"Stocks in the Spotlight's"
A CURRENT UPDATE
Sunday - September - 22 - 2002
"Current" updates on "Spotlight" stocks
The "Current Update" are stocks that were covered by the Spotlight newsletter in the past. Just because a stock is not listed on the Current Up-Date does not mean that we have dropped that particular stock, it only means that there are no current news. If and when we do drop a stock, we will inform you as to why we are dropping that particular stock. We pick up or drop coverage weekly as items of importance or prices dictate the showing of any particular stock!
Closing prices are from the market close on Friday 9/20/2002
Up - Off - Flat = the change from last week
Nasdaq symbol in ( ) = Quote -- News in ( ) = news
Clicking on each will take you there
AOL Time Warner, Inc. (AOL) (Internet & Communications), $12.53 (off $0.36). On 9/17/2002, Amalgamated Bank's Longview Fund Files for Lead Plaintiff Status in Federal Class Action Lawsuit Against AOL Time Warner for Alleged Accounting Fraud (more) On 9/17/2002, Minnesota Pension Board Alleges Fraud By AOL Time Warner (more) On 9/17/2002, Calls Intensify for Ouster of AOL Chairman (more) On 9/19/2002, America Online and RealNetworks Expand Relationship to Enable Streamed Interactive Marketing Services Using Helix Universal Servers (more) On 9/19/2002, Case Stays AOL Chairman Despite Speculation (more) AOL has no PE and the 52 week trading range is 8.70 - 39.21. There are no support levels to work with in this current price range. The slew of negative news is not good and offers a strong chance of another new 52 week low. There is trouble brewing in this one and a good rule is to avoid companies with trouble when there are so many bargains. There are better places to be. Watch & Wait!
Cisco Systems, Inc. (CSCO) (Computer Networks), $12.08 (off $0.97). On 9/16/2002, Cisco ONS 15600 Extends Optical Portfolio and Aims at Significantly Reducing First Cost and Provisioning Time (more) On 9/16/2002, US Signal Selects Cisco Optical Multiservice Switching Platform for Evaluation (more) On 9/16/2002, Cisco Supercharges the Performance of the Cisco 7200 Series Router, One of the Industry's Most Widely Deployed Mid-Range Routers (more) On 9/16/2002, Cisco Announces New Internet OSS Domain Manager Product Suite (more) On 9/17/2002, Cisco says European business climate still tough (more) On 9/17/2002, Cisco Expands Modular Switch Portfolio (more) On 9/18/2002, Cisco Systems Executives Certify Company Results for Fiscal Year 2002 (more) On 9/18/2002, Cisco Says Backlog Fell to $1.4 Billion From $2 Billion In Past Fiscal Year (more) On 9/19/2002, Cisco sales expectations suffer after orders fall (more) Cisco has a PE of 48.00 and a 52 week range of 11.04 - 21.92. CSCO is one of the most popular stocks on the market. The company is one to own, either long term or short term, but the PE is high and a strong sell off could bring another new 52 week low, although, it will be hard catching this very active stock at the bottom. "Hold" here with best entry near $11!
Cypress Semiconductor (CY) (Semiconductors), $7.53 (off $1.61). On 9/16/2002, Cypress Signs Agreement With Infineon and Micron To Co-Develop CellularRAM (more) On 9/17/2002, Hsinchu, Taiwan-based Weida Semiconductor, Inc. will offer a line of high-volume standard SRAM products tailored to meet the needs of the Taiwan market, stressing flexibility, value for money and extremely rapid response to customer needs. Weida Semiconductor is a Taiwan company founded in 1995 and acquired by Cypress Semiconductor, the world's second-largest SRAM manufacturer, in 2000. Weida resells certain Cypress components to the China market, utilizing its own integrated sales, marketing, engineering and support operations. (more) On 9/18/2002, Cypress's QuadPort DSE Available in Italtel's FlexBench Rapid Prototyping System (more) On 9/19/2002, Cypress MicroSystems Offers LIN Bus Design Kit for Programmable System on Chip --PSoC- Microcontroller (more) Cypress has no PE and a 52 week range of 7.49 (recent) - 26.20. Nice company to own for the longer term. Expect a return to profits once the economy improves, but a continued tough road until. There is slight resistance at $10. There is a 6 1/4 low, back in late 98, but brief. There is strong support in the $7 to $8 area back in 98 and early 99. Owning the stock under $9 should work just fine for the long term investor. A year from now could mean decent profits on CY, but the weak semiconductor market could bring under $7 and a possible new 52 week low first. "Hold" here with best entry under $7!
