09:12 ET Gapping Up/Down : LDCL +25% (beats qtr, Morgan Stanley upgrade); MFNX +25% (secures vendor financing paving way for additional funds)... Gapping Down: BVSN -14% (being removed from the S&P 500); SUNW -13% (estimates being slashed due to cautious outlook); INET -6% (WR Hambrecht downgrade); MERQ and VRTS off 5.5% in reaction to Goldman estimate cuts.
08:55 ET Weisel Cuts PCBs : Thomas Weisel Partners downgrades printed circuit board companies: reduces TTMI to MKT PERFORM from Strong Buy and cuts FY02 estimate to $0.47 from $0.55, cites increasing competitive pressures; also downgrades MERX to BUY from Strong Buy and cuts FY02 to $0.40 from $0.60, citing valuation.
08:49 ET JPM on China Networking : JP Morgan believes yesterday's speculation about a halt on Chinese metro ethernet deployments is wrong, thinks that source of speculation was the China Ministry of Information Industry's ordering of a halt in metro builds by "unauthorized" carriers, and that MII and China Telecom remain committed to the metro network; believes RSTN is safest play.
08:42 ET Corning Inc (GLW) 14.60: -- Update -- Sources telling that SoundView Technology downgrades GLW to HOLD from Buy; says a recovery of any magnitude in 2002 is unlikely, and slashes FY02 EPS estimate to $0.20 from $0.68.
08:42 ET Celestica (CLS) 37.76: May experience some fallout from Sun Micro warning. In comment out of DB Alex. Brown this morning, firm notes that CLS is a large customer of SUNW; thinks street estimates will need to come down.
08:34 ET CSFB on Networking : CSFB responding to several stories that we noted on In Play yesterday; says Cisco's (CSCO) news about competitor trade-in policy is not necessarily good, and may indicate that discounting is not affecting volume sales; also notes China Telecom is probably slowing capex, but companies such as FDRY, EXTR, and RSTN did not expect much from this source; finally, WCOM capex cuts are another datapoint emphasizing gloomy demand, but this is not new news.
08:13 ET Corning Inc (GLW) 14.60: -- Update -- CSFB adjusting numbers after GLW warns that 2001 fiber volume growth will be significantly below the 15% it had previously guided to; FY01 cut to $0.77 from $0.92 and FY02 to $0.30 from $0.71 (rev. to $4.9 bln from $7.6 bln)... expects pricing declines on the order of 25%-35% similar to those seen in fiber downturns in '89, '92, '97.
08:00 ET ONI Systems (ONIS) 14.60: Goldman Sachs comments on ONIS after a bus tour yesterday; says company is still very upbeat, company has strong near-term visibility and appears to be comfortable with guidance.
07:38 ET Taiwan Semi (TSM) 12.55: According to Prudential, it appears that company is seeing a modest wafer start improvement in the SeptQ, with August's book to bill better than 1.0 (vs July level of 1.0).
07:11 ET Riverstone Ntwrks (RSTN) 10.68: Company files a breach of contract suit against Tellabs (TLAB) for failing to make minimum purchases pursuant to strategic alliance agreement between the companies. "Today's announcement does not affect Riverstone Networks' previously stated forward-looking guidance." RSTN will hold a conference call at 9ET: 800.218.4007. |
