PacificHealth Labs (PHLI) 4.23 +0.78: Announces it has entered into an exclusive license agreement with GlaxoSmithKline (GSK) for
Satietrol, the company's new weight loss product; agreement provides GSK with worldwide rights to the trademarks, technology, patents,
and know-how for Satietrol; under agreement, in addition to product royalties, PHLI will receive an initial payment of $1,000,000 and other
milestone payments over the next two years if GSK meets certain development goals; see press release.
Tele Leste Celular (TBE) 42.50 -0.60: Bear Stearns downgrades to ATTRACTIVE from BUY because recent rally has put the stock
above firm's year-end price target of $40; says TBE's fundamentals continue to improve, but believes it is largely priced in at current levels;
the only catalyst left for the stock is the expectation of a tender offer by Telefonica Moviles.
Orion Power (ORN) 26.94 -0.06: Banc of America initiates coverage with a BUY rating and price target of $39; says Orion is a leading
player with a track record of significant growth; company's project portfolio offers a number of positive characteristics.
Host Marriott (HMT) 12.69 -0.21: Prudential downgrades to HOLD from BUY and lowers price target to $14 from $16; says demand
in the second quarter has been exceptionally weak, and there is little visibility on a second half rebound; reduces estimates for 2001 and
2002 to $2.00 and $2.12 from $2.09 and $2.26, respectively.
FelCor Lodging (FCH) 23.70 -0.17: Prudential downgrades to HOLD from BUY and lowers price target to $27 from $31 to reflect
weak demand trends in the lodging industry in the second quarter and a reduced RevPAR growth rate for the full year; reduces 2001
estimate to $4.25 and 2002 estimate to $4.55.
09:30 -- 10:00 ET (Updated throughout the hour)******
Mattel (MAT) 18.21 +0.30: USB Piper Jaffray upgrades to STRONG BUY from BUY as firm says that turnaround and confidence are
gaining momentum; increases FY02 EPS to $1.00.
Ticketmaster (TMCS) 15.14 +0.93: Salomon Smith Barney upgrades to BUY from OUTPERFORM; says the merger of TMCS's
offline business into the TicketmasterCitysearch Internet business should allow a more unified growth strategy to emerge, with immediate
EBITDA and earnings benefits; Online ticketing represents 30% of TMCS's ticketing volume; believes the merger and innovations like
home ticket printing should help propel Online toward 45% of volume in time.
Profit Recovery (PRGX) 10.03 +0.07: JP Morgan upgrades to long-term BUY from MARKET PERFORM; with the core business
stabilizing and a number of potential catalysts on the horizon, firm thinks PRGX now represents a compelling opportunity for long-term
investors; says potential catalysts for the stock include a solid Q2, a reaffirmation of 2001 guidance, and the sale of its noncore businesses.
BEFORE THE OPEN (Updated throughout the hour)******
Computer Sci (CSC) 42.40: Announces that it has entered into a $240 mln information technology (IT) outsourcing contract with
Schroders, an independent asset management company; the 7-year agreement calls for CSC to manage infrastructure and application
services, including desktop computing, help desk, mid-range and voice services, and certain applications development and support; see
press release.
Sara Lee (SLE) 19.19: Announces that it has sold its U.K. bakery business to Dublin-based Hibernia Foods PLC; financial terms of
the transaction were not disclosed; for fiscal year ended June 30, 2000, Sara Lee's U.K. bakery business generated sales of approximately
US$75 mln; see press release.
Nu Horizons Elec (NUHC) 11.15: Distributor of components and provider of industrial manufacturing services warns Q1 (May) revenues
will be $100-105 mln, current estimate $117 mln; continued industry-wide softness in demand will result in a sequential decline in revenues
from Q4 (Feb); company previously warned of lower than expected revenue for the quarter on April 25 when releasing Q4 results; see
press release.
Capstone Turbine (CPST) 34.03: Merrill Lynch downgrades to near-term ACCUMULATE from near-term BUY; says Capstone
continues to ramp up production and sales, and the California power crisis continues to drive strong interest in microturbines; however,
competition from incumbents such as Caterpillar is stiff; CPST's technology is new, and while interest is strong, firm senses adoption is
slower than expected; firm notes that CPST's product works, but in a crisis, people tend to first go with what they know; CPST is just
beginning to get "known," and it needs more big-name channel partners like Cummins; firm sees the ramp up and earnings picture shifting
out a year or so.
Sunoco (SUN) 39.43: Manufacturer of petroleum and petrochemical products issues upside preannouncement for Q2 (Jun);
expects $1.75-2.25 per share, current First Call estimate is $1.63; refining margins for April and most of May were exceptionally strong;
company also announces that it expected to have fully utilized its remaining $150 mln share repurchase authorization by the close of
the quarter; see press release.
W-H Energy (WHES) 29.80: Oilfield service company issues upside preannouncement for Q2 (Jun); expects $0.40-0.42 per share,
current First Call estimate is $0.36; cites continuing improvement in the demand for the company's products and services, as well as the
impact of the acquisition of Coil Tubing Services which closed on May 31; see press release.
