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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (790)	3/29/2001 12:26:05 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

MARKET TALK-HK: Macquarie To Issue Call Wt On PCCW 1229 [Dow Jones] Macquarie Bank plans to issue 6-month European call warrant on Pacific Century CyberWorks (0008). Strike price to be set at 110% of stock's closing price today; warrant (1-for-1) to be priced at 14.784% of closing price. Implied volatility around 62%, not cheap vs existing peers. Although PCCW shares may rebound after steep fall today, too many call warrants available now and there's no need to subscribe to new issue, which will only be listed on Apr 4.(IVW) 1219 [Dow Jones] One important implication of Pacific Century CyberWorks' (0008) goodwill write-off which has left company with negative book value is that PCCW now needs shareholders' approval for any future acquisitions because they're substantial transactions for shareholders. Shares now down 11% at $3.10.(STT) 1216 [Dow Jones] Cosco Pacific's (1199) FY00 net profit likely up 3.6% at US$141 million, according to analysts' average forecast. Credit Lyonnais, which expects US$139.7 million, says company's "dull performance" likely due to weak container leasing business offsetting growth in port operations; adds growth prospects look less attractive. Doesn't expect Cosco group's internal restructuring plan to have much impact on Cosco Pacific; says valuation cheap but stock lacks catalyst to perform in near term; rates it as long-term buy. Stock now down 0.6% at $4.25.(IVW) 1205 [Dow Jones] Jilin Chemical (0368) expected to report FY00 net loss of CNY690 million later today, due to massive CNY670 million charge for asset write-downs and staff redundancies as warned by company previously, says Salomon Smith Barney analyst Leslie Chow; FY99 net profit CNY149 million. Expects high cost of crude oil in 2H00 to push Jilin deeper into the red. Maintains sell rating. Shares up 5.4% at 59 cents.(STT) 1144 [Dow Jones] China Everbright (0165) outperforms broad market, now up 3.1% at $6.75, on local newspaper reports mainland parent China Everbright Group has already applied to CSRC to list two financial subsidiaries, reassuring investors listing plan progressing well. However as volume only worth $34.7 million, traders say buying mostly knock-on reaction as listing plan long expected.(STT) 1134 [Dow Jones] Property investor shares may enjoy knee-jerk buying if rumor HKMA looking to buy 14 floors at IFC Phase 2 (building completion due in 2003) for $3.9 billion (about $11,470 psf) materializes, says Vickers Ballas; however adds buying may be short-lived as "increasingly evident" office rents under pressure this year; continues to underweight property investors. Swire Pacific (0019) down 2.1% at $47.20, Wharf (0004) down 2.1% at $20.55 and Amoy Properties (0101) down 1.2% at $8.55.(IVW) 1129 [Dow Jones] Although Pacific Century CyberWorks' (0008) EBIDTA expected to post slower growth in FY01, some analysts predict company should meet its total interest and fee obligation in FY01. "Even if we assume interest rates remain static and that cash-flows from former HKT asset don't grow, we still believe company will have sufficient coverage to meet interest payments by at least 3X."(STT) 1125 [Dow Jones] Although Pacific Century CyberWorks (0008) indicated measures to limit capex (such as capping B2C expenditure to US$200 million in FY01 and further Internet-related investments will be funded only through sale of previous investments), DBS Securities concerned cost cutting may not take place soon or be drastic enough; expects market to also focus on operating cost cuts; adds management doesn't seem to be in rush to dispose assets. Stock down 12.2% at $3.05.(IVW) 1116 [Dow Jones] Greencool (8056) down 1.6% at $1.80, vs HSI' 2.4% fall, after management revealed orders at hand in first 2 months in 2001 (CNY450 million) already much higher than in first 9 months in 2000 (CNY107 million); FY00 was good year as net profit 15% above forecast stated in IPO prospectus.(IVW) 1111 [Dow Jones] Although Pacific Century CyberWorks' (0008) 50%-owned JV Reach reported FY00 pro-forma revenue of $7.34 billion and EBITDA of $2.79 billion attributable to PCCW, better than DBS Securities' forecast, brokerage cautions PCCW (and JV partner Telstra) being Reach's key customers for first few years, any further decline in PCCW's "IDD and IPLC market share" may have "follow-on ramification" on Reach. PCCW shares down 11.5% at $3.075.(IVW) 1105 [Dow Jones] Outlook for Pacific Century CyberWorks (0008) shares depends on whether management reveals clear strategy in next 90 days to identify areas in which to boost EBITDA, says analyst at European brokerage; adds management expected to announce plans in 3 months. But some analysts maintain their bearish stance, saying with C&W PLC's 15.3% stake sale still looming, shares still vulnerable.(STT) 1058 [Dow Jones] China Unicom (0762) has mainland's second largest and probably "best quality" broadband network, says Deutsche Bank; with more than 56,000 km of high-speed fiber-optic cables, DB points out current data revenue run rate of CNY100 million per annum doesn't justify company's huge capex program. DB now rates Unicom as market-perform but given share price now below $9, may consider changing recommendation to buy; target price $11; stock down 2.9% at $8.30.(IVW) 1046 [Dow Jones] Pacific Century CyberWorks (0008) will post good revenue in future as company won't be threatened by competition for some time and will continue to enjoy pricing power as it shifts focus to high-margin businesses like IP backbone JV with Telstra, says Prudential-Bache; PCCW's revenue in core telecom services fell 7% in FY00, mostly due to lower IDD revenues on fierce competition. Shares now down 10% to $3.125.(STT) 1040 [Dow Jones] Heavy selloff in Pacific Century CyberWorks (0008), now down 10.8% at $3.10, mainly due to concerns about company's cash flow and ability to repay debt going forward, say analysts. Prudential-Bache predicts it might spin off or sell various divisions to fund outstanding US$4.7 billion loan; however adds it's unlikely to dispose investment portfolio valued at US$1.29 billion (after mark down) as investments integral part of company's overall business plan.(STT) 1024 [Dow Jones] Nikkei ends down 3% at 13348 midday on futures-led selling along with active sales centered on high-tech stocks following Nasdaq's 6% slide overnight; 13300 level expected to hold in afternoon. Falls also due to weaker-than-expected Japan February output data, amid lack of active buyers, as institutional investors, dealers reluctant to take fresh positions ahead of FY-end book close tomorrow.(YOT) asia.biz.yahoo.com