15:18 ET Unusual Volume
Redback Networks (RBAK 1.05 +0.30, +41.5%),10x avg volume, Corvis (CORV 1.39 +0.20, +17.5%), 6x avg volume, Avanex (AVNX 3.87 +0.91, +30%), 5x avg... McLeodUSA (MCLD 1.19 +0.17, +16%), 5x avg... COLT Telecom (COLT 4.38 +0.59, +15%), 5x avg, Westell (WSTL 7.90 +0.68, +9%), 4x avg, Oplink (OPLK 1.42 +0.17, +13%), 3.5x avg.
In Play®
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Updated: 29-May-03 15:18 ET Comprehensive coverage on Short Stories, analysis on Story Stocks
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15:18 ET Unusual Volume
Redback Networks (RBAK 1.05 +0.30, +41.5%),10x avg volume, Corvis (CORV 1.39 +0.20, +17.5%), 6x avg volume, Avanex (AVNX 3.87 +0.91, +30%), 5x avg... McLeodUSA (MCLD 1.19 +0.17, +16%), 5x avg... COLT Telecom (COLT 4.38 +0.59, +15%), 5x avg, Westell (WSTL 7.90 +0.68, +9%), 4x avg, Oplink (OPLK 1.42 +0.17, +13%), 3.5x avg.
15:03 ET Dow vacillating near session lows -- Technical --
The large cap blue chip index has under performed today but the slide has been relatively limited. Weighing on the index are: UTX -2.6%, EK -2.6%, CAT -2.2%. INTC +4.5% is the top performer which has helped underpin the semi sector (SOX +3.2%) and thus far kept the Nasdaq Comp in the black. Failure to build on the afternoon recovery attempt exposes next supports for the Dow at 8710 and 8695/8692.
14:59 ET Semis +3.7% continue to show strength: NSM +5.8%, INTC +5.1%, KLAC +5%, PMCS +3.8%
14:55 ET LU Lucent convert upped to $1.5 bln from $1.3 bln (2.27 -0.01)
14:54 ET NVLS Novellus: No major surprises expected out of mid-qtr update (32.42 +1.35)
Moors & Cabot is out with a preview of this evening's mid-qtr update. Firm looks for NVLS to reiterate its current forecast of $238 mln in revenue, $0.05 in EPS and $188 mln in orders. Suspects that gross margins guidance could be slightly revised downward but believes expense management will offset any margin weakness on the bottom line. Firm is not expecting any upside nor does it believe that co will provide any guidance for the SeptQ. Although stock has rallied in the past week, firm does not see any positive fundamental catalyst that will lead it to get more favorable on the stock at current valuations. Maintains Sector Perform rating.
14:38 ET PDYN Paradyne -- Volume Breakout (2.31 +0.45)
Shares of Paradyne Networks (+24.2%) broke out to an 8-month high today on 7x avg daily volume; the co, which makes DSL and other broadband network access products, is seeing some buy interest in the midst of a general network equipment rally, the run-up to the Supercomm trade show (June 3-5), and a new broadband deal announcement with SkyStream Networks. In its most recent qtr, the co reported a loss of $0.09 on $19.3 mln in sales, and analysts expect the co to turn a profit in Q1 2004. Mkt cap: $98 mln, float 25.9 mln shares, avg daily volume: 154k shares.
14:17 ET THC follow-up (16.76 -0.08)
Merrill Lynch attributes volatility to internet news service report of "unconfirmed chatter of another FBI raid circulating." Merrill has checked with the company, and THC is not aware of any such development.
14:15 ET CMVT Comverse Tech -- Daily Breakout (15.08 +0.40)
Shares of Comverse Technology are posting a 2.8% gain today. The $2.8 bln market-cap company makes computer and telecommunications systems and software for multimedia communications and information processing applications. The shares have broken to a new 52-week high today. CMVT is projected to generate revs of $755 mln this yr (p/s 3.7) and revs projected next yr at $819 mln (p/s 3.4). Sector avg p/s is currently in the ballpark of 4.4x. Its recent three-day break has occurred on stronger than average daily volume.
13:54 ET SYMC Symantec defended by Prudential (44.47 -2.94) -- Update --
While Prudential indicates that recent NPD trend suggests there is some risk to firm's forecast of a 5% sequential decline for the JunQ, firm sees several possible offsets including mgmt reiteration of guidance, strong non-retail sales trends and positive currency effect. According to firm, SYMC mgmt reiterated Q1 and full yr guidance at a competitor conference today. Given mgmt has near real-time data, while the NPD lags 2-3 wks, firm views these comments positively. Reits Buy rating and $51 target.
