Merril trying to give RIMM a HAND .....rofl
DJ MARKET TALK: Merrill Says RIMM Opportunity More Than Seen
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
1:49 (Dow Jones) After meeting with senior management of Research In Motion
(RIMM), Merrill says company's opportunity is even bigger than Merrill
thought. Winning only a small fraction of the voice handset market, which
Merrill believes the company can achieve, should drive significant revenue
and valuation upside over the next six to 18 months. Says financial model
has substantial upside in calendar 2002, which makes valuation more
reasonable. (TG)
1:38 (Dow Jones) Exchange volume figures show CME has surpassed CBOT volume
for the month of January, with CBOT seeing volume of 20.9 million and the
CME seeing volume of 31.7 million. A CME spokeswoman said the CME has beat
the CBOT in monthly volume a few times in the past, but the CME has never
had more volume than the CBOT for an entire year. (CMN)
1:27 (Dow Jones) Off-floor technical trader says March S&PS broke uptrend
with the move under 1370. That suggests March S&Ps could fall to the
1340-1335 level soon. The short-term trend has turned down, but the
intermediate trend remains bullish, as long as the market holds the 1335
level. (DMC)
1:16 (Dow Jones) Most mutual funds that invest in stocks rebounded in
January after a difficult 2000, and some of last year's worst casualties
staged the biggest rallies. Science and tech funds returned 9.38%, on
average, in January after losing 33.92% in 2000. Telecom funds returned an
average 14.2% in January, after falling 35.07% in 2000. "It was a reflex
bounce as much as anything," said Lee Kopp, president of Kopp Investment
Advisors. By comparison, the average diversified U.S. stock fund returned
2.71% in January after returning negative 1.67% in 2000. (AMB)
1:06 (Dow Jones) Stock weakness picking up pace. DJIA off 91 at 10892,
Nasdaq Comp down 81 at 2701, and S&P 500 falls 18 at 1354. This week was
huge for data, but with numbers out of the way and 1Q earnings winding down,
not much to look for between now and FOMC in March, with the exception of
specific data. Technically, the DJIA turning back after a brief move above
the 11000 mark isn't so hot, and if the Nasdaq can't hold 2700 on the close,
the index could set its sights on 2500. (TG)
12:54 (Dow Jones) The 0.2% increase in the unemployment rate was the result
of a 300+K increase in the number of unemployed people in an essentially
unchanged civilian labor force. This is the sharpest increase since April
1995 (+492K), and has only occurred three times in the last 10 years. With
consumer credit at a record high percent of personal income (18%), the
impact of any increase in unemployment has a magnified effect on
consumption, which was the primary engine driving the recent expansion. (GK)
12:44 (Dow Jones) This may not be saying much, but Viad (VVI) can
"outperform the economy," said Salomon Smith Barney analyst Michael Millman,
who initiated coverage with a buy/high risk rating and set a $33 price
target. The supplier of payment services should benefit from trends in
immigration and bank check outsourcing, Millman said. Shares are up 66 cents
to 24.35. (KJT)
12:31 (Dow Jones) Here comes the Sun, but other technology giants are not
far behind. Sun Microsystems (SUNW) is down $1.13 to $30 in advance of a
meeting with analysts next week. An observation by Bear Stearns analyst
Andrew Neff may not be helping. International Business Machines (IBM) and
Hewlett-Packard (HWP) are now focussing on the same Unix operating system
that Sun has long embraced, Neff said in a note to clients. "It used to be a
race with Sun running in one direction and the other two running in the
opposite direction - now it's a race with all three running in the same
direction." (KJT)
12:28 (Dow Jones) Compliments of an active Fed, CME set a record volume
month in Jan at 31.7 million contracts. That's 76% above last Jan and up
from the previous record of 27.8 million set in Sep '98. The jump in volume
comes from a record pace in interest rate and equity products, 22.7 million
and 6.6 million, respectively. Eurodollars themselves traded a record 17.5
million alone. (DMC)
(DOW JONES) DJN: DJ MARKET TALK: Merrill Says RIMM Opportunity More Than Se
DJN: DJ MARKET TALK: Merrill Says RIMM Opportunity More Than Seen
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
1:49 (Dow Jones) After meeting with senior management of Research In Motion
(RIMM), Merrill says company's opportunity is even bigger than Merrill
thought. Winning only a small fraction of the voice handset market, which
Merrill believes the company can achieve, should drive significant revenue
and valuation upside over the next six to 18 months. Says financial model
has substantial upside in calendar 2002, which makes valuation more
reasonable. (TG)
1:38 (Dow Jones) Exchange volume figures show CME has surpassed CBOT volume
for the month of January, with CBOT seeing volume of 20.9 million and the
CME seeing volume of 31.7 million. A CME spokeswoman said the CME has beat
the CBOT in monthly volume a few times in the past, but the CME has never
had more volume than the CBOT for an entire year. (CMN)
1:27 (Dow Jones) Off-floor technical trader says March S&PS broke uptrend
with the move under 1370. That suggests March S&Ps could fall to the
1340-1335 level soon. The short-term trend has turned down, but the
intermediate trend remains bullish, as long as the market holds the 1335
level. (DMC)
1:16 (Dow Jones) Most mutual funds that invest in stocks rebounded in
January after a difficult 2000, and some of last year's worst casualties
