MARKET TALK: PeopleSoft Has Some Money Coming To It
26 Feb 12:07
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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12:07 (Dow Jones) Here's some interesting math: Goldman Sachs calculates that
while 44% of PeopleSoft's (PSFT) existing customers are live or migrating to
its PeopleSoft 8 product, the company has recognized only $355M, or 15%, of the
"total revenue opportunity" from the upgrade. Goldman estimates the company
could collect $2.5B in upgrade revenue, add-on sales and cross selling other
products over the next four years. Little wonder PSFT is on the firm's
recommended list. Shares up 3.2% to $30.92. (MLP)
11:54 (Dow Jones) Pru out with a note reiterating buy on Procter & Gamble
(PG). Says earnings outlook appears to be improving, with stronger sales and
cost control. P&G is becoming adept at improving its product mix, and gross
margin expansion should come partly on proprietary technology changes in
manufacturing. Price target is $95. Shares off 1.4% at $86.08. (TG)
11:45 (Dow Jones) Lehman looks for durable goods new orders to increase 3.0%
in January, on top of a 1.7% gain in December. New home sales should rise to
955,000, a slight increase from December's reading of 946,000. Sees claims
holding steady at around the 375,000 level in the Feb. 23 week. Help wanted
index probably rose a notch to 47 in January, from 46 in December. (MCG)
11:31 (Dow Jones) Is it March already? You know it's March madness in Philly
when Temple University head basketball coach John Chaney steps up to ring the
opening bell Friday, March 1, at the Philadelphia Stock Exchange. Joining
Chaney is Atlantic 10 Commissioner Linda Bruno. Let's hope the madness does not
spill over into the markets. (KT)
11:15 (Dow Jones) Pulte Homes (PHM) is forecasting revenue growth above 20%
annually, resulting in $10 billion in revenue, $620 million in net income, and
earnings of $10 a share in 2004. In January, Pulte reported revenue of $5.4
billion in 2001 compared with $4.2 billion in 2000, and earnings per share of
$5.99 versus $4.47 in 2000. It also forecast 2002 earnings growth of 13% to 17%
to between $6.75 and $7 a share as a result of recent order rates and
expectations for a strengthening economy. The company sees delivering between
38,000 to 42,000 domestic homes in 2004. In 2002, it sees closing 28,000
domestic homes, up 20% from 22,915 closings in 2001. Shares up 3.5% at $50.60.
(BC)
11:03 (Dow Jones) Salomon Smith Barney analyst Niraj Gupta says Hispanic
Broadcasting (HSP) represents compelling long-term growth with highly strategic
asset value, but its stock price is fully valued. The analyst downgraded the
stock to neutral from outperform based on valuation, while raising the 12-month
price target to $26 a share from $19. HSP off 0.4% at $25.84. (DDO)
10:57 (Dow Jones) The yen's weakness Tuesday is seen as a negative reaction
to early indications of the stimulus package due Wednesday. "It looks like some
kind of effort by the Japanese government to boost the Nikkei before
(financial) year end, so Japanese companies can report better results," said
Greg Salvaggio, vice president trading at Tempus Consulting. EUR is $0.8679;
USD/JPY is Y134.40; EUR/JPY is Y116.69. (JRH)
10:49 (Dow Jones) Goldman staying bullish on slot-machine makers and believes
expansion should drive earnings over the next few years. International Game
Tech (IGT) and Alliance Gaming (ALLY) should be biggest winners, firm says.
Also notes that, historically, gaming has expanded during weak economic periods
when local governments were facing budget deficits. Goldman sees expansion
happening, but there will not likely be firm legislation and/or the start of
the rollout of machines until late 2002 or most likely 2003. NY, PA, KY, and IN
will move fastest, Goldman says. (TG)
10:36 (Dow Jones) Sen. Robert Bird, D-W.Va., isn't the only lawmaker mad at
the Bush administration over it's fiscal 2003 budget proposal. Republican Sen.
Christopher Bond of Missouri threatens OMB staff jobs over Army Corp of
Engineers budget cuts, saying a good place to save money is by "eliminating the
positions at OMB" responsible for the Corp submission "since the Congress has
to totally rewrite it." The Army Corp is important to Bond's home state, which
borders the Mississippi River on the east side. (MHA)
10:27 (Dow Jones) July fed funds boosted by consumer confidence report, with
contract gaining more than 4 BP as rate-tightening expectations shift. Odds of
quarter-point total rate hike by end of June meeting now about 82% vs. roughly
100% Monday, says Merrill Lynch strategist. (SPC)
10:23 (Dow Jones) It's abundantly clear that Wall Street doesn't like those
confidence numbers. Major averages have retreated dramatically in the few
minutes since the release, which showed a surprising drop in confidence, not
something a shaky equities market and economy needs to be dealing with now.
After decent start, just four DJIA names are higher - H-P, United Tech, J&J,
and Wal-Mart. tech dominates the list of biggest losing sectors, and retailers
aren't too far behind. DJIA off 104 at 10042, Nasdaq Comp pulls back by 19 to
1750, and S&P 500 eases 7 to 1102. (TG)
10:15 (Dow Jones) Interesting news regarding eBay (EBAY) in the Pacific Rim.
It agrees to buy a Taiwanese internet auction site, marking its first expansion
into Greater China, but says it will pull out of Japan by the end of March. As
of late 2001, eBay was the top auction site in each of its 18 international
markets, excluding Japan, where competition has been fierce with Yahoo (YHOO)
Japan and Rakuten Inc. EBay shares off about 0.3% at $53.96. (CRW)
10:05 (Dow Jones) Consumer confidence unexpectedly slipped in February, and
present and future components also decayed. Conference Board's index fell to
94.1 in February from a revised 97.8 in January. Consensus estimate had been a
97.0 reading. Present situation index also fell to 94.8 from 98.1 in January,
and expectations fell to 93.6 from 97.6. This report is in large part
influenced by labor markets and employment, unlike University of Michigan,
which is more correlated with stock prices. (SV)
(END) DOW JONES NEWS 02-26-02
12:07 PM |
