DAILY WRAP-UP
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Stocks dropped to levels not seen since 1998 as news of
more major accounting irregularities continued to erode
investors' already sagging confidence.
"It's a bad scene. They've undermined the confidence in this
marketplace," said Joe Liro, an equity strategist with Stone
& McCarthy Research Associates.
"How can you believe anybody's reports when you have a
couple dozen companies being forced to, as we say here,
restate earnings, which means lower earnings, because of
fraudulent accounting?"
Vivendi (NYSE: V) joined the list of major companies to
announce accounting woes. Its shares sank by as much as
40% in Paris on Tuesday before ending with a 30% fall, and
trading was suspended four times. Vivendi lost $4.69, or
21%, to $17.76 on 7.9 million shares traded.
Paris' Le Monde newspaper said Vivendi tried in October,
2001, to avoid booking a euro1.5 billion ($1.35 billion) loan
transaction that resulted from a deal involving the sale of
BskyB shares. Including the figure would have pushed
group results into the red for the first time and increased its
debt, Le Monde said.
European markets are reacting in the same way as their
North American counterparts to accounting issues.
Today the Standard & Poor's 500 Index lost 20.56 points, or
2.12%, to 948.09, its lowest level since Jan. 12, 1998, when
the index closed at 939.21. The Dow Jones Industrial
Average fell 102.04 points, or 1.12%, at 9,007.75. The
Nasdaq dropped 45.95 points, or 3.27%, at 1,357.85 led by
semiconductors and chip makers.
Intel Corp., (NASDAQ: INTC) the largest maker of
semiconductors fell 97 cents, or 5.5% to $16.57. National
Semiconductor Corp. (NYE: NSM) slid $4.58, or 17%, to
$22.75 after it had its rating slashed by Salomon Smith
Barney to "neutral" from "buy." Electronic Data Systems
Corp. (NYE: EDS) fell 33 cents to $30.12 after the world's
second-biggest computer-services company said it will cut
2,000 jobs this week.
Meanwhile, Irish drugmaker Elan (NYSE: ELN) dropped
$3.26, 05 66%, to $1.65 after Standard & Poor's said it may
lower its corporate credit rating on the company. Elan
recently said generic competition was having an impact on
its sales.
In small cap trading, the S&P 600 Index was down 7.36
points, or 3.26%, at 218.26, and the Russell 2000 Index was
down 14.89 points, or 3.33%, at 432.84.
Smallcap movers included Anadigics Inc. (NASDAQ: ANAD)
which lost $2.03, or 28.2%, to $5.24 on 4.27 million shares
traded. The company said in a press release that its third
quarter loss would be wider than analysts had been
forecasting. The company reiterated that its second-quarter
loss would be 29 cents a share but added that its
third-quarter loss would be about 33 cents a share. Analysts
polled by First Call had been looking for a second-quarter
loss of 29 cents and a third-quarter loss of 22 cents a
share. The sequential decline reflects across-the-board
softness in the older TDMA handset market and some
seasonal factors, the company said.
First Horizon Pharmaceutical Inc. (NASDAQ: FHRX) also fell,
losing $14.76, or 81%, to $3.51 on 16 million shares traded.
Slumping sales for two key products will drop second
quarter earnings well below analyst forecasts. The
Alpharetta, Ga., firm said sales of its Tanafed Suspension
pediatric liquid cold and allergy product, and of its Prenate
GT prescription pre-natal vitamin product were hurt by
competition from knock-off products. Excluding items, First
Horizons now sees second quarter results between
break-even and a profit of 2 cents a share, on revenue of
$25 to $26 million. Analysts polled by Thomson
Financial/First Call are currently looking for a profit of 8 cents
a share.
