U.S. stocks to watch
Columbia Bancorp (CBMD: news, msgs) said, after the close of trading, that it will spend $33.9 million in stock to acquire Suburban Bancshares (SNBK: news, msgs). Under terms of the deal, Columbia will pay 3 for each Suburban share. Suburban shares closed down 1/16 at 2 3/16 while Columbia shares closed off 1/16 at 12 13/16.
Gillette (G: news, msgs) warned after the market closed that it expects third-quarter sales down 1 percent year-to-year, below Wall Street estimates as Braun and stationary product sales softened. The company said economic softness and unfavorable exchange rates in Latin America and Western Europe affected sales for the quarter. Earnings are expected to increase 7 percent to 32 cents a share, in line with analysts estimates. Shares closed down 1 at 37 and were halted in after-hours trading.
JDS Uniphase (JDSU: news, msgs) announced after the market closed that the company's board approved a 2-for-1 stock split, subject to shareholder approval.
After the close of trading, Netopia (NTPA: news, msgs) said that it will pay an undisclosed amount for StarNet Technologies. The maker of Internet gear for medium-sized businesses plans to take an unspecified charge for the acquisition. Netopia sells software that allows real time collaboration on the Internet. Ahead of the deal, Netopia stock closed down 3/8 at 35 5/8.
Transport Corp. of America (TCAM: news, msgs) announced after the market closed that computer problems disrupted business and as a result, revenue and earnings per share will fall short of expectations for the third quarter. Analyst surveyed by First Call expect the company to earn 52 cents a share. The company, however, said this disruption is a one-time occurrence and they look forward to a strong fourth quarter. Shares closed off 3/8 at 13 1/2.
USWeb/CKS (USWB: news, msgs) stock gained in after-hours trading after the company started a push into building managed applications for customers. As part of the initiative, Microsoft (MSFT: news, msgs) will provide $67.5 million of funding. USWeb stock closed up 15/32 at 30 19/32, but rose to 32 1/2 on the Island trading network.
After the close of trading, Wells Fargo & Co. (WFC: news, msgs) and Ragen MacKenzie Group (RMG: news, msgs) announced they have reached a tentative agreement for Wells Fargo to acquire the brokerage firm. Under the deal, Wells Fargo will issue $18.75 worth of its common stock in exchange for each share of Ragen MacKenzie stock based on Well Fargo's closing price. Ragen Mackenzie shares closed up 3/8 at 17 5/8 while Wells Fargo closed up 3/8 at 38 7/8.
Earnings Advisories ...........
Gillette (G: news, msgs) shares may get shaved Wednesday morning after the razor specialist warned that sales will be below the year-ago period. However, the company, in an announcement after the markets closed, said it does expect earnings to be in line with the consensus estimate of 32 cents a share. Shares closed down 1 to 37. See full story.
Frontier Airlines (FRNT: news, msgs) shares sank 16 percent Tuesday after the company informed investors that second-quarter earnings will be lower than the 48-cent estimate on Wall Street. The airline company cited "slightly" lower than expected revenue and higher costs associated with maintenance, flight operations and the late delivery of a replacement aircraft. Shares fell 1 5/8 to close at 8 7/8.
International FiberCom Inc. (IFCI: news, msgs) shares closed down 11 percent after the company warned investors that its third-quarter report will fall short of the analysts' estimates. Revenue for the quarter will be $43 million to $46 million with earnings of between $500,000 and $1.2 million. The company didn't release a per share estimate. Analysts polled by First Call currently expect a profit of 15 cents a share. The engineering, development and maintenance services provider blamed temporary and unexpected delays in contract execution schedules, as well as "significant" unexpected costs. Last year the company posted third-quarter revenue of $25.7 million and earnings of $2.4 million. Shares lost 5/8 to closed at 5 5/16.
The Sportsman's Guide (SGDE: news, msgs) said widespread weakness in the mail-order industry hurt its third-quarter earnings. The company expects a third-quarter loss of $1 million, or 20 cents a share, while the analyst polled by First Call currently expects 8 cents a share. "Among the reasons for the shortfall in our current quarter are lower-than-anticipated customer response and higher costs due to higher-than-normal levels of backorders," said Gary Olen, chairman and chief executive officer. Last year the company posted a profit of 4 cents a share in the third quarter. Shares fell 13/16, or 18 percent, to close at 3 13/16.
Consolidated Products Inc. (COP: news, msgs) warned its fourth-quarter earnings will be about 21 cents a share, while analysts currently expect a profit of 23 cents a share. The shortfall was due to timing of anticipated new units that didn't occur as planned and higher labor costs. The company said it will open 40 Steak n Shake restaurants in fiscal 2000. Shares lost 2 11/16 to close at 10 5/16. See full story.
U.S. decliners for Tuesday................
Aetna (AET: news, msgs) shares tumbled 5 3/16, or 8 percent, to close at 61 3/4 after Warburg Dillon Read sliced the health care provider's stock rating to "buy" from "strong buy." A number of analysts expressed disappointment that the insurer didn't provide detailed guidance regarding projections at its Prudential Health Plan business. See full story.
