HERE IS THE CANNaCORD LETTER FROM TODAY THE REAL ONE
PERHAPS THE POSTER COULD VERIFY HIS LETTER AS WELL
Sent: Tuesday, November 18, 2003 9:28 AM
Subject: Canaccord Capital - Morning Coffee - Tuesday November 18, 2003
>
>
>
> >
> >Canaccord Capital - Morning Coffee - Tuesday November 18, 2003
> >
> >This publication is a market commentary not to be construed as a source
of
> >buy or sell information
> >
> >
> >Some Food Really Is to Die For
> >
> >A restaurant owner in Austria who fled the building together with his
> >staff when a fire broke out "forgot" to evacuate the guests.
> >
> >Around 20 were still sitting at the tables when the fire brigade arrived
> >even though the room had filled with smoke.
> >
> >A fireman at the scene in Vienna said the owner had acted sensibly by
> >turning off the gas mains and leaving the building. "But in the
commotion,
> >he apparently forgot to clear the restaurant," the fireman added.
> >
> >One group of fire fighters were able to put the flames out, while a
second
> >group evacuated the guests. A number of customers were treated by
> >paramedics for smoke inhalation.
> >
> >
> >CANADA
> >
> >The S&P/TSX Composite rose for the first day in three, erasing a loss in
> >the last three minutes of trading. Royal Bank (RY) climbed in the
> >afternoon as investors bought shares of companies whose share prices they
> >think don't reflect prospects for profit growth. Computer-related shares
> >such as Nortel Networks (NT) that rallied earlier this year declined.
> >Nortel's peak this year was $6.30 in September and the stock has more
than
> >doubled in 2003, compared to Royal Bank's 10 percent gain.
> >
> >Gold miner Ivanhoe Mines (IVN) jumped 10 percent, as UBS initiated
> >coverage on the company, saying expects the shares to reach $17 within 12
> >months.
> >
> >Hollinger (HLG.C) soared 42 percent after Conrad Black quit as CEO of
> >Hollinger International, which he controls through Hollinger, and put the
> >company up for sale after an internal investigation found he misled
> >shareholders about $32 million paid to executives.
> >
> >In the oil and gas sector, Enerplus Resources Fund (ERF.UN) fell after
> >agreeing to buy closely held Ice Energy for $123 million. Enerplus plans
> >to sell $143 million of new trust units to pay for the acquisition.
> >
> >Churchill (CUQ) was down after the Alberta-based builder said project
> >delays and a lack of improvement in contract margins caused an operating
> >loss in its third quarter.
> >
> >
> >UNITED STATES
> >
> >Stocks fell for a sixth day in seven as slumping markets in Asia and
> >Europe and terrorism concerns triggered speculation the market has risen
> >too far. The S&P 500 has rallied as much as 20 percent this year and is
> >headed for its first annual gain since 1999.
> >
> >In the retail sector, Lowe's (LOW) dropped after the company said
> >fourth-quarter earnings would miss Street estimates slightly. Sales at
> >stores open at least a year will rise about 7 percent this quarter, down
> >from 12 percent growth last quarter. Toys "R" Us (TOY) tumbled after the
> >No. 2 U.S. toy retailer reduced its annual forecast as its third-quarter
> >loss widened. It plans to close 182 Kids "R" Us and Imaginarium stores.
> >
> >St. Paul (SPC), the sixth-largest U.S. commercial insurer, rose after
> >agreeing to merge with Travelers Property Casualty (TAP.A). The
> >transaction, worth about $16.1 billion, will create the second-largest
> >commercial insurer in the country behind American International (AIG).
> >
> >In the finance sector, Charles Schwab (SCH), pioneer of the mutual-fund
> >supermarket, lost ground after the company said its investigation of
> >illegal mutual-fund activities has found 18 after-hours trades, and five
> >arrangements allowing investors to buy and sell rapidly. Two employees
who
> >deleted e-mails sought in the investigation have been fired.
