THE BULL MARKET REPORT DAILY for the WEEKEND, AUGUST 14-15th, 1999 - PART TWO
Date: 8/14/99 5:44:55 PM Eastern Daylight Time
From: bullmkt58-owner@listbot.com (The Bull Market Report)
To: (List Member)
The Bull Market Report - bull-market.com
---PART TWO---
$$$$$ IDT CORP. EXPANDS TO SOUTH AMERICA
IDT CORP (IDTC) has agreed to buy a 10% stake in TELEFONICA's Sam-1 Latin American underwater cable project. The agreement commits IDT to acquire at least $100 million of capacity on the Sam-1, which will help it meet growing demand for communications between the U.S. and Latin America.
COMMENT: When you buy a share of IDTC you are getting a stake in Net2Phone (NTOP) worth about $16 a share. Since IDTC closed at this same price, you are getting the rest of the firm for nothing. This is what is
called a No-Brainer. You should tell your friends about this one paragraph. First of all you will be a hero to them; secondly, we would LOVE to have you AND your friends as subscribers; and thirdly, YOU can get a one month extension to your own subscription! Click here to tell a
friend:
bull-market.com .
And THANX!
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$$$$$ IPO DEPARTMENT - SOME ISSUES POSTPONED
Out of the 17 issues that are expected to come to the market next week, 11
of those are Internet-related. At least five companies have decided to
sit out the recent market volatility and postpone their initial public
offerings this week, signaling what could be a move toward a healthier IPO
market.
Comment: We like.
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$$$$$ NEXTEL TO ATTEMPT TO BUY NEXTWAVE SPECTRUM
Nextel Communications (NXTL) has reached agreement with the United States
Department of Justice and the Federal Communications Commission, and
received their endorsement of Nextel's contemplated plan to obtain the
spectrum that currently is entangled in the NextWave Personal
Communications, Inc., voluntary bankruptcy proceedings.
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$$$$$ SCHWAB REPORTS MUCH HIGHER ACTIVITY
SAN FRANCISCO, Aug. 12 /PRNewswire/ -- The Charles Schwab Corporation
released its Monthly Market Activity Report today. Highlights include:
* Customer daily average revenue trades were 148 thousand in July 1999, up
19% from June 1999 and up 44% from July 1998.
* Net new assets brought to Schwab by new and current customers in July
1999 totaled $8.9 billion.
* Customer assets at Schwab were $587 billion as of month-end July, up 37%
from July 1998.
COMMENT: Bigger and better; bigger and better.
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$$$$$ FIDELITY INVESTMENTS AND FRIEDMAN BILLINGS RAMSEY ANNOUNCE
STRATEGIC ALLIANCE
Company Press Release
Fidelity Investments and Friedman Billings Ramsey Announce Strategic
Alliance
BOSTON--(BUSINESS WIRE)--Aug. 12, 1999--
Fidelity to Participate in Distribution of Securities
Underwritten by FBR; FBR to Expand Range of Products Currently
Available to Fidelity Customers; Alliance to Benefit Issuers
in Broad Range of Industries
Fidelity Investments©, the nation's second largest discount brokerage
firm, and Friedman Billings Ramsey Group, Inc. (FBR), one of the nation's
largest underwriters of initial public offerings, today announced a
strategic alliance in which Fidelity will participate in the distribution
of securities underwritten by FBR.
Under the alliance, FBR will invite Fidelity to participate as a selling
group member in selected offerings underwritten by FBR. Initially, the
two firms will focus their efforts on certain industry sectors which make
up FBR's core research and underwriting capabilities and include
technology, real estate, regional banks, thrifts, specialty finance
companies, energy and healthcare. In the future, both firms may explore
potential business relationships in other business areas, including asset
management, research and electronic trading of securities.
``This strategic alliance allows us to distribute our proprietary content
through Fidelity's established distribution channel in addition to our own
fbr.com, and further enhances our ability to make IPOs accessible to a
broad range of customers,' said FBR Chairman and CEO Emanuel J. Friedman.
Mr. Friedman continued, ``For corporate finance clients, this alliance
brings the power of fbr.com and the established distribution capabilities
of Fidelity to these industries.'
Fidelity Brokerage Services has 2.8 million online retail brokerage
accounts, with approximately $461 billion in assets. As of June, more
than 49,000 of the 78,500 trades made each day by Fidelity brokerage
customers were transacted online, and some 78 percent of all equity trades
were made over the Internet.
Fidelity Brokerage Services, Inc. offers its customers access to a full
range of securities, IPOs and other public offerings; mutual funds;
substantial commission savings; low margin rates; extensive independent
research; a variety of cash management services and consolidated statement
reporting.
Fidelity Investments is the nation's largest mutual fund company and a
leading provider of financial services. Fidelity offers investment
management, retirement, brokerage and shareholder services directly to
individuals and institutions, and through Fidelity intermediaries. The
firm is also the No. 1 provider of 401(k) retirement savings plans, the
second largest discount brokerage firm and the third largest provider of
403(b) plans for not-for-profit institutions. At June 30, 1999, Fidelity
had total managed assets of $856.7 billion.
For the whole article, click here:
biz.yahoo.com
COMMENT: This news is bigger than big and subsequently the stock was up
40% for the week. We can see $20 within 12 months if this partnership is
successful. Perhaps even higher.