AnswerThink (ANSR: news, msgs) shares fell 1 13/16 to 11 3/4 and shares of Think New Ideas (THNK: news, msgs) fell 16 percent after the combined companies' said third-quarter revenue is expected to be about $67 million to $69 million with earnings of 8 to 10 cents a share, compared to earlier estimates of revenue of $71 million to $73 million with earnings of 11 to 12 cents a share. Think New Ideas is to become a subsidiary of AnswerThink.
Franklin Electronic Publishers (FEP: news, msgs) shares lost 20 percent, or 1 3/16 to 4 3/4 after the company agreed to sell certain assets of its Franklin REX line of connected organizers to Xircom (XIRC: news, msgs) for $13.25 million. Xircom shares rose 13/16 to 43 1/8.
Interneuron Pharmaceuticals (IPIC: news, msgs) shares sank 11/16, or 35 percent, to 1 5/16 after the company said a U.S. District Court had rejected a proposed settlement for all product liability claims against the company. Interneuron makes the diet drug Redux, which was pulled form the market in 1997 amid concerns that the drug caused heart disease. The company now faces about 200 Redux-related lawsuits. The court said the settlement didn't meet requirements for limited fund class actions.
Micron Electronics (MUEI: news, msgs) shares lost 1 5/16 to 10 15/16 after PaineWebber cut its rating on the company to "attractive" from "buy." The company said net income increased to $13.7 million, or 14 cents a share, in the fourth quarter, double what Wall Street analysts were expecting. In the year-ago quarter, the direct sales computer maker earned $7.2 million, or 8 cents a share. See Hardware Report.
Net2Phone (NTOP: news, msgs) shares dropped 4 1/8 to 55 3/4 after the company announced that it lost 10 cents a share, excluding a one-time charge, for the fiscal fourth quarter. Analysts surveyed by First Call expected a loss of 13 cents. In the same quarter last year, the company lost 9 cents a share. Including the charge, the Internet telephony company lost $1.49 a share.
U.S. advancers for Tuesday.............
Designs, Inc. (DESI: news, msgs) shares surged 9/32, or 19 percent, to 1 25/32 after the company said it expects to meet or exceed its projected profit of 33 cents a share for fiscal 1999. The company said that despite the impact of Hurricane Floyd, it will post positive comparable store sales for Sept., 1999. Designs sells brand-name apparel and has about 110 outlet and mall stores.
Digital Island (ISLD: news, msgs) shares gained 2 1/2, or 11 percent, to 26 1/8 after the company said Grey Zone Productions, a full-service web development company, is using Digital Island's e-Network Services to provide e-marketing and e-sales solutions to its multi-national customers.
Shares of Genesys Telecommunications Laboratories [ gcti] increased 3 7/8, or 9.5 percent, to 44 3/4 after Alcatel SA (ALA: news, msgs), the French telecommunications group, said it agreed to buy the company in a stock swap worth about $1.5 billion. Alcatel shares fell 15/16 to 27. See full story.
Hambrecht & Quist (HQ: news, msgs) shares climbed 7 13/16 to 48 7/8 after the investment bank agreed to be acquired by Chase Manhattan (CMB: news, msgs) in a cash bid of $1.35 billion, or $50 a share. The move marks Chase's entry into equity underwriting. Chase shares fell 5/16 to 73 13/16. See full story.
ITXC Corp. (ITXC: news, msgs) was trading up 9 to 28 1/4 after the company offered 6.2 million shares at $12 a share in its stock debut. ITXC is an Internet-based voice and fax service provider. Lehman Brothers, CIBC World Markets, and First Analysis Securities were underwriters for the offer. See IPO Report.
Online medical Web site Medscape (MSCP: news, msgs) priced its 6.6 million share offering at $8 each, the middle of its lowered $7 to $9 range in a bid to raise $53 million with lead underwriter Donaldson, Lufkin & Jenrette. Shares advanced 5 11/16 to 13 13/16 on heavy volume. Medscape has drawn a 38 percent investment from CBS, which plans to sponsor a new medical information Web site with Medscape. See IPO Report.
Network Solutions (NSOL: news, msgs) shares climbed 12 11/16 to 85 1/2 after the Internet address registrar and the U.S. Department of Commerce agreed to let the company continue to oversee its own database of Web addresses for the next four years.
Shares of online grocer Peapod (PPOD: news, msgs) jumped 1 1/2, or 19 percent, to 9 1/2 after the company named Bill Malloy as its new chief executive. Malloy joins the company from AT&T's (T: news, msgs) wireless division, replacing co-founder Andrew Parkinson. See full story.
Playboy Enterprises (PLA: news, msgs) shares rose 1 15/16, or 8.7 percent, to 24 3/16 on news the company plans to sell a minority interest in its online business to the public in early 2000. |