> >
> >
> >ECON 101
> >
> >CANADIAN Data Today: This morning, International Securities Transactions
> >(Sep) are expected to come in flat at $0.0 billion, compared to -$7.2
> >billion the previous month.
> >
> >U.S. Data Today: The Consumer Price Index (Oct) is expected to come in at
> >0.1%, down from 0.3% previously, while Core CPI (Oct) should come steady
> >at 0.1%. The NAHB Housing Index (Nov) is expected to fall to 70 from 72
> >previously.
> >
> >
> >MARKET MOVERS
> >
> >New 52-Week Highs:
> >
> >Alliance Atlantis Commun. (AAC.A, $23.94)
> >Ariane Gold Corp. (AGD, $1.44)
> >Algoma Central (ALC, $58.25)
> >Barclays Adv Equal Weighted (BAE.UN, $10.25)
> >SAGE Income Fund (BBB.UN, $14.50)
> >Brampton Brick (BBL.A, $16.00)
> >Cott Corp. (BCB, $36.35)
> >Bema Gold (BGO, $4.94)
> >BPO Properties (BPP, $34.00)
> >Brompton Stable Income Fund (BSR.UN, $10.94)
> >Laidlaw International Inc (BUS, $15.60)
> >Cameco Corp. (CCO, $59.00)
> >CCS Income Trust (CCR.UN, $26.47)
> >Constellation Copper (CCU, $0.12)
> >Cathedral Energy Services (CET.UN, $1.97)
> >Chartwell Seniors Housing REIT (CSH.UN, $11.89)
> >Calian Technology (CTY, $10.30)
> >DRC Resources (DRC, $9.50)
> >Desert Sun Mining (DSM, $1.98)
> >Farallon Resources (FAN, $0.86)
> >Goldcorp Inc. (G, $21.46)
> >Gaz Metro. - Ltd. Partnership (GZM.UN, $21.18)
> >Industrial Alliance Ins & Fin (IAG, $41.55)
> >Marsulex Inc. (MLX, $4.99)
> >Morguard Corp. (MRC, $24.44)
> >Mercer International (MRI.U, $6.55)
> >Neurochem (NRM, $22.50)
> >Oil Sands Split Trust (OST.UN, $20.00)
> >Pengrowth Energy Trust (PGF.UN, $18.60)
> >Phoenix Technology Services (PHX, $2.16)
> >Parkland Income Fund (PKI.UN, $19.10)
> >Pacific & Western Credit (PWC, $7.25)
> >Rogers Wireless Communications (RCM.B, $28.50)
> >Cdn. Real Estate Investment (REF.UN, $15.87)
> >RioCan Real Estate Investment (REI.UN, $14.84)
> >Rubicon Minerals (RMX, $1.69)
> >RONA Inc. (RON, $25.75)
> >Smithfield Foods (SFC, $32.50)
> >SNC-Lavalin Group (SNC, $48.37)
> >StarPoint Energy Ltd. (SPN, $3.55)
> >TransForce Income Fund (TIF.UN, $8.95)
> >TransAtlantic Petroleum (TNP.U, $0.33)
> >TransCanada Corp. (TRP, $27.74)
> >TVA Group (TVA.B, $22.48)
> >TVI Pacific (TVI, $0.24)
> >Twin Mining (TWG, $0.49)
> >Trizec Canada (TZC, $17.50)
> >Vitran Corp. (VTN.A, $19.25)
> >Wolfden Resources Inc (WLF, $7.25)
> >Wheaton River Minerals (WRM, $3.45)
> >Sleep Country Canada (Z.UN, $12.90)
> >
> >New 52-Week Lows:
> >
> >Automodular (AM, $2.77)
> >Cymat Corp (CYM, $0.45)
> >FCE Canada Inc. (FCX.U, $15.00)
> >Atlas Cold Storage Income Tr. (FZR.UN, $6.72)
> >Hammond Power Solutions Inc (HPS.A, $0.30)
> >Ivaco Inc. (IVA.A, $0.22)
> >Rand A Technology (RND, $0.30)
> >ROW Entertainment Income Fd (ROW.UN, $9.90)
> >Systech Retail Systems (SYS, $0.02)
> >Viking Energy Royalty Trust (VKR.UN, $5.15)
> >
> >
> >CANADIAN EQUITIES OF INTEREST
> >Listed Alphabetically by Symbol
> >
> >Gold Futures Dec '03 (GOLDC : NYMEX : US$391.70)
> >Net Change: -6.30, % Change: -1.58%
> >Who called for this mellow yellow? Gold had its biggest drop in two weeks
> >in New York, retreating from a seven-year high on gains for the U.S.