13:53 ET S&P 500 pulls back -- Technical --
Earlier highlighted the inability of the S&P to take out resistance at 962.70 with today's pull back accelerating after the breach of the intraday supports mentioned. Thus far the index has held at May 16 high and a bounce is possible but need to see sustained action back above resistances at 953 and 955/956 to improve the very near term bias. If follow through selling develops, retracement supports of the recent winning streak are at 942.96 (38%) and 937.06 (50%).
13:45 ET ALTH Allos Therapeutics announces restructuring plan (3.61 +1.30) -- Update --
Co announces that its revised operating plan is intended to enable the co to complete the rolling submission of its NDA to the FDA for RSR13 in patients with brain metastases from breast cancer (7:43), and maintain the current timeline for the development of PDX. As part of the revised operating plan, the co is implementing expense reduction measures, including a reduction in workforce by about 30%, and said there will be a one-time charge associated with this restructuring. Co expects to reduce its cash burn to between $6-$7 mln per qtr and expects its 2003 loss from operations to be in the low-$30 mln range (including restructuring charges and non-cash compensation).
13:38 ET Market Action
Hearing that a major S&P futures seller came into the market after NDX failed to clear 1200 level.
13:35 ET Semis +2% holding in positive ground led by INTC +4%, NSM +4.3%, KLAC +3%, PMCS +2.6%
13:33 ET Biotech -2.3%, Utilities -2.3% and Oil Service -1.6% lead downside action
13:31 ET Gold/Silver Index rotates higher as market loses steam; 10-yr note, +20/32, finding a bid
13:27 ET DHI DR Horton raises FY03 guidance (26.33 +0.17)
Co raises FY03 guidance to $3.85-$3.90 from $3.60-$3.65, citing continued strong sales and a sales contract backlog that continues at a record level for the homebuilding industry.
13:23 ET Foreign telecom stocks show relative strength
As noted in our 6:41 comment, Russian cellular stocks (VIP, MBT, GLDN) have shown notable relative strength in recent months; however, this rally does not seem to be confined to Russia, as emerging mkt cellular/telecom stocks as a group have outperformed as well, with many breaking out to new highs today. While the following is by no means an exhaustive list, stocks such as these may be worth examining if optimism persists for an emerging mkts economic rebound: America Movil (AMX), Brasil Telecom (BRP), China Telecom (CHA), City Telecom (CTEL), Colt Telecom (COLT), Compania de Telecom de Chile (CTC), Embratel (EMT), KT Corp (KTC), Magyar Tavkozles (MTA), Millicom Int'l (MICC), NII Holdings (NIHD), Philippine Long Distance (PHI), PT Telekomunikasi Indonesia (TLK), Tele Celular Sul (TSU), Tele Centro Oeste (TRO), Tele Leste Celular (TBE), Tele Nordeste Cellular (TND), Tele Norte Leste (TNE), Telecom Argentina (TEO), Telefonica (TEF), Telefonos de Mexico (TMX), Telemig Celular (TMB), Telesp Celular (TCP), and Telstra (TLS).
14:38 ET PDYN Paradyne -- Volume Breakout (2.31 +0.45)
Shares of Paradyne Networks (+24.2%) broke out to an 8-month high today on 7x avg daily volume; the co, which makes DSL and other broadband network access products, is seeing some buy interest in the midst of a general network equipment rally, the run-up to the Supercomm trade show (June 3-5), and a new broadband deal announcement with SkyStream Networks. In its most recent qtr, the co reported a loss of $0.09 on $19.3 mln in sales, and analysts expect the co to turn a profit in Q1 2004. Mkt cap: $98 mln, float 25.9 mln shares, avg daily volume: 154k shares.
12:40 ET PMCS PMC-Sierra shares appear to be under accumulation (11.08 +0.43)
Appears that PMCS is showing up on institutional radar screens again. Has been a relative laggard thus far, in comparison to its past performance in market rallies, but stock has shown strong volume the past several sessions. Other names demonstrating relative strength today include CSCO, NVDA and NTAP.
12:33 ET BKHM Bookham Tech trades up 14% on 4x avg volume as optical stocks rediscovered (1.47 +0.18)
Other sector movers of note today include CORV +14%, AVNX +11.5%, FNSR +12%, OCPI +12% and JDSU +10.5%.
10:48 ET PXLW Short-Squeeze Alert -- Pixelworks (7.74 +0.38)
Stock putting together a solid run in early action. Stock has cleared resistance in the $7.60 and is poised to take out next level of interest in the $7.60 area. Short-interest in this stock represents approx. 20% of the float. |