Dell Computer Corporation (DELL) (Computer hardware), $24.83 (off $1.97). On 9/16/2002, Dell Computer Bought Back 14 Million Shares For $618 Million In 2nd Quarter (more) On 9/17/2002, Menasha Corporation Deploys Oracle and SAP On Dell PowerEdge Servers, Red Hat Linux (more) On 9/17/2002, Dell High-Performance Computing Clusters Power Multiple Research Projects at Penn State (more) On 9/19/2002, U.S. Military Academy At West Point Selects Dell Technology for Fall Programs (more) On 9/19/2002, Customers Increasingly Choose Dell Network Storage Systems According to New Industry Research (more) Dell has a PE of 54.95 and a 52 week range of 16.01 - 30.52. The problem with DELL is the PE is too high to buy for this current market. The stock has been trading between $23 and $28 all year. The PC business is expected to expand, once the economy gets going again, but how much and when is still an unknown. There is room for a close under the $20 area if the markets sell off hard. "Hold" here and keep the $27.50 PUT, with a best entry under $21!
Fonar Corporation (FONR) (Medical equipment & supplies), $1.02 (off $0.10). On 9/16/2002, The American College of Radiology (ACR) recently surveyed Stand-Up MRI of Islandia, and as a result awarded a three-year term of accreditation in Magnetic Resonance Imaging (MRI). (more) On 9/20/2002, FONAR Corporation, The MRI Specialist(TM), announced that the first Stand-Up(TM) MRI in Europe is now operating at the University of Aberdeen, Woodend Hospital, Aberdeen, Scotland, U.K. Francis W. Smith, M.D., a director at the University's new Positional MRI Research Centre, said, "Following our initial applications we have started scanning patients and are very happy with the results we are getting. We are especially delighted with the image quality." Dr. Smith added, "It is remarkable how the patient table, which raises and lowers the patient, and tilts all the way to the recumbent position, is so straightforward and easy to use. I am also most impressed with the applications support we have received from FONAR." (more) Fonar has no PE and a 52 week range of 0.95 - 2.15. FONR has been a favorite of ours for some time. We finally heard about a couple of sales of the "Stand-Up MRI" from GE, but GE has been quiet since. Maybe Fonar should talk to a another competitor. Revenues are not really growing and profits still seem to be a dream for some distant time in the future. The stock is more of a trading stock than anything else. The biggest problem is there are millions of shares trading, no profits and continued big losses, but the stock seems to always go up and down. Entry on anything under $1 should work just fine, but the weak market could bring a new 52 week low.
Hypertension Diagnostics, Inc. (HDII) (Medical Equipment & Supplies), $0.729 (off $0.041). On 9/20/2002, Hypertension Diagnostics, Inc. announced financial results for the fiscal year ended June 30, 2002. Revenue for the fiscal year ended June 30, 2002 totaled $549,198 compared to $2,047,304 in the prior year ended June 30, 2001. The Company incurred a net loss of $6,369,666 for fiscal year 2002 or $1.07 per share compared with a net loss of $2,254,851 for fiscal year 2001 or $0.42 per share. Included in the net loss of $6,369,666 for fiscal year 2002 are non-cash expense charges that relate to the following areas: the fair value of Common Stock and warrants issued to certain parties for investor communications and public relations consulting services -- $2,348,100; and a beneficial conversion and amortization of debt discount in connection with a convertible debt private placement -- $397,360. As of June 30, 2002, the Company had cash and cash equivalents of $1,824,238. (more) Hypertension has no PE and a 52 week range of 0.59 - 6.00. Products that help doctors learn more about our body is always worth a closer look. The stock has fallen off a cliff and with big losses and poor revenue. I find that paying an exorbitant amount mentioned above of over $2 million for investor communications and public relations consulting services a joke. Look at the price. What a total failure. The company certainly needs to look for this service somewhere else. It looks to be money problems on the way and it will be hard to get the stock back up very far. Too risky for most. Take the loss and move to maybe EXNT for a chance at getting the money back!