Georgia-Pacific (GP) 35.40: Announces definitive agreement for Domtar (DTC) to acquire a portion of Georgia-Pacific's pulp and
paper assets for $1.65 bln in cash; Georgia-Pacific will use proceeds from the sale to repay debt, and sale is expected to be completed
early in third quarter 2001; see press release.
Valero Energy (VLO) 44.73: Nation's second largest independent refining company issues upside preannouncement for Q2 (Jun);
expects earnings to exceed $4.00 per share; previous guidance for the quarter had been $3.25-3.75, current First Call estimate is $3.24;
refined product margins and discounts for key sour crude feedstocks have improved to record levels; see press release.
Applied Micro (AMCC) 18.68: Morgan Stanley initiates coverage with a NEUTRAL; says AMCC is closer to the bottom, but believes
the EPS trough may be deeper and last longer than generally anticipated; with an optimistic long-term, firm looks for an improvement in
visibility and/or valuation to mark its entry point.
Amer. Xtal Tech (AXTI) 26.45: Semiconductor materials company warns Q3 (Sep) will be $0.07-0.10 per share, current First Call
estimate is $0.22; revenue will be $27-31 mln, current estimate is $40 mln; estimates are unchanged for Q2 (Jun); early visibility, due in part
to company's Supply Guarantee program, indicates Q3 order cancellations; see press release.
MyPoints.com (MYPT) 1.60: Internet direct marketing and membership services company announces it has agreed to be acquired by
United NewVentures, a wholly owned subsidiary of UAL Corp (UAL); under terms of agreement, United NewVentures will offer $2.60
per share in cash for all outstanding shares of common stock of MyPoints; see press release.
EarthLink Ntwrk (ELNK) 13.31: Goldman Sachs initiates coverage with a TRADING BUY as firm expects that a $2 price increase on
the basic service by the beginning of 2002 could boost 2002 EBITDA to $95mm (up from $25mm w/o increase) and, firm believes that
this, combined with steady progress towards positive EBITDA by year-end will serve as catalysts for the shares; longer term, firm views
ELNK as a cash flow story (vs. high growth) with low-teen top line growth and 50%+ cash flow growth (increasing to $250mm by 2005).
Cypress Semi (CY) 21.60: Chip maker warns Q2 (Jun) will be $0.00-0.02 per share, current First Call estimate is $0.03; expects
revenue of $175-185 mln, current estimate is $198 mln; business conditions have not materially improved in the market segments that the
company serves; see press release.
Pitney Bowes (PBI) 39.62: Provider of integrated mail, messaging and document management solutions and Hewlett-Packard (HWP)
announce agreements which settle litigation between the companies; under terms of agreements, the companies resolved all pending
patent litigation without admission of infringement, and HWP will pay Pitney Bowes $400 million in cash; see press release.
Thoratec Labs (THOR) 11.55: Medical device company says it has received FDA approval to market the company's TLC-II Portable
VAD Driver in the U.S.; TLC-II is a device used to power the Thoratec Ventricular Assist Device (VAD) which pumps blood to the body
in heart failure patients awaiting transplants or recovering from open-heart surgery; see press release.
Yahoo! (YHOO) 19.46: SG Cowen upgrades to NEUTRAL from SELL; firm says extensive channel checks with advertisers/agencies
indicate that budgets have stabilized; believes YHOO will make its Q2 results and will indicate better H2 visibility; says Q3 will still be
seasonally weak, but Fortune 500 ad dollars are starting to flow.
Bob Evans (BOBE) 18.25: Reports Q4 earnings of $0.34 a share, $0.02 worse than the First Call consensus of $0.36, vs year-ago
earnings of $0.31; revenues rose 5.2% to $251.46 mln from a year-ago of $238.97 mln; management says increased costs in restaurant
segment put pressure on margins, and in food products segment, a decline in comparable pounds sold for the quarter and higher hog costs
at the end of the quarter impacted operating income.
AFTER THE CLOSE (01-Jun-01)******
Nanophase Technologies (NANX) 11.81 +0.26: Announces it will not proceed with a proposed exclusive strategic relationship
with a European company for development, manufacture, and marketing of an environmental catalyst incorporating Nanophase's proprietary
nanocrystalline materials to be utilized as a catalytic fuel additive; expects the revenue impact to Q2 to be about $500,000, resulting in
anticipated Q2 revenues of $1.1-1.2 mln, roughly equal to Q1 revenues; expects Y01 revenues of $7.5-8.0 mln vs previous guidance $10
mln; see press release.
Genzyme Transgenics (GZTC) 7.30 -0.54: Announces adoption of a Shareholder Rights Plan. Shareholders will receive as a
dividend one right for each share of common stock held; see press release.
Powerwave Tech (PWAV) 13.84 +0.24: Announces a Stockholder Rights Plan under which all stockholders of record as of the close
of business on June 18, 2001, will receive a distribution of rights to purchase shares of a newly authorized series of preferred stock; see
press release. |