staged the biggest rallies. Science and tech funds returned 9.38%, on
average, in January after losing 33.92% in 2000. Telecom funds returned an
average 14.2% in January, after falling 35.07% in 2000. "It was a reflex
bounce as much as anything," said Lee Kopp, president of Kopp Investment
Advisors. By comparison, the average diversified U.S. stock fund returned
2.71% in January after returning negative 1.67% in 2000. (AMB)
1:06 (Dow Jones) Stock weakness picking up pace. DJIA off 91 at 10892,
Nasdaq Comp down 81 at 2701, and S&P 500 falls 18 at 1354. This week was
huge for data, but with numbers out of the way and 1Q earnings winding down,
not much to look for between now and FOMC in March, with the exception of
specific data. Technically, the DJIA turning back after a brief move above
the 11000 mark isn't so hot, and if the Nasdaq can't hold 2700 on the close,
the index could set its sights on 2500. (TG)
12:54 (Dow Jones) The 0.2% increase in the unemployment rate was the result
of a 300+K increase in the number of unemployed people in an essentially
unchanged civilian labor force. This is the sharpest increase since April
1995 (+492K), and has only occurred three times in the last 10 years. With
consumer credit at a record high percent of personal income (18%), the
impact of any increase in unemployment has a magnified effect on
consumption, which was the primary engine driving the recent expansion. (GK)
12:44 (Dow Jones) This may not be saying much, but Viad (VVI) can
"outperform the economy," said Salomon Smith Barney analyst Michael Millman,
who initiated coverage with a buy/high risk rating and set a $33 price
target. The supplier of payment services should benefit from trends in
immigration and bank check outsourcing, Millman said. Shares are up 66 cents
to 24.35. (KJT)
12:31 (Dow Jones) Here comes the Sun, but other technology giants are not
far behind. Sun Microsystems (SUNW) is down $1.13 to $30 in advance of a
meeting with analysts next week. An observation by Bear Stearns analyst
Andrew Neff may not be helping. International Business Machines (IBM) and
Hewlett-Packard (HWP) are now focussing on the same Unix operating system
that Sun has long embraced, Neff said in a note to clients. "It used to be a
race with Sun running in one direction and the other two running in the
opposite direction - now it's a race with all three running in the same
direction." (KJT)
12:28 (Dow Jones) Compliments of an active Fed, CME set a record volume
month in Jan at 31.7 million contracts. That's 76% above last Jan and up
from the previous record of 27.8 million set in Sep '98. The jump in volume
comes from a record pace in interest rate and equity products, 22.7 million
and 6.6 million, respectively. Eurodollars themselves traded a record 17.5
million alone. (DMC)
12:20 (Dow Jones) Shares of Express Scripts (ESRX) have risen nearly 225%
over the past year, but that's no reason to put off purchases, says Banc of
America Securities analyst Partick Hojlo. He tells investors to "purchase
the stock" ahead of the pharmacy management company's Feb. 7 earnings
announcement and ups his price target to $120 from $95. The stock's now at
$93.50, up $2.28 on the day. (KJT)
12:14 (Dow Jones) March Nasdaq adds to losses in light volume trade. That
weakness is tearing down March S&Ps, floor trader says. He believes both
markets are seeing new shorts enter. "We're down with unemployment and
there's a lot time before the next FOMC meeting." (DMC)
12:12 (Dow Jones) American Express' (AXP) calls traded robustly Friday
morning. Options volatility rose as investors bought these bullish calls on
renewed takeover speculation, said a floor specialist who trades Amex
options. American Express has been a persistent target of on-again off-again
takeover rumors, linking it with Citigroup or Morgan Stanley. On Friday, the
stock was ahead 3.4% or $1.63 to $49.13. Amex's February 50 calls were among
the most heavily traded. At the American Stock Exchange, these calls gained
95 cents to $1.50 on volume of 5,314 contracts, with 8,133 contracts trading
at other exchanges, compared with open interest of 7,406. Company officials
weren't immediately available for comment. (KXT)
12:07 (Dow Jones) JagNotes.com Inc.'s (JNOT) battered stock fell 42% to 15
cents Friday after the company said it sold its webcast unit, JAGfn
Broadband LLC, to CALP II Ltd. Partnership for about $1.5 million. The move
could help stave off bankruptcy, but it eliminated a key hope for
shareholders and underscored the company's dependance on an out-of-favor
subscription-based business model. (RTR)
12:03 (Dow Jones) SG Cowen entertainment analyst Ed Hatch sees the
CitySearch online city guide service as a potential catalyst for growth at
USA Networks Inc. (USAI). According to a note from Hatch issued Friday, "if
investors see the $50 MM of annual losses move toward zero in 12-15 months
they will be excited." The business, focused on providing local information
and transactions, could create 5% to 6% of growth on a $1 billion cash-flow
base, Hatch says. (BS)
11:48 (Dow Jones) The slump in the stock market hasn't scared sell-side
analysts away from online brokerage firms, as Banc of America Securities'
Robert Sobhani just initiated coverage of the group. He is positive
long-term, but cautious in the short term, saying brokers' hypergrowth era
is over, but plenty of growth remains. He rates TD Waterhouse Group Inc.
(TWE) and Knight Trading Group (NITE) as buys; and issues market-performer
ratings on Charles Schwab Corp. (SCH), E*Trade Group Inc. (EGRP), Ameritrade
Holding Corp. (AMTD) and CSFBdirect (DIR). All of these stocks were recently
down, except for TD Waterhouse, which is up 2.3%. (GFC) |