> >dollar against the euro. After failing to breach $400, prices fell on
> >concern speculators may further reduce holdings that reached the highest
> >in at least two decades in September. Hedge funds and other large
> >speculators had bought 82,578 more gold futures contracts than they had
> >sold as of November 11. The "net-long" position was down by a third from
> >122,847 on September 2, the highest since at least February 1983.
> >
> >Air Canada (AC : TSX : $0.77)
> >Net Change: -0.03, % Change: -3.75%, Volume: 4,770,100
> >
> >I am the only being whose doom
> >No tongue would ask no eye would mourn
> >I never caused a thought of gloom
> >A smile of joy since I was born
> >
> >In secret pleasure - secret tears
> >This changeful life has slipped away
> >As friendless after eighteen years
> >As lone as on my natal day
> >
> >There have been times I cannot hide
> >There have been times when this was drear
> >When my sad soul forgot its pride
> >And longed for one to love me here
> >
> >But those were in the early glow
> >Of feelings since subdued by care
> >And they have died so long ago
> >I hardly now believe they were
> >
> >First melted off the hope of youth
> >Then Fancy's rainbow fast withdrew
> >And then experience told me truth
> >In mortal bosoms never grew
> >
> >'Twas grief enough to think mankind
> >All hollow servile insincere
> >But worse to trust to my own mind
> >And find the same corruption there
> >
> >I Am the Only Being - by Emile Bronte
> >
> >ATS Automation Tooling Sys. (ATA : TSX : $12.59)
> >Net Change: -0.86, % Change: -6.39%, Volume: 87,300
> >What a tool! Shares sold off for a second straight trading day as the
> >producer of factory automation equipment's earnings met with mixed
reviews
> >from the Street. On Friday, the company announced that it earned
$440,000,
> >or $0.01 per share, in the September quarter, an 81.6% decrease from last
> >year despite a 1.0% increase in revenues to $148.4 million. Automation
> >systems orders were $145 million in the quarter, up 78% from the same
> >quarter a year ago, and order backlog rose 22.6% to $200 million. Scotia
> >Capital downgraded the stock to SECTOR UNDERPERFORM from Sector Perform,
> >while BMO Nesbitt Burns raised their target price to $18.00 from $16.00.
> >After selling off from a peak near $16.00 a month ago, the shares fell
> >yesterday into the $12.50 range. The next major support level down
appears
> >in the $11.50 to $12.00 range.
> >
> >ATI Technologies (ATY : TSX : $18.21)
> >Net Change: 0.09, % Change: 0.50%, Volume: 839,800
> >Chips and dips? After market, shares rocked 10% higher as the company
> >upped its outlook for next year's Q1, ending November 30. The last Q1 saw
> >earnings of US$0.02 per share on revenue of $322 million. This coming Q1,
> >they expect to earn US$0.16 to $0.20 per share on revenue of $440 million
> >to $470 million. They also said that Q2 should be strong, though not as
> >strong as it is a seasonally weaker quarter. Even the most hardened cynic
> >can't deny that tech spending has improved materially. The only thing
they
> >might argue is that it won't last. But then, they've always argued that.
