For Group: S&P Marketscope(independent research) Comments on some stocks followed in this group. One comment is on a stock I own JDSU, not sure they are correct in analysis, but post it anyway, along with others may not agree with. No need to agree with or even comment on, because it is still good to know what is being said about our holdings:
12/14/01 03:55 pm EST... DOWNGRADING CABLE & WIRELESS ( 14.47***) TO HOLD, FROM ACCUMULATE... S&P revised 's credit outlook today to negative, from stable (current rating "A")... Up to 15% share buyback, a special dividend, and proposed Exodus and PSINetin Japan acquisitions to reduce cash on hand over 60%... Continued softness in Internet Protocol and Web Hosting markets provides limited prospects for co.'s Global Markets division... 2nd half Global Markets revenue expected to decline 5% YOY... While downside limited by share buybacks, see little new impetus for value creation beyond current plans. /C.Shere,CFA
12/13/01 10:50 am EST... REITERATE SELL YAHOO ( 17.8*) AS ANNOUNCES HOSTILE BID FOR HOTJOBS... offering $436 million in cash/stock for HotJobs.com, which in 6/01 agreed to be acquired by TMP Worldwide, owner of Monster.com... Monster/HotJobs transaction would combine top 2 players in online career services.. when announced, it exceeded 's pending offer... However, 's current offer more than TMP's, and antitrust concerns loom as to Monster/HotJobs combination... Regardless of L/T potential of /HotJobs deal, believe possibility of bidding war and execution risk makes even less attractive over near term. /S.Kessler
12/12/01 01:20 pm EST... CONTINUE TO BUY CALPINE ( 12.7*****)... Shares down again, over 20% today, on fears of California power contract re-negotiations and potential liquidity crunch from debt due in '02... With likely lower near-term prices on California power contracts, and spot power-generation margins soft amid weak economy and warm weather, reducing our '02 EPS estimate to $2.00, from $2.53.. Funding needed for new plant development, but 's existing fleet yields strong free cash flow.. No comparison to trading-maverick Enron... While market panic presents risks, very cheap at 6X our '02 estimate. /C.Shere-CFA
12/10/01 09:50 am EST... REITERATING HOLD ON JDS UNIPHASE ( 10**), AS CO. OFFERS NEGATIVE PREANNOUNCEMENT FOR MARCH-Q... This morning, although affirmed December-Q revenue guidance 10%-15% below previous quarter, co. said March-Q revenue would be 10%-15% below December-Q... Prior forecast was for March-Q revenue to increase sequentially.. Co. now believes low point in sales during current downturn will occur in March-Q, vs. our previous expectation before end of 2001... Putting our per-share estimates under review with likely downward bias... Given unfavorable news, we're maintaining avoid recommendation. /A.Bensinger, S.Kessler
12/07/01 09:35 am EST... STILL AVOID INTEGRATED DEVICE TECHNOLOGY ( 27**)... Warns that Dec-Q revenues headed down 15%-20% from Sep-Q, worse than 3% rise we modeled... Cites weak business conditions in Europe and Japan... Revenue pace slower than customers' slowdown, implying strong drawdown of chip inventories... Expect revenue to pop higher when inventories clear in mid-'02... Looking for slow recovery in chips for wireline communications in '02, slower than for analog, wireless, PC chips... Share buyback expanded... Reviewing our estimates of $0.07 loss in FY 02 (Mar.), EPS of $0.55 in FY 03 for likely trim. /T.Smith-CFA |
