U.S. Equity Movers: America Online, General Magic, Sunbeam
Bloomberg News
June 22, 1998, 8:31 a.m. PT
U.S. Equity Movers: America Online, General Magic, Sunbeam
New York, June 22 (Bloomberg) -- The following is a list of
companies whose shares are moving in U.S. markets. The stock
symbol is in parentheses after the company name.
America Online Inc. (AOL) rose as much as 2 9/16 to 98 15/16
as the No. 1 Internet-service provider won a U.S. Supreme Court
fight to kill a defamation lawsuit over comments posted by a
subscriber to AOL's online service.
Broderbund Software Inc. (BROD) rose as much as 1 1/4 to 17
3/4 after the software company agreed to be acquired by Learning
Co. (TLC) for $240 million in stock. Learning Co. will issue 0.80
of a share for each Broderbund share. Broderbund shareholders
will get $20 a share, based on Friday's closing price, a 21
percent premium. Learning Co. said the acquisition will add to
1999 earnings by 10 cents a share or more. Learning Co. fell as
much as 1 3/4 to 23 1/8.
Chancellor Media Corp. (AMFM) rose as much as 1 11/16 to 46
3/4 after the radio broadcaster said it agreed to acquire Martin
Media LP, a closely held outdoor advertising company, and several
affiliated entities for $610 million in cash plus a working
capital adjustment. The purchase price represents about 11.5
times projected 1999 billboard cash flow and will immediately add
to Chancellor's cash flow after taxes, the company said.
Cidco Inc. (CDCO) fell as much as 1 5/16 to 4 7/8 after the
maker of Caller ID said it expects second-quarter results to fall
below analysts' estimates. Cidco said it sees a loss of $6
million in the quarter, and revenue about 20 percent lower than
analysts' current estimates.
Walt Disney Co. (DIS) fell as much as 2 3/8 to 105 3/16 as
the world's second-largest entertainment company was downgraded
to ''hold'' from ''buy'' by analyst John Tinker at NationsBanc
Montgomery Securities. Disney doesn't have ''a lot happening'' in
the next several quarters, and it's going to be difficult for the
stock to be ''explosive'' in the near term, Tinker said. Disney
also fell late last week after analysts cut earnings estimates
because of disappointing results from the company's recent movies
and weak attendance at Disney World.
Dixie Group Inc. (DXYN) fell as much as 1 to 10 5/8 as
Daniel K. Frierson, chairman and chief executive of the home-
center and floor-covering company, said it will discontinue its
knit fabric and apparel operations because of weakness in Asia's
monetary markets.
FPA Medical Management Inc. (FPAM) rose as much as 7/16, or
33 percent, to 1 3/8 after the physician-practice management
company said it will sell some assets and is in talks with banks
to get more financing. FPA said it may consider filing for
prepackaged Chapter 11 bankruptcy protection later this year. It
also announced the appointment of Thomas Allison as chief
financial officer, replacing Douglas Kerner, acting chief
financial officer. Separately, FPA Management said it hasn't
stopped paying doctors in parts of California, Nevada and
Arizona, contrary to media reports.
General Magic Inc. (GMGC) rose as much as 1 5/16 to 15 3/8
as the voice-recognition software company said it will
demonstrate a prototype screen telephone, called Magic Phone, in
California. The voice-activated phone may enable uses to retrieve
customized information, such as weather or traffic reports, by
asking for it.
International Total Services Inc. (ITSW) fell as much as 1
5/8 to 7 after the commercial services company said it
anticipates lower-than-expected earnings for the fiscal first
quarter ending June 30 of 14 cents to 15 cents a diluted share.
The company also said it asked its outside auditors to look into
certain accounting matters that may relate to the fourth quarter
and fiscal year ended March 31. The company earned 23 cents in
the year-earlier first quarter.
IWL Communications Inc. (IWLC) fell as much as 6 1/2 to 8
1/2 as the provider of computer-communications equipment said
revenue in the fourth quarter ending June 30 will be about $8.2
million, compared with $6.7 million a year earlier, because of
contract delays.
Laser Mortgage Management Inc. (LMM) fell as much as 1 5/16
to 12 3/4 after the mortgage real estate investment trust said
it's lowering its quarterly dividend payment to 38 cents from 43
cents as prepayment rates on residential mortgages have
accelerated. The dividend is payable July 31 to shareholders of
record June 30.
Lockheed Martin Corp. (LMT) fell as much as 1 1/4 to 102 7/8
as the No. 2 defense and aerospace company said it will cut as
many as 2,500 jobs in the San Francisco Bay area because of lost
contracts and delays in orders. The reductions represent about 26
percent of Lockheed's missile and space workers in the Bay area.
Royal Philips Electronics NV (PHG) New York shares fell as
much as 2 3/16 to 83 5/8 after the company agreed to sell its
PolyGram NV (PLG) business, the world's leading recorded-music
company, to Seagram Co. (VO) for $200 million less than agreed
upon last month. One Philips New York share equals one ordinary
share.
Steiner Leisure Ltd. (STNRF) rose as much as 1 3/8 to 28 1/4
after the provider of commercial services on cruise ships said it
will buy back as many as 500,00 of its common shares on the open
market or in privately negotiated transactions.
Sunbeam Corp. (SOC) fell as much as 3 to 8 1/4 as the U.S.
Securities and Exchange Commission started an informal
investigation of the maker of Oster appliances and Mr. Coffee,
focusing on the company's accounting practices, the Wall Street
Journal reported.
Tandy Corp. (TAN) rose as much as 2 3/4 to 45 3/16 after
CompUSA Inc. (CPU) said it plans to buy the retailer's Computer
City chain for $275 million.
Telscape International Inc. (TSCP) fell as much as 5 1/8 to
12 after the telecommunications services company said it expects
second-quarter results to fall below analysts' estimates.
Zoran Corp. (ZRAN) rose as much as 1 1/4 to 10 7/8 as the
supplier of digital-video disk products for the personal computer
and DVD player market said that Intel Corp. (INTC) is including
Zoran's SoftDVD software-only DVD decoder/player with its 8MB
Intel Express 3D graphics card and with the SE440BX motherboard,
Graphics/DVD edition.
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