>>How's about just once, we get an analyst who actually tells us a stock is a good buy BEFORE it runs up in price... ;-)
Seems to happen every time.
Did you happen to miss this?
Nightly Business Report 2/2 - (Audio was off Monday, so here's what they said)
Pharmaceuticals Give The Dow A Real High
LINDA O'BRYON: Stocks all around the world staged a rally today, and Wall
Street went along for the ride! The Dow Jones Industrial Average gained more
than 200 points powered in part by what could be the biggest merger ever,
anywhere in the world. Scott Gurvey reports.
SCOTT GURVEY, NIGHTLY BUSINESS REPORT,
CORRESPONDENT: Stocks opened up and never looked back in a session that saw the Dow gain more than two hundred points, and close above the eight thousand mark. The rally followed strong gains in Asian markets overnight and a strong opening in Europe led by the pharmaceuticals. Late Friday the two British drug giants...
SmithKline Beecham (NYSE:SBH) and Glaxo Wellcome (NYSE:GLX)
announced they are talking about what would be the biggest merger ever. It
would be worth between sixty five and seventy billion dollars. That's almost
twice the size of Worldcom's (NASDAQ:WCOM) proposed takeover of MCI
(NASDAQ:MCIC). And it would leap the new company over Merck
(NYSE:MRK) to become world market share leader.
ALEX ZISSON, PHARMACEUTICAL ANALYST, HAMBRECHT &
QUIST: It's really going to be a phenomenal company. It will be a highly, highly profitable transaction for the owners of the combined company. The drug industry is really perfect to consolidate. It has high growth margins and great cash flow. So, you can take eighty percent of a company's revenue and cut out forty percent of the costs.
GURVEY: That will of course cost a lot of people jobs as the companies
consolidate. Other drug companies saw their stocks bid up today as investors
contemplated other combinations. Shares of Glaxo ADRS (NYSE:GLX)
gained 16 percent in New York. SmithKline ADRS (NYSE:SBH) gained
seven percent. Other drug stocks posting gains were Shering Plough , Eli Lilly
(NYSE:LLY) and Pharmacia &Upjohn ( PNU). A big loser on the day was
American Home Products (NYSE:AHP), its stock lost four percent. American
Home was in merger talks with SmithKline and the company says it was told
that deal was off just minutes before the SmithKline/ Glaxo talks were
announced.
JOSEPH RICCARDO, PHARMACEUTICAL ANALYST, BEAR
STEARNS: Glaxo had an unfair advantage here. It had everybody on its side, and then it had a chairman who was pretty aggressive. So you put that all together and the American Home Products/SmithKline Beecham deal didn't have a chance.
GURVEY: There is no word on when the merger will be officially announced . But analysts say the talks are well advanced and the deal is just about done.
Scott Gurvey, NIGHTLY BUSINESS REPORT, New York.
Nightly Business Report transcripts are available on-line post-broadcast. The
program is transcribed by
FDCH. Updates may be posted at a later date.
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