Quanta Services Inc. (NYSE: PWR) lost $6.22, or 68%, to
$2.92 on 5.1 million shares traded. The provider of
contracted network infrastructure maintenance services
says second quarter earnings will fall well below previous
expectations. Losse, excluding items, will now be 3 to 5
cents a share for the second quarter, and 45 to 55 cents a
share for the full year. Wall Street's consensus estimate
was for a profit of 19 cents and 94 cents per share,
respectively.
In Canadian trading, the Toronto Stock Exchange S&P/TSX
Composite Index was down 1.85 points at 7013.39, while
the S&P/TSX Venture Composite Index fell 8.02 points, or
0.69%, to 1150.90.
In commodities trading on the New York Mercantile
Exchange, August crude oil was down 4 cents at $26.77,
and August natural gas was down 5 cents at $3.192. August
gold was down 5 cents at $314.50.
The Canadian dollar was trading at US$0.6549.
Overseas markets were mostly lower. London's FTSE 100
was losing 3% at 4547, and Germany's Xetra DAX was
down 4.5% at 4170. Japan's Nikkei 225 rose 0.3% to
10,622, while Hong Kong's Hang Seng closed down 1% to
10,492.
TODAY'S HEADLINES
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Healthcare
DESIGNER GENES FROM ERIK THE RED
The Vikings who arrived in Iceland couldn't possibly
have predicted they would play a major role in genetic
mapping a thousand years later. But Icelandís stable
population base makes for an ideal gene pool.
smallcapcenter.com
Natural Resources
GOLDEN STAR FALLS ON SHARE OFFERING
The mining firm registered in the U.S. and restated a
preliminary prospectus in Canada to sell 14 million
units to North American investors. The company will
use the proceeds from the offering to further its
interests in South America.
smallcapcenter.com
Computers/Telco, Services
SUREBEAM TUMBLES ON AILMENTS NEWS
A report published today said that Congressional
employees experienced symptoms like bloody noses
and headaches after handling mail that was treated
through systems designed to kill anthrax.
smallcapcenter.com
Read these small cap stories and more at smallcapcenter.com
SMALL CAP MOVERS
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ANADIGICS Inc. (NSD: ANAD)
Anadigics Inc. (NASDAQ: ANAD) lost $2.03, or 27.92%, to close at
$5.24 on 4.27 million shares traded. The company said in a press
release that its third quarter loss would be wider than analysts had
been forecasting. The company reiterated that its second-quarter loss
would be 29 cents a share but added that its third-quarter loss would
be about 33 cents a share. Analysts polled by First Call had been
looking for a second-quarter loss of 29 cents and a third-quarter
loss of 22 cents a share. The sequential decline reflects
across-the-board softness in the older TDMA handset market and some
seasonal factors, the company said.
smallcapcenter.com
First Horizon Pharmaceuti (NSD: FHRX)
First Horizon Pharmaceutical Inc. (NASDAQ: FHRX) was in a free-fall,
losing $14.73, or 80.76%, to close at $3.51 on 16.46 million shares
traded. Slumping sales for two key products will drop second quarter
earnings well below analyst forecasts. The Alpharetta, Ga., firm said
sales of its Tanafed Suspension pediatric liquid cold and allergy
product, and of its Prenate GT prescription pre-natal vitamin product
were hurt by competition from knock-off products. Excluding items,
First Horizons now sees second quarter results between break-even and
a profit of 2 cents a share, on revenue of $25 to $26 million.
Analysts polled by Thomson Financial/First Call are currently looking
for a profit of 8 cents a share.
smallcapcenter.com
Netflix Inc. (NSD: NFLX)
NetFlix Inc. (NASDAQ: NFLX) closed up $2.03, or 14.11%, at $16.42 on
644,300 shares traded. The companyís subscriber base increased by
118% to 670,000 at the close of the second quarter. NetFlix cited the
increasing popularity of the DVD format for the strong growth.
