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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Joe Lyddon who wrote (7401)	5/21/1999 7:12:00 PM
From: kendall harmon	Respond to of 57584

ACAI--Merrill Lynch says "overreaction." Looking for a Monday bounce. The bt alex brown analyst cut her numbers for 1999 from 1.98 to 1.70, a 14% chop, yet the stock was down around 31%. Atlantic Coast Shares Decline on Profit Concern (Update2) (Closes shares.) Dulles, Virginia, May 21 (Bloomberg) -- Atlantic Coast Airlines Holdings Inc. shares fell 31 percent on concern that the carrier's average air fares have weakened due to less revenue from business travelers and more competition. Atlantic Coast shares sank 7 1/8 to 15 7/8 after analysts lowered their earnings estimates for the carrier, which operates as United Express out Washington's Dulles airport. The stock earlier touched 15 3/4. A company warning to analysts about the earnings came as competition in Atlantic Coast's home market on the East Coast is heating up mainly because of expansion by partner UAL Corp.'s United Airlines and US Airways Group Inc. ''The lower yields reflect the fact there are a lot of seats being added into the Washington-Dulles market,'' said Merrill Lynch & Co. analyst Michael Linenberg, who lowered his earnings estimates for Atlantic Coast. As competition among the carriers rises, fares tend to fall. A drop in profit from corporate customers, who generally buy the most expensive, last-minute fares, has pushed down Atlantic Coast's average fare too, analysts said. Business customers have a larger effect on regional airlines, such as Atlantic Coast, because they ferry corporate customers to smaller and mid-sized towns. Dulles, Virginia-based Atlantic Coast flies in the Eastern and Midwestern U.S. as a commuter carrier for United. The carrier's difficulty in switching to a new computerized system that helps set fares also contributed to BT Alex. Brown Inc. analyst Susan Donofrio's downgrading of the airline to a ''buy'' rating from a ''strong buy,'' she said in a report. While Donofrio said the carrier's outlook remains ''very much intact'' because of its growing use of small jets and increased service at Washington's Dulles airport, she reduced Atlantic Coast's earnings estimates. She estimates that Atlantic Coast will have per-share earnings of 51 cents in the second quarter, down from a previous forecast of 65 cents, and $1.70 for the year instead of $1.98, according to Donofrio's report. While Merrill's Linenberg lowered his per-share estimates to 51 cents from 60 cents for the second quarter and to $1.65 from $1.75 for the year, he said the stock decline was an overreaction by investors. Atlantic Coast had profit of $10.5 million, or 49 cents a share, in the second quarter last year and $31.8 million, or $1.49, for the year.

To: Joe Lyddon who wrote (7401)	5/21/1999 10:26:00 PM
From: Rande Is	Read Replies (1) \| Respond to of 57584

. . . . . . .Some thoughts on Play Co Toys. . . . . . . . Joe and everyone. . . . PlayCo has a history of demonstrating their care about NOT coming across as a hype company with all fluff and no substance. They have shown this by releasing news and other important info along with their quarterly reports. Short-sellers hunt for fluffy PR, because of what it reveals or implies about the management. I would like to see news come out too, but I would far prefer that the news was full of meat that could instantly be translated into an increase in shareholder value. I would also love a reiteration of the preferred conversion rate. There are some things that could be done without coming across as being trivial. . But I believe the management has become gunshy MOSTLY due to the number of internet traders that coorespond with them. They are probably afraid of "these people" being daytraders that just want to scalp some quick gains from the stock price. . . . This is NOT an uncommon ocurrance. . . some companies have been hurt by internet traders calling their clients every 15 minutes to make certain that they have a deal. To say the "we won't spike and profit your price, we're position traders" is like saying my dog won't bite, he hasn't bitten anyone in a long time." So I really haven't got a clue anymore about when PLCO will or won't release news or what that news might contain. We know that they have their big E-commerce site, with a probable big-time portal deal. . .not just a link, but a deal. . .and we know they have new stores to announce, but they don't always announce their new stores. . . and of course we know they will release earnings and same store sales reports that have been very impressive of late. Otherwise. . . Patience will reward you . . . greed will destroy you. Rande Is