group
(Nasdaq: GMSTF) gained $7/8 to $43 3/8 after satellite program promotion
services company United Video Satellite Group (Nasdaq: UVSGA) announced it
has offered to acquire Gemstar for about $2.8 billion, or $45 per share, in
cash. The bid represented a roughly 50% premium over the closing price of
Gemstar when the offer was first made on March 13. According to United
Video, Viacom Inc. (AMEX: VIA), which owns a 6% stake in Gemstar directly
and through its Spelling Entertainment Group (NYSE: SP), has agreed to vote
in favor of the proposal.
Biotechnology company Miravant Medical Technologies (Nasdaq: MRVT) shot up
$6 to $27 after announcing that the Food and Drug Administration has granted
fast-track status to its Purlytin drug, which is designed to be used in the
PhotoPoint procedure for the treatment of age-related macular degeneration,
the leading cause of vision loss in older adults.
Utility software maker Symantec Corp. (Nasdaq: SYMC) picked up $2 9/16 to
$24 7/8 after announcing that its fiscal Q1 EPS will be $0.40 before
one-time charges, in line with estimates. The company said revenues will be
$153 million.
Internet software developer Inktomi Corp. (Nasdaq: INKT) climbed another $7
5/8 to $81 1/4 after yesterday's news that Goldman Sachs started coverage
with a "market outperform" rating and Hambrecht & Quist assigned the firm a
"buy" rating. Both brokerage firms were underwriters for Inktomi's June 10
initial public offering.
Impotence treatment systems developer Vivus Inc. (Nasdaq: VVUS) was lifted
$2 1/16 to $8 15/16 after Paine Webber upgraded its rating on the company to
a "buy" from "neutral."
Broadband data services provider Advanced Radio Telecom (Nasdaq: ARTT) rose
$1 1/2 to $10 after announcing an agreement by which it will market Internet
faxing company .comfax's domestic and global Internet fax services to
businesses that use its Internet products.
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