Ingram Micro, Inc. (IM) (Computer hardware), $13.45 (up $0.07) On 9/16/2002, GN Netcom, a world leader in hands- free communications solutions, is pleased to announce that they have entered into a distribution relationship with Ingram Micro Inc., the largest global wholesale provider of technology products and supply chain management services. Ingram Micro will distribute GN Netcom corded and wireless headsets throughout North America. (more) On 9/18/2002, Ingram Micro Outlines Profit-Enhancement Targets, Updates Guidance (more) On 9/18/2002, Ingram Micro Expects 3rd-Quarter Earnings to Meet or Exceed Its Forecast (more) On 9/18/2002, Ingram Micro Plans Major Restructuring to Improve Profits by 2004 (more) Ingram has a PE of 134.00 and a 52 week range of 10.00 - 18.85. IM is one of the biggest distributors of computer parts in the world.The company will benefit much once the computer industry picks up again (possible first quarter of the new year). With no PE, the stock is a bit too high for the current market and if the markets remain weak we could see something under $10. "Hold" here with best entry under to $11!
Novell, Inc. (NOVL) (Computer networks), $2.15 (off $0.23). On 9/17/2002, NEWS ALERT: Volera and N2H2 Offer Free Seminar to IT Professionals in K-12, Higher Education (more) On 9/18/2002, Novell is bringing down the high cost of owning Palm*, Windows* CE and Pocket PC* devices while ratcheting up security to keep the data that resides on them out of the wrong hands. Novell shipped Novell® ZENworks® for Handhelds 5, the latest addition to the ZENworks solution that automates key network management tasks to save customers money and boost productivity. ZENworks for Handhelds protects valuable data with centralized password and file management policies while reducing the total cost of owning handhelds, a cost that can approach five to 10 times the price paid for the devices themselves. (more) Novell has no PE and a 52 week range of 1.571 - 5.64. One of our favorite stocks for the long or short term. A year from now, if the markets end strong, we could see something closer to $8. NOVL has a book value over $3.50, and because of this I never felt the stock would fall under $2, but it did twice now, the last time was this past week for a day. The stock has to be a steal under $2. The question now is if it will fall back to under $1.60 again. A hard one to play, but a great one to own anywhere under $2 for this low risk, high return stock. Entry OK here, but best under $2!
Tarantella, Inc. (TTLA) (Software & programming), $0.31 (off $0.01). On 9/19/2002, Tarantella, Inc., a leading supplier of Internet infrastructure software, announced an agreement with Acclaim Technology and MG Solutions to provide integrated solutions for Sun ONE Portal Server customers, along with support and resources for the immediate deployment of enterprise portal environments. The companies will align sales and marketing efforts to offer the necessary hardware, software, services and support to engage new customers with an end-to-end portal solution offering immediate access to legacy applications. The announcement coincides with the SunNetwork 2002 conference scheduled to take place in San Francisco September 18-20. (more) TTLA has no PE and a 52 week range of 0.21 - $0.91. The future could brighten up with TTLA's strong product, but the company continues to lose a bunch on lower revenue. The chances are growing that TTLA will lose the Nasdaq symbol if it does not get over a dollar soon. Could be another reverse in order to keep the Nasdaq listing. Watch & Wait!
