MARKET TALK: Williams News Is...Possible Delisting
01 Mar 14:53
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
2:53 (Dow Jones) Williams Communications (WCG) said Monday it may file for
bankruptcy protection, but it's the possibility of delisting, rather than new
developments on the bankruptcy front, that explains the halt in trading of its
stock all day. Williams Communications shares have an average closing price of
less than $1 for 30 consecutive days, triggering a review by the NYSE. (CBN)
2:37 (Dow Jones) Recent economic data have J.P. Morgan so pumped about an
economic recovery that the firm raised its earnings estimates and price targets
for three manufacturing companies: Honeywell (HON), United Technologies (UTX)
and SPX (SPW). Also well positioned to benefit from an economic upturn is GE,
says analyst Don MacDougall, who "revised" his 2002 and 2003 EPS estimates for
GE to $1.67 and $1.83 a share, respectively, from $1.65 and $1.82. GE is up 70
cents to $39.20. (CCW)
2:25 (Dow Jones) Arthur Andersen is assuring its clients that neither the
quality of its audits nor the firm's viability are at risk because of the
collapse of Enron (ENRNQ). With many public companies in the process of making
annual decisions on whether to renew the employment of their auditors (Merck
(MRK) just pulled the plug on the firm after about 30 years), Arthur Andersen
has found itself, formally and informally, meeting with clients to offer
reassurances. "They (clients) generally want to hear our side of it," Andersen
spokesman Charlie Leonard says. "Clients are most concerned with wanting
confirmation that the team they know and trust won't be impacted by these
matters." (RG)
2:14 (Dow Jones) It will be light on the equity issuance front next week,
with just one IPO almost certain to be a yawner: a $108 million IPO from Greek
shipping company Tsakos Energy.There are eight follow-ons on tap for $1.7
billion. If the recent past is any guide, though, a few overnight deals will
likely round out the calendar. (RJH)
2:02 (Dow Jones) In reaction to ISM Feb report showing equivalent annualized
4.4% GDP growth, Banc One senior financial economist in Chicago Anthony
Karydakis says economic activity could accelerate to around 4% over the next
two quarters, but ISM alone is not definitive - we have to continue to track
other measures of economic activity, he says, nor should we be "overly
impressed by one blockbuster quarter" as economy lifts out of recession. (JNP)
1:47 (Dow Jones) Arthur Andersen, under fire both for handling Enron's books
and for shredding thousands of Enron-related documents, has just lost another
longtime client. Merck (MRK), an Andersen client since 1972, had decided to
drop the embattled audit firm in favor of PricewaterhouseCoopers. Merck is only
one of growing list of high-profile departures following Enron's implosion.
SunTrust Banks (STI), Andersen's largest banking client, decided to drop
Andersen, its auditor of 60 years, also choosing PricewaterhouseCoopers. Delta
Air Lines (DAL), an Andersen client since 1949, also is reported to be weighing
whether to switch to a new auditor. (JAW)
1:33 (Dow Jones) Some short sellers like to play secondary offerings,
shorting the stock leading up to a deal knowing there's a good chance investors
will get skittish when a company issues shares. Anyone who shorted Aftermarket
Technology (ATAC) is getting squeezed. The company was going to sell 6 million
shares in a secondary, but pulled the deal at the last minute, since an
investor that wanted to sell 3.6 million shares pulled out, citing unstable
market conditions. Now Aftermarket might not sell any shares. The result? The
stock's up 10%. (RJH)
1:19 (Dow Jones) Robertson Stephens analyst Harry Curtis upgraded Mandalay
Resort Group (MBG) to buy from market perform and set a 12-month price target
of $38a share on the stock. The analyst downgraded the stock in November based
on price. Curtis also increased his fiscal 2003 earnings estimate to $1.70,
including goodwill, from $1.30. He added that by the March-April timeframe,
revenue per available room for the casino-hotel company should be running close
to last year. (DDO)
1:06 (Dow Jones) Loud music blaring from a rowdy party. A dog that won't stop
barking. Those things can be a nuisance. But lead paint? A Rhode Island judge
decided Thursday to determine whether the lead pigment in paint constitutes a
public nuisance in a trial set for Sept. 4. The trial will be the first to use
a nuisance argument against paint manufacturers. Lehman Brothers analyst Tim
Gerdeman said he's in the camp that thinks landlords and dwelling owners are
responsible for paint maintenance, but should the verdict swing the other way,
the financial liability could feasibly be in the "tens of millions of dollars."
A court will decide whether the trial will be heard by a jury on March 15.
(CCC)
12:53 (Dow Jones) Analysts found some optimism in Interpublic's (IPG) 4Q
report, in which the company met EPS estimates but missed revenue forecasts.
J.P. Morgan H&Q writes, "A number of encouraging signs for IPG are
materializing. Net new business wins have picked up nicely in 1Q02, signaling
that IPG is moving past the integration and conflict issues that dogged it in
2001." IPG shares adding 11% to $30.20. (GS)
12:43 (Dow Jones) A bankruptcy court Thursday granted USG Corp. (USG) a
preliminary injunction to temporarily stop 13 personal injury lawsuits from
proceeding against a number of its employees in state courts across the
country. The order keeps USG from having to participate in the litigation at
substantial costs to itself and its estate and at a distraction to its employee
defendants' time and effort, the company said in its motion. All the 13
lawsuits arose from traffic accidents or delivery accidents involving USG
employees. USGoff 1.1% at $6.92. (TB)
12:30 (Dow Jones) While junk-bond flows remained positive this week, at
$46.6M, the number of high-yield mutual funds reporting outflows actually edged
out those getting new investments, 185 to 184, according to AMG Data Services.
Last week's inflows were $129.9M, with 217 funds taking in money and 148 losing
it. (RTB)
12:17 (Dow Jones) Bet you'd like to know what's going to be the next hot
sector in the stock market or where the Nasdaq Composite Index is headed over
the next several months. Datek Online Financial Services recently polled 10,000
of its customers and got some opinions. Of the 414 clients who responded, about
47% see health care as the market's top-performing sector over the next six
months. About 43% of respondents predict that the Nasdaq Composite will rise to
2100 by August - an increase of 21% from where the index closed Thursday. (GFC)
(END) DOW JONES NEWS 03-01-02
02:53 PM |