> >
> >Stuart Energy Systems (HHO : TSX : $3.92)
> >Net Change: 0.20, % Change: 5.38%, Volume: 80,800
> >HHO! HHO! HHO! Shares picked up Monday after the company announced a
> >significant contract. Stuart received a contract from the South Coast Air
> >Quality Management District in California, dude, to produce a Hydrogen
> >Energy Station with both vehicle fuelling and power generation
> >applications. The station will be used to fuel a fleet of vehicles, and
is
> >seen as the first step in creating an infrastructure to support hydrogen
> >powered vehicles. Financial terms of the contract were not disclosed. For
> >the last year, Stuart shares have been under accumulation, steadily
> >advancing from a low of $1.85 in October 2002. Yesterday, the shares met
> >with resistance at $4.00. If the shares can break through there, they
> >could firm towards the $5.00 level, with some resistance along the way at
> >$4.40.
> >
> >Hollinger (HLG.C : TSX : $5.00)
> >Net Change: 1.49, % Change: 42.45%, Volume: 121,500
> >Lowered Black. Besides the fact that it would constitute theft from
> >shareholders, the second worst part of this terrible allegation is that
it
> >gives Jean Chretien something to smile about (albeit crookedly). Lord
> >Black has stepped down as CEO of Hollinger International (HLR) after a
> >probe found he and other company execs pilfered the equivalent of $59
> >million that was not authorized by the board and its audit committee. He
> >is to remain on as non-executive chairman of Hollinger and chairman of
The
> >Telegraph Group and has agreed to help in the sale of company or parts of
> >it (guess that rumour was correct). We don't wish harm on the man, as he
> >has done much for the country. However, his blue blood pretentiousness is
> >another story.
> >
> >Mega Bloks (MB : TSX : $24.00)
> >Net Change: 0.00, % Change: 0.00%, Volume: 32,000
> >Mega Trouble? Shares of Toys "R" Us (TOY) fell after reporting a
> >larger-than-expected Q3 loss. The company plans to close its 146
> >freestanding Kids "R" Us, 36 freestanding Imaginarium stores, and three
> >distribution centres. Toys "R" Us Chief Executive John Eyler reports, "We
> >are not seeing the kind of spending you would associate with a recovery."
> >Consider this, four customers account for approximately 58% of Mega
Bloks'
> >revenues. North American sales by Mega Bloks are concentrated in a small
> >number of customers including Wal-Mart Stores (WMT), Target (TGT), Toys
> > "R" Us and Kmart. Toys "R" Us (Canada and U.S.) named Mega Bloks,
Vendor
> >of the Year for 2001. Except for outstanding purchase orders for specific
> >products, Mega Bloks does not have written contracts with or commitments
> >from any of its customers. Canaccord Capital Merchandising Analyst Jamie
> >Spreng believes Mega Bloks is on track for another record year in 2004.
> >The company should eliminate its long-term debt and be profitable every
> >quarter. Canaccord Capital rates Mega Bloks as a BUY with a target price
> >of $28.50.
> >
> >QLT (QLT : TSX : $22.23)
> >Net Change: 2.16, % Change: 10.76%, Volume: 1,348,200
> >Stick it in your eye, Eyetech! The American Academy of Ophthalmology said
> >that the Phase III results for the anti-macular degeneration treatment
> >Macugen, which is injected into the eye, were statistically significant
in
> >improve results over Visudyne therapy for patients with complications due
> >to macular degeneration. However, they did not do so as well as Visudyne,
> >which prompted Raymond James to upgrade the stock. Many analysts expect
it
> >will eventually receive FDA approval but argue that it is no matter, as
it
> >isn't as effective as Visudyne. For the last two months, QLT shares have
> >been sliding, breaking down below the $20.00 level in a bear trap prior
to
> >this news. Shares are now trading close to their $22.00 resistance level.