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$$$$$ THE GAP Q2 EPS UP 47% ON SALES GAIN OF 29%
SAN FRANCISCO--(BUSINESS WIRE)--Aug. 12, 1999--Gap Inc. (GPS ) today
reported record sales and earnings for the fiscal second quarter, which
ended July 31, 1999. Second Quarter net sales increased 29% to $2.45
billion compared to $1.91 billion in 1998. Comparable store sales grew
8% compared with a 19% increase last year. Net earnings increased 43% to
$196 million, from $137 million last year. Earnings per share grew 47% to
$0.22 from $0.15 last year.
Further news - BancBoston Robertson Stephens is reiterating their Buy
rating on The Gap following the company's announcement of strong second
quarter results. The company reported earnings-per-share of $0.22, an
increase of 46 percent over the same period last year and $0.01 ahead of
our $0.21 estimate.
The firm is highly confident in their current fiscal 1999 and fiscal 2000
earnings-per-share estimates of $1.21 and $1.47, respectively, and believe
there is further upside to these estimates based upon continued
merchandise strengths and significant square footage and Internet growth
opportunities.
COMMENT: They do it every quarter. Hi-tech? Who needs it? Just buy The
Gap.
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$$$$$ TEXAS INSTRUMENTS PRICE TARGET RAISED
Deutsche Bank Alex. Brown raised the 12-month target price on shares of
TEXAS INSTRUMENTS to $185 from $161. They said the company is enjoying a
robust wireless market that is not anticipated to slow up in the
foreseeable future, while their disk drive market has improved
substantially. DB Alex also said it expects that in the second half of
1999 Texas Instruments will become increasingly involved in the digital
subscriber lines -- delivering high-speed Internet service over regular
telephone lines.
COMMENT: We like TXN ($150, up 5) and would purchase the stock in
aggressive accounts. A few large Wall Street firms have $200+ price
targets in place. Stock split next week.
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$$$$$ ALTAVISTA DELIVERS FREE NET ACCESS
by Frank Barnako CBS MarketWatch
Internet search site AltaVista Co. launched nationwide free Internet
access dial-up service. "This is a major industry shift," said AltaVista
CEO Rod Schrock. "It will play out over the next two to four years as the
cost of providing Internet access comes down, it's inevitable there will
be free services. We're the first, but there will be others." The free
software can be downloaded from the AltaVista site. "Prior to today, a
service like America Online could charge a premium of a couple dollars
over most flat rate Net access services," Schrock told
CBS.MarketWatch.com. "Now you have to ask, 'Can you do that over the long
haul when you're charging $22 dollars more?' "
Schrock said his Free Access service has been in testing since July, and
gained 45,000 users. "They tend to use Alta Vista services and the site
eight times more frequently than the average user," saying that increased
traffic and "stickiness" should translate into revenues from sponsorships,
advertising and e-commerce. Schrock also said AltaVista is on a "90 day
countdown" to unveiling a new Web site featuring many services and
elements from the company's partner, CMGI. For the whole story go to CBS
MarketWatch.com at:
cbs.marketwatch.com
COMMENT: We are watching this story and its effect on AOL, Microsoft, CPQ
(which owns AltaVista), and others. This could be a very big development
affecting many firms.
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$$$$$ WEB AD SALES TO CLIMB, RATES TO FALL
Online advertising sales in the United States will rise to $22 billion by
2004, outpacing the total dollars spent on magazines, yellow pages and
radio, according to a Forrester Research study of 50 companies. Higher
consumer usage of the Web will also "create excess ad inventory, lowering
CPM rates and making Web advertising more cost-effective and accessible to
new marketers," the market researchers said. The compound annual growth
rate for Web advertising will be 51 percent growth of online retail, she
added. Assuming Forrester's estimate is right, online advertising would
account for eight percent of all ad expenditures, the researchers said.
COMMENT: This has GOT to be good for Doubleclick (DCLK) and 24/7 Media
(TFSM), AND every company doing business on the Internet!
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$$$$$ WIRELESS AND CELLULAR DEPARTMENT
The latest cellular subscriber results reported out of Italy earlier this
week showed Telecom Italia Mobile SpA (TIM), Europe's largest operator,
maintaining a healthy lead on principal rival Omnitel Pronto Italia. TIM
claimed a base of slightly more than 16.5 million subscribers at the end
of July, good enough for a 65 percent share of the Italian market.
Omnitel reported its end-of-July base at 8 million subscribers, with
GSM-1800 newcomer Wind Telecomunicazioni SpA recently cracking the 500,000
barrier for customers. TIM's 1999 additions worked out to 2.2 million
through July (including 480,000 for July alone), whereas Omnitel's adds
equated to about 1 million for the year. Meanwhile, short messaging
traffic volumes over its network continues to grow at a prodigious pace,
according to TIM.
COMMENT: These are HUGE numbers. 2.2 million NEW phones in Italy alone,
so far this year? Wow. We bring this news to you so that you can focus
on HOW BIG this market will become around the world in the future. And
WHO will be prospering from this growth? Qualcomm (QCOM), Nokia (NOK -
$86), and Ericsson (ERICY - $31). Wait until you can get the Internet on
your cell phone and rates are 5 cents a minute, or less!!!!
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$$$$$ E*TRADE WAS DEALER IN IPO OF PACKETEERINC
MENLO PARK, Calif., Aug. 13 /PRNewswire/ -- E*TRADE Group Inc. (EGRP )
today announced that its securities unit participated as a dealer in the
initial public offering of Packeteer Inc. (PKTR). The offering was for
4,000,000 shares of Common Stock at a price of $5 per share. The stock
closed at $28 on Friday.
COMMENT: This is the beginning of a flood, ladies and gentlemen!
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$$$$$ READ THE BULL MARKET REPORT ON THE PALM PILOT
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