MARKET TALK: Suit Pays Off For Perrigo
01 Feb 09:48
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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9:48 (Dow Jones) Perrigo (PRGO) received $7.8 million net of attorney fees
and expenses from settlement agreements with certain defendants of a civil
antitrust lawsuit. The company will record the pretax gain for the quarter
ending March 31, boosting its quarterly income by about $5 million, or 7 cents
a share. The suit was filed by Perrigo in August 1999 in Michigan against a
group of vitamin raw material suppliers alleging the defendants conspired to
fix the prices of vitamin raw materials sold to the company. Shares flat at
$12.90. (DL)
9:40 (Dow Jones) Solid-waste companies earnings are on shaky ground. Two days
after Republic Services (RSG) issued lower-than-expected 4Q earnings, industry
giant Waste Management (WMI) lowered its 4Q guidance, underscoring the impact
the slowing economy is having on wastes volumes. As if to separate itself from
the pact, Allied Waste Industries (AW) reaffirmed its 2001 guidance of $1.930B
and $1.940B of adjusted EBITDA early Friday. (CCW)
9:31 (Dow Jones) Lucent (LU) is seeking to force Global Crossing (GBLXQ) to
either assume or reject certain pre-petition contracts by Feb. 14. Lucent,
which provides communications networks and other goods and services to Global
Crossing under several contracts, said the company owes it far more than the
$31.36 million unsecured trade claim listed in Global Crossing's Chapter 11
petition. About $83 million of accounts receivable are already due and payable
under the contracts, Lucent said. Lucent also said there is work in progress
and goods and services provided but not yet billed under the contracts and
other purchase orders, which have a total estimated value of $40 million. (CM)
9:24 (Dow Jones) Investors Bank and Trust's Tim Mazanec suggests the fx
market will readthe jobs report as negative until further data come out, due
to the bigger-than-expected drop in nonfarm payrolls. But the dollar was
steadily losing ground against the European currencies well before the data,
and that pattern is continuing, with the dollar at intraday lows vs euro, Swiss
franc, pound. Look to ISM and Michigan at 10 a.m. for a more definitive
response. (JEN)
9:18 (Dow Jones) While the CEO of Symantec (SYMC) warns that valuations of
some of his competitors - which can range from 60 to nearly 100 times earnings
- are too rich, he maintains that Symantec is undervalued. Trading at about 27
times its 2003 earnings estimate, company officials argue that the shares
warrant a P/E closer to 35 times, given Symantec's leadership position. (MLP)
9:10 (Dow Jones) Morgan Stanley out with a January recap of retail specialty
stores. Overall, mall traffic looked weak in two malls visited, while Fall
inventories appeared depleted and level of clearance merchandise was low. Firm
sees same-store sales decline of 5%-7% for specialty apparel retailers in
January. Initial Spring merchandise looks good. Top picks are Abercrombie &
Fitch (ANF), American Eagle (AEOS), and Ross Stores (ROST). (TG)
9:01 (Dow Jones) Busy week on tap for House Financial Services Committee. On
Monday, panel's Capital Markets Subcommittee hears from SEC chief Harvey Pitt
and Enron (ENRNQ) Director William Powers Jr. Same subcommittee takes testimony
Tuesday from ex-Enron CEO Ken Lay and Arthur Andersen CEO Joseph Berardino. On
Wednesday, Treasury Undersecretary John Taylor testifies on Argentina before
committee's International Monetary Policy and Trade Subcommittee. (JCC)
8:49 (Dow Jones) There was a mix in industry job performance in January.
Manufacturing lost 89,000 jobs and there was a decline of 54,000 in
construction, possibly a reflection of more seasonal weather during the survey
week. Retail jobs rose by 62,000, possibly a sign that fewer temporary workers
were hired in the Christmas season, so, fewer than usual were laid off in
January, thus, the rise in seasonally adjusted retail payrolls. (JM)
8:48 (Dow Jones) ABN-Amro doesn't think Micron (MU) wants any part of running
Hynix's day-to-day operations, but instead wants to acquire assets at firesale
prices. While many on Wall Street think key to turning DRAM business around is
consolidation in industry, firm believes more important catalyst is slowing
down the rate of manufacturing cost decline. Says chance of significant
business combo with Hynix is "practically nil." Keeps hold rating. (TG)
8:41 (Dow Jones) The decline in unemployment rate was welcome, but it appears
a little strange. The labor force declined by 924,000 in January with a 587,000
decline in household employment and a 337,000 decline in unemployment. Swings
that large suggest that there may be more noise than insight in these data.
(JM)
8:35 (Dow Jones) Payrolls fell by 89,000 in January, but the unemployment
rate fell to 5.6% from 5.8% in December. The workweek, both in the overall
nonfarm sector and in manufacturing, shortened by 0.1 hour. On the whole a
mixed report, consistent with the start of a recovery. (JM)
8:32 (Dow Jones) A mixed report on the Jan. payrolls is leaving Treasurys, at
least so far, not far from where they were prior to the release. This one will
be a bit tricky to figure out. Two-year down 2/32, while 10-year lower by 4/32.
(MSD)
8:30 (Dow Jones) The biggest of the week's data are out this morning, perhaps
adding strength to the growing argument that the recession is over (of course,
by some measures it may not have ever started). Stocks look flat before the
readings, but Disney (DIS) should lend a hand to the Dow, having posted a solid
1Q. The folks over at AMR recently said their 1Q results were going to be ugly,
and that was certainly true for UAL's 4Q, and 1Q outlook. Finally, if you
believe in the theory that says as January goes so goes the year for stocks,
then majoraverages are looking at the rare scenario of three-straight losing
years. Treasurys easing. (TG)
(END) DOW JONES NEWS 02-01-02
09:48 AM |