> >If the shares can break through $22.00, a move to retest resistance at
> >$25.00 would be likely.
> >
> >Royal Group Technologies (RYG : TSX : $9.70)
> >Net Change: -0.74, % Change: -7.09%, Volume: 736,400
> >Plastic house maker melts down. Shares broke down below the $10.00 level
> >Monday on volume. The producer of plastic building materials announced
> >that the company's Chairman and Co-CEO, Vic De Zen has decided to retire
> >as of December 18. Mr. De Zen will, however, remain with the company as a
> >non-executive Chairman. The company's current President and Co-CEO,
> >Douglas Dunsmiur, will become the company's only CEO, and retain the
title
> >of President as well. The next major support levels for the shares on the
> >downside appear at $9.50, $9.00 and $8.50, with upside resistance at the
> >$11.50 and $13.00 levels.
> >
> >Telesystem Intl. Wireless (TIW : TSX : $10.42)
> >Net Change: 0.27, % Change: 2.66%, Volume: 336,800
> >Up on acquisition news. Shares firmed Monday after the international
> >provider of mobile telecommunications services announced and acquisition.
> >TIW has agreed to acquire the interest in TIW Asia N.V. that it did not
> >already own, for 660,000 shares, or approximately US$4.7 million. When
> >this is completed, TIW will own 42.2% of Hexacom India, which operates a
> >GSM cellular network with 182,100 subscribers. In the September quarter,
> >Hexacom earned US$2.3 million on revenues for US$7.8 million. After a
> >major advance in the summer, where the shares more than doubled, TIW
> >shares have been consolidating in a channel between $10.00 and $11.00 for
> >the last two weeks. If the shares can break through $11.00, a move to
> >retest prior resistance in the $14.00 to $15.00 range would be possible
on
> >trend.
> >
> >Wheaton River Minerals (WRM : TSX : $3.33)
> >Net Change: 0.08, % Change: 2.46%, Volume: 15,395,900
> >Ah, so that's why the stock has been on fire. Net earnings multiplied to
> >US$14.7 million (US$0.03 per share) from US$1 million YOY. Furthermore,
> >cash flows jumped to US$31.5 million (US$0.07 per share) from US$2.7
> >million YOY. They sold 105,400 oz/g, 1.5 million oz/silver, and 28.3
> >million pounds of copper. The gold cash costs were US$98 per gold
> >equivalent (net of copper credits). If you think that is explosive
growth,
> >consider their expectations of current total annual production of 500,000
> >gold equivalent ounces to leap to 900,000 gold equivalent ounces within
> >the next two years.
> >
> >
> >U.S. EQUITIES OF INTEREST
> >Listed Alphabetically by Symbol
> >
> >Bluefly (BFLY : NASDAQ : US$5.58)
> >Net Change: 1.06, % Change: 23.45%, Volume: 1,727,400
> >That Soros Touch. Shares have been buzzing to successive new 52-week
highs
> >after last week saying that October was the strongest sales month ever,
up
> >30%. In fact, the stock is up 300% in about a month. In all, Soros
Private
> >Equity has invested a total of about $50 million via 12% convertible
> >promissory notes. The company sells is an on-line retailer of heavily
> >discounted designer clothing. Think Winners, but with 70% less junk.
> >
> >Career Education (CECO : NASDAQ : US$45.81)
> >Net Change: -7.10, % Change: -13.42%, Volume: 14,538,000
> >A lesson from the Street. Career Education sold off after Banc of America
> >Securities said that the company's earnings might be reduced because of a
> >lawsuit filed by a former employee. On Monday, a lawsuit was filed
against
> >the for-profit college operator by a former director of career services
at
> >Career Education-owned Gibbs College for wrongful termination, claiming
> >she was fired for refusing to falsify student records. Imagine that.
> >Career Education's shares have more than doubled since trading at levels
> >of around $20 at the beginning of the year, outperforming its peers. B of
> >A says the lawsuit may result in investor scepticism toward the company's
> >"highly touted performance."