3Com® Corporation (COMS) (Computer networks), $4.32 (off $0.61). On 9/16/2002, The Benjamin School Tightens Campus Security With Converged 3Com Network (more) On 9/19/2002, 3Com Corporation reported financial results for its first quarter of fiscal year 2003 ended August 30, 2002. Revenues for the quarter were $305 million, down 10 percent from the prior fiscal quarter. Gross margins were $145 million, or 48 percent of revenues, up approximately four percentage points sequentially. Operating expenses were $172 million, a decrease of $15 million sequentially. The net loss was $32 million, or $0.09 per share, including restructuring charges of $23 million, or $0.06 cents per share. This compares to a net loss of $19 million, or $0.05 per share, in the previous quarter and a net loss of $223 million, or $0.65 per share, in the first quarter of the prior fiscal year. 3Com announced on July 22, 2002 that the company would discontinue the use of pro forma reporting. Beginning this fiscal quarter, operating results will be presented only on a U.S. GAAP (Generally Accepted Accounting Principles) basis. These results are not comparable to First Call earnings estimates, which were prepared on a pro forma basis. The company ended the quarter with $1.39 billion in cash and short-term investments, an increase of $5 million from the previous quarter, while reducing debt by $35 million. Strong working capital management continued, with a cash-to-cash cycle of eight days. Collection of accounts receivable (DSO) was 41 days, average days payables outstanding (DPO) was 64 days, and average inventory turnover was 11.6 turns. (more) On 9/20/2002, 3Com downgraded by Ladenburg Thalmann (more) On 9/20/2002, 3Com Ends Reseller Pact With Dell Over Competitive Concerns (more) 3Com has no PE and a 52 week range of 3.37 - 7.00. Nice company that is loaded with cash and is a leader in the communication device industry. The stock more than doubled since last September, showing how easy it is able to climb before backing off, but the backing was met with several attempts to climb, showing much underlying strength. It has been hard to bring this one down, but the lower earnings and revenue, combined with a selling market, made the under $4 arena a possibility."Entry OK here , but best if under $4!
Universal Compression Holdings, Inc. (UCO) (compression service), $16.37 (off $3.83). On 9/20/2002, Universal Compression Holdings, Inc. announced revised earnings guidance for its second fiscal quarter and full fiscal year. For the three months ending September 30, 2002, the Company is estimating earnings per diluted share of $0.23 to $0.25 and revenues of $157 million to $159 million. For the twelve months ending March 31, 2003, the Company is estimating earnings per diluted share of $1.15 to $1.25 and revenues of $640 million to $655 million. EBITDA, as adjusted (as defined below), is expected to be $46 million to $48 million for the second quarter and $200 million to $210 million for fiscal year 2003. (more) On 9/20/2002, Coverage initiated on Univ Compression by Deutsche Securities (more) On 9/20/2002, Univ Compression downgraded by Wachovia Sec (more) UCO has a PE of 11.88 and a 52 week range of 15.20 (recent) - 30.15. UCO is a nice growing company in a solid industry. The PE is low and the stock has fallen back on the above lowering of expectations. Book value is over $20. Entry here, or on anything under $17, should work just fine!
Zila, Inc. (ZILA) (Biotechnology & drugs), $1.46 (off $0.34) On 9/18/2002, Zila Rebuilding Advances With New Division Leaders -- John L. Maverick, VP & GM, Zila Pharmaceuticals, Ronald L. Fugate, VP & GM, Zila Nutraceuticals (more) On 9/20/2002, Zila Nutraceuticals (Inter-Cal Nutraceuticals), a division of Zila, Inc. announced that Sea & Ski, a market leader in sun care products, launched a new core product line containing Ester-C® Topical Concentrate, an innovative form of natural vitamin C designed to last in emulsions and penetrate skin layers without chemicals. The new Sea & Ski Platinum Sunscreen and Skin Care formula was developed for the needs of maturing skin and comes in both SPF 30 and SPF 50 protection. (more) Zila has no PE and a 52 week range of 0.6901 - 2.74. Nice company with a great future if ZILA ever manages to get FDA approval on its cancer diagnostic product, the stock will climb fast. After falling under the 70 cent level recently, the stock made a big move higher on positive news above but ran into trouble around $1.80. Zila is a trading stock and money can be made on this stock if in under $1. "Hold" here with best under $1!
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The Spotlight's Stocks to Watch for the current market are: AMD, AIRM, BORL, CSCO, COMS, DELL, EXNT, FONR, INTC, INLD, NOVL, QCOM, SHRP, SYMC, TSTF, TTEK, UCO, VEDO and ZILA. We feel this group is worth a "closer look" and all hold promise for a strong future. Visit our "Stocks To Watch" section for our brief opinion on the above listed companies.
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