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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Margaret Mateer who wrote (33334)	4/13/1999 3:26:00 PM
From: debra vogt	Respond to of 120523

I will go look at TheStreet.com, I have a subscription. Be right back!

To: Margaret Mateer who wrote (33334)	4/13/1999 3:32:00 PM
From: debra vogt	Read Replies (1) \| Respond to of 120523

Here's what I found at TheStreet.com. From the column Options Buzz by Erin Arvedlund posted at 2:48 PM. Refers to comments made by Jeff Kessler analyst with Lehman" The Internet ionosphere combined with Lehman's remarks also helped juice options in Sovereign Bancorp (SVRN:Nasdaq), a mid-Atlantic regional bank. Sovereign management spent Monday in Boston on a Lehman-sponsored marketing trip and has scheduled a meeting with sell-side analysts to discuss its "strategic direction," Kessler wrote. "Rumors are flying that the company may be gathering analysts together to more fully describe the direction of its Internet strategy." These factors are pushing the action in Sovereign's call options. Its July 17 1/2 calls gained 3/8 (or $37.50 per contract) to 2 1/8 ($212.50) on volume of 526 contracts, compared with open interest of 248. The stock crept up 1/4 to 16 1/8. Not too shabby for a small regional bank based in Wyomissing, Pa., with 300 retail commercial banking offices in eastern Pennsylvania, New Jersey and northern Delaware. Regional banks have taken on a certain luster with investors because of the ongoing consolidation within the sector. That typically is enough to get speculators going. This time, the Net business rumors added some momentum as well. Kessler said: "If management does articulate a well-thought-out Internet strategy tomorrow, all these initiatives combine to make Sovereign a more valuable acquisition target" with potential for earnings growth in the mid-teens. "The Internet speculation run-up misses the real story here," Kessler went on to say in his note. "On the deposit and fee income side, Sovereign continues to make itself more valuable to its banking customers." Kessler was on a conference call and wasn't immediately available to comment on his Cendant/Sovereign research note, put out on First Call Tuesday morning.