> >
> >LaBranche (LAB : NYSE : US$8.15)
> >Net Change: -0.19, % Change: -2.28%, Volume: 3,399,600
> >LaAllTimeLow. The NYSE's largest specialist firm keeps falling on news it
> >received a subpoena in late October from the SEC as a part of the ongoing
> >investigation into Wall Street's top five specialist firms. The NYSE's
> >enforcement division claims the company's specialists gained $43.5
million
> >through trading violations, but LaBranche said it has yet to receive any
> >"written documentation" from the NYSE substantiating the alleged trading
> >violations. Early last Friday, LaBranche's chief executive of its
> >specialist trading division stepped down, but said it was not related to
> >regulatory investigations. Uh-huh. LaBranche has said that many of the
> >documents had already been given to the NYSE and the SEC's compliance and
> >examinations office. Uh-huh.
> >
> >Metris Companies (MXT : NYSE : US$4.16)
> >Net Change: -0.64, % Change: -13.33%, Volume: 2,897,500
> >A delay doesn't pay. This company had the dubious distinction of being
the
> >top percentage decliner on the NYSE yesterday after delaying to file its
> >third-quarter report. Metris said its auditor, KPMG, found a "material
> >weakness involving internal control" relating to its procedures for
> >valuing retained interests in loans it securitized. Metris, which issues
> >cards to consumers with spotty credit histories, said it is reviewing its
> >policies and procedures, and will convey the results of its analysis to
> >the auditor. The company said it will file its third-quarter report with
> >the SEC as soon as possible, and the delay is unlikely to affect its
> >credit agreements or debt obligations. Metris has struggled as its rapid
> >growth and a weak economy saddled it with high customer defaults. Last
> >quarter it sold about $1 billion of assets to help pay its debts.
> >
> >Pfizer (PFE : NYSE : US$34.07)
> >Net Change: -0.01, % Change: -0.03%, Volume: 20,106,000
> >Viagra on top - no longer. It turns out that patients suffering from
> >erectile dysfunction prefer rival drugs over the pioneering treatment,
> >Pfizer's Viagra, as studies presented at the sixth congress of the
> >European Society for Sexual Medicine showed. Cialis, a drug marketed by
> >Lilly-ICOS, a joint venture between Eli Lilly (LLY) and ICOS (ICOS),
> >emerged as the top option in one trial, and Levitra, sold by Bayer (BAY)
> >and GlaxoSmithKline (GSK) led its rivals in the other. The results are
> >likely to give the companies ammunition in their fierce battle for market
> >share with Pfizer's Viagra, the first drug of its kind on the market that
> >revolutionised the treatment of erectile dysfunction. Their relative
> >merits with respect to speed of action and duration of effect are
> >disputed, but analysts say the two new drugs have widened the market for
> >anti-impotence treatments. Getting people to switch from Viagra might be
a
> >hard sell, however.
> >
> >Roxio (ROXI : NASDAQ : US$5.57)
> >Net Change: -0.74, % Change: -11.73%, Volume: 5,018,900
> >There's no party at this ROXI. U.S. Bancorp Piper Jaffray lowered its
> >rating on shares of this digital media software developer to an
OUTPERFORM
> >from Strong Buy, citing the impact of a transition to a new CFO. Last
> >month, the company bought song-swap pioneer Napster in a bankruptcy
> >auction and relaunched the service. In the first week that the revived
> >Napster site was open for business, Apple's (AAPL) own iTunes service had
> >outsold Napster five-to-one. In addition, Roxio gets to look forward to
> >Dell Computer (DELL) entering the market. What do investors think of all
> >this? Well, Roxio is has been cut in half in less than a month.