Average monthly churn was 6.7% for the quarter. The company will
release financial results for the period after market close on July
24.
smallcapcenter.com
Quanta Services Inc. (NYE: PWR)
Quanta Services Inc. (NYSE: PWR) lost $6.22, or 68.05%, to close at
$2.92 on 5.13 million shares traded. The provider of contracted
network infrastructure maintenance services says second quarter
earnings will fall well below previous expectations. Losses,
excluding items, will now be 3 to 5 cents a share for the second
quarter, and 45 to 55 cents a share for the full year. Wall Street's
consensus estimate was for a profit of 19 cents and 94 cents per
share, respectively.
smallcapcenter.com
Viasys Healthcare Inc. (NYE: VAS)
Viasys Healthcare Inc. (NYSE: VAS) closed down 3.40, or 19.54%, at
$14 on 2.32 million shares traded. The company said second-quarter
earnings will fall below analyst forecasts. Quarterly profit, before
special items, will be 20 to 22 cents a share, while the current
consensus Wall Street estimate is for a profit of 27 cents a share.
smallcapcenter.com
TODAY'S HIGHLIGHTS
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Market Summary At 6:17:00 P.M. ET
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Symbol Close Change Change(%) Market Name
.DJI 9007.75 -102.04 -1.12 DOW JONES INDUSTRIAL
NYA N/A N/A N/A NYSE COMPOSITE
COMP 1357.82 -45.98 -3.28 NASDAQ COMPOSITE
XAX 884.22 -5.96 -0.67 AMEX COMPOSITE INDEX
SPX 948.09 -20.56 -2.12 S&P 500
SML 218.26 -7.36 -3.26 S&P 600 SMALLCAP
NDI 192.53 -5.51 -2.78 INDIVIDUAL INVESTORS 500
IV.JX 1150.90 -8.02 -0.69 CANADIAN VENTURE EXCHANGE
IT.TSXCI 7013.39 -132.22 -1.85 S&P/TSX COMPOSITE
Most Active Stocks At 6:17:00 P.M. ET
(Market Capitalization Between $10,000,000 and $750,000,000)
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NASDAQ / OTC
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Symbol Volume Close Change Company Name
WCOME 817583600 0.10 0.04 WorldCom Group
FHRX 16460100 3.51 -14.74 First Horizon Pharmaceuti
ADVS 9527600 17.04 -7.21 Advent Software Inc.
CNXT 9347900 1.50 -0.12 Conexant Systems Inc.
ENRNQ 8223500 0.09 -0.01 Enron Corp.
AMEX
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Symbol Volume Close Change Company Name
BGO 2943400 1.38 0.02 Bema Gold Corporation
IMH 2040300 11.93 -0.25 Impac Mortgage Holdings
ANH 1960900 12.83 -0.06 Anworth Mortgage Asset
PAX 1481600 3.00 -1.95 Paxson Communications
ECO 982100 1.13 -0.02 Echo Bay Mines Ltd.
TSE
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Symbol Volume Close Change Company Name
T.ELD 1804200 1.18 -0.03 Eldorado Gold Corporation
T.BGO 1429100 2.10 0.08 Bema Gold
T.MGX 675800 2.33 -0.17 Mosaic Group
T.CBJ 602200 1.72 0.04 Cambior Inc.
T.NGX 557800 1.50 -0.09 Northgate Exploration Ltd.
CDNX
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Symbol Volume Close Change Company Name
V.HTP 249900 0.40 0.05 Hilton Petroleum
V.DML 210800 0.57 0.00 Donner Minerals
V.KRT 180100 1.03 0.10 Kensington Resources Ltd.
V.GNO 105300 0.16 -0.01 Genoil Inc.
V.COT 100200 0.33 -0.02 Conac Software Corporation
Top Percent Gainers At 6:17:00 P.M. ET
(Market Capitalization Between $10,000,000 and $750,000,000)
************************************
NASDAQ / OTC
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Symbol Volume Close Change %Gain Company Name
WCOME 817583600 0.10 0.04 66.67 WorldCom Group
VSCI 3600 1.20 0.30 33.33 Vision-Sciences Inc.