> >
> >Silicon Image (SIMG : NASDAQ : US$6.40)
> >Net Change: -2.45, % Change: -27.68%, Volume: 4,914,600
> >We Repeat: A delay doesn't pay. This semiconductor maker got more than a
> >haircut after announcing it won't file an earnings report on time because
> >its audit committee is investigating how revenue for some licensing
> >agreements was booked in 2002 and 2003. Silicon Image doesn't know if the
> >probe will lead to a restatement of earnings. The committee is working
> >with outside counsel and outside consultants, and doesn't know what the
> >precise nature and scope of the investigation will be or how long it will
> >take. In the meantime, investors' selling didn't take much time at all.
> >
> >Tommy Hilfiger (TOM : NYSE : US$13.75)
> >Net Change: -1.11, % Change: -7.47%, Volume: 2,505,800
> >Tommy, we can hear you loud and clear. This clothing designer traded
> >sharply lower on news it is in talks with Dillard's (DDS) to reduce the
> >number of its stores which sell Hilfiger's merchandise, a move that could
> >cut the designer's earnings and revenues in its fiscal second half.
> >Hilfiger previously announced plans to reduce distribution to U.S.
> >department stores, part of a strategy to reduce an oversupply of
> >merchandise in the marketplace that results in heavy promotional activity
> >and price reductions that can pressure margins. Dillard's, it largest
> >customer, sells Hilfiger's trendy apparel in 325 stores, which generated
> >about $240 million, or 13 percent, of Hilfiger's revenue in FY03.
Hilfiger
> >says it expects to offset the potential shortfall through increased sales
> >to other department stores, better pricing of its merchandise and cost
> >cuts.
> >
> >Toys R Us (TOY : NYSE : US$11.18)
> >Net Change: -1.56, % Change: -12.24%, Volume: 7,551,800
> >All I want for Christmas is my business to survive into January. The No.
2
> >toy retailer in the U.S. on Monday posted a wider third-quarter loss and
> >said it would close its disappointing Kids R Us clothing stores. Toys R
> >Us, which also cut its full-year earnings forecast, said the 146 Kids R
Us
> >stores, which employ about 3,800 people, were losing money. It said it
> >would also close 36 Imaginarium stores, which sell educational toys
(weren
> >'t they the worst?) and games, and three distribution centres. The
> >closures are expected to boost operating earnings but will mean
> >restructuring and other pre-tax charges totalling $280 million, to be
> >taken mostly in the current quarter. Competition in the toy industry is
> >cutthroat, particularly around the holidays. Discounters like Wal-Mart
> >Stores (WMT), the No. 1 toy retailer, are able to sell toys at
rock-bottom
> >prices, making up the profit on sales of other items. Specialty toy
> >retailers like Toys R Us get squeezed on price. FAO (FAOO), parent of
posh
> >toy store FAO Schwarz, emerged from bankruptcy earlier this year but is
> >now in default with its lenders.
> >
> >Wyeth (WYE : NYSE : US$40.11)
> >Net Change: -1.04, % Change: -2.53%, Volume: 8,473,200
> >Slim chance. Merrill Lynch has downgraded this drugmaker to a NEUTRAL
from
> >Buy because of expensive litigation over recalled diet drugs known as
> >fen-phen. Thousands of patients have decided to opt out of a settlement
> >that assigned pre-designated awards to patients who claim they were
harmed
> >by the combination treatment. Those "opt-out" patients can sue Wyeth,
> >which has already reserved about $16.6 billion for costs associated with
> >fen-phen. But some analysts expect Wyeth to take additional charges if it
> >is forced to pay big penalties in opt-out cases. Merrill says they are
> >uncomfortable having a "Buy" rating on the stock heading into the trials,
> >given Wyeth's track record of losing 5 of 6 court cases to date. Maybe it
> >would help if they hired Johnny Cochran? "If the pants don't fit, put
down
> >that banana split!"
> >
> >
> >THE LAST DROP: In times like these, it is helpful to remember that there
> >have always been times like these. - Paul Harvey
> >
> >
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