FVCX 254300 0.70 0.17 32.08 First Virtual Communicati
NGWY 63400 0.18 0.04 28.57 Netgateway Inc.
SMTX 46600 1.72 0.37 27.41 SMTC Corporation
AMEX
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Symbol Volume Close Change %Gain Company Name
BVA 37900 0.69 0.18 35.29 Bionova Holding Corp.
TWW 531900 0.50 0.06 13.64 Terremark Worldwide Inc.
APT 6300 0.85 0.10 13.33 Alpha Pro Tech Ltd.
MXR 23800 0.43 0.05 13.16 Medix Resources Inc.
SEV 338400 2.66 0.26 10.83 Seven Seas Petroleum Inc.
TSE
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Symbol Volume Close Change %Gain Company Name
T.GNS 149900 0.38 0.12 46.15 Gensci Regeneration
Sciences Inc.
T.TIO 279800 0.40 0.07 21.21 Tiomin Resources Inc.
T.WZL 16100 0.90 0.15 20.00 WENZEL DOWNHOLE TOOLS LTD
T.FSR 78200 1.43 0.17 13.49 First Silver Reserve Inc.
T.EUG 125000 0.45 0.05 12.50 Eurogas Corp.
CDNX
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Symbol Volume Close Change %Gain Company Name
V.HTP 249900 0.40 0.05 14.29 Hilton Petroleum
V.KRT 180100 1.03 0.10 10.75 Kensington Resources Ltd.
V.RGW 30200 2.70 0.24 9.76 Ridgeway Petroleum Corp.
V.TKO 5000 0.60 0.05 9.09 Taseko Mines Ltd.
V.AAM 26000 0.79 0.06 8.22 Atacama Minerals Corp.
Top Percent Losers At 6:17:00 P.M. ET
(Market Capitalization Between $10,000,000 and $750,000,000)
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NASDAQ / OTC
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Symbol Volume Close Change %Loss Company Name
FHRX 16460100 3.51 -14.74 -80.76 First Horizon Pharmaceuti
XING 348300 1.50 -1.09 -42.08 Qiao Xing Universal Tele.
AMRN 132500 5.75 -2.80 -32.75 Amarin Corporation plc
GENU 568700 2.00 -0.93 -31.74 Genuity Inc.
BINX 6100 3.07 -1.38 -31.01 Bionx Implants Inc.
AMEX
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Symbol Volume Close Change %Loss Company Name
PAX 1481600 3.00 -1.95 -39.39 Paxson Communications
IDN 91700 3.50 -1.10 -23.91 Intelli-Check Inc.
FPU 5200 14.05 -4.05 -22.38 Florida Public Utilities
XLA 169600 0.64 -0.16 -20.00 Xcelera Inc.
AVN 292200 1.58 -0.27 -14.59 AVANIR PHARMACEUTICALS
TSE
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Symbol Volume Close Change %Loss Company Name
T.XCL 267300 0.51 -0.12 -19.05 X-cal Resources Ltd.
T.COM 300 2.00 -0.45 -18.37 Cardiome Pharma Corp.
T.SXC 10300 0.51 -0.09 -15.00 Systems Xcellence
T.RXD 21000 0.51 -0.09 -15.00 Rex Diamond Mining
Corporation Ltd.
T.IMX 20400 7.40 -1.30 -14.94 Imax Corp.
CDNX
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Symbol Volume Close Change %Loss Company Name
V.CDH 2500 1.10 -0.20 -15.38 Corridor Resources Inc.
V.BKM 1500 4.75 -0.75 -13.64 Pacific Booker Minerals Inc.
V.TMC 35000 0.26 -0.04 -13.33 TM Bioscience Corporation
V.GCU 12400 1.30 -0.20 -13.33 Gold Canyon Resources
V.QBX 7300 0.67 -0.10 -12.99 Cubix Investments Inc. |
