If you're kicking yourself for not living in the greater Washington, D.C. area and not having established a career in journalism -- thereby not having been able to be at the National Press Club on Wednesday to hear David and Tom's address -- rejoice! According to C-Span, it should be rebroadcast this Saturday evening at 6pm ET. Also of interest is our special Weekend magazine, Fool's Gold, featuring a Sector Snapshot on Internet equipment, the Weekend Research Center, and a primer on Valuation Principles and Practice.
MF Merlin's Economic News today covers the Commerce Department's report on durable goods orders for April. You'll find the Economic News, as well as all our Special Sections, FoolWires, and earnings reports, on either the Evening News or Stock Research screens. Enjoy!
Lear Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LEA)") else Response.Write("(NYSE: LEA)") end if %> began a cash-tender offer for shares of Masland Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MSLD)") else Response.Write("(NASDAQ: MSLD)") end if %>, rising $2 1/2 to $37 5/8 on news that it would acquire the North American automotive floor system manufacturer. Lear, the world's largest independent supplier of automotive interior systems, bolsters its position to provide one-stop shopping for its customers with this strategic acquisition. Masland also provides acoustical products and luggage compartment trim. With the price set at $26 a share in cash, the total price is $384 million. Masland was up $1 1/4 to $25 3/4 for its part.
News that Microsoft <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MSFT)") else Response.Write("(NASDAQ: MSFT)") end if %> would attend SystemSoft's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: SYSF)") else Response.Write("(NASDAQ: SYSF)") end if %> June launch of its Systems Wizard product added to its estimate-beating performance yesterday and fueled the company's $15 to $53 1/4 gain. Many were worried that Microsoft would develop a competing product to Systems Wizard, which supposedly makes it easier to hook up peripherals to Windows95 systems. The fact that they beat their numbers by a penny yesterday and that it appears Microsoft will not wipe them out made investors a lot more optimistic.
Rumors that Nordic cellular phone manufacturer Nokia <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NOK/A)") else Response.Write("(NYSE: NOK/A)") end if %> might be a takeover target for Canadian-based Northern Telecom <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NT)") else Response.Write("(NYSE: NT)") end if %> boosted those shares $1 3/8 to $40 3/4 today. This all came in spite of the fact that Northern Telecom issued a statement that although it does not comment on rumors, it did want to emphasize that the acquisition of Nokia "would not be consistent with the company's current strategy." Nokia was not available for comment, but has seen positive momentum in the past few days after a high-profile upgrade from a brokerage firm earlier in the week.
QUICK TAKES: CHART INDUSTRIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CTI)") else Response.Write("(NYSE: CTI)") end if %> benefited $1 1/2 to $14 3/8 from appearing on Investor's Business Daily's New America page today. . . Merrill Lynch hiked MITCHELL ENERGY NYSE: MND/B) to "long-term buy" from "long-term accumulate", lifting the shares by $1 1/4 to $18. . . BOYD GAMING <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BYD)") else Response.Write("(NYSE: BYD)") end if %> popped up $1 1/8 to $15 3/8 when Bear Stearns boosted the shares to "attractive" from "neutral". . . COPYTELE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: COPY)") else Response.Write("(NASDAQ: COPY)") end if %> rose $2 5/8 to $18 after it declared a two-for-one split. . . COIN BILL VALIDATION <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: CBVI)") else Response.Write("(NASDAQ: CBVI)") end if %> was up $1 1/2 to $9 1/4 today after the company appointed a new chief executive officer (CEO) and vice-chairman.
LSI Logic <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LSI)") else Response.Write("(NYSE: LSI)") end if %> got whacked for $2 to $30 today after Robertson Stephens cut its 1996 estimates on the company 15 cents to $1.50 EPS. Although Robbie Stephens maintained its initial "buy" rating, analyst Dan Niles called the inventory correction "more severe" than originally expected. An inventory correction occurs when customers of a particular company work up a large enough inventory of components or products that they do not need to order many new ones for a while. LSI Logic's customers apparently fattened inventories when semiconductor supply was tight and now are working off their extreme levels.
A extremely negative "strong sell" from Asensio & Company as well as comments by the company's chief financial officer (CFO) about a takeover not being in the works was enough to cut SyQuest <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: SYQT)") else Response.Write("(NASDAQ: SYQT)") end if %> down $7 to $10 7/8 today. Asensio described the company's negative working capital, poor financial condition, questionable management and lack of perceived brand value as the reasons for its extreme position on SyQuest. Perhaps all of the people who sent dunning e-mails to MF Templar for his Monday column on SyQuest pointing out the same thing can recycle their letters and mail them out to Asensio as well -- although they might have to strike out those sentences about the SyQuest article being a "transparent" attempt to boost shares of Iomega <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: IOMG)") else Response.Write("(NASDAQ: IOMG)") end if %> as the firm has no position in the stock and *still* dislikes SyQuest.
Speaking of storage technology, Interpoint <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: INTP)") else Response.Write("(NASDAQ: INTP)") end if %> lost $4 1/2 to $29 this afternoon after being up for much of the day based on bullish estimates for its tape drive business. The company reported earnings two days ago that were much higher than expected, based on the performance of this unit. The analyst covering the company boosted his estimates for tape drive growth to 75% from 50% and the rest, as they say, is history. Even after the sell-off, Interpoint is still doing quite well on the week.
The U.S. Government was behind Healthcare Services's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: HCSG)") else Response.Write("(NASDAQ: HCSG)") end if %> $1 1/2 to $7 3/4 drop today. No, it is not some kind of ugly intelligence conspiracy involving stolen microchips or rubber face-masks. Rather, it is a lawsuit that alleges $400,000 in kick-backs from two New Jersey nursing homes in return for keeping their contract with the health maintenance organization (HMO). Civil false claims and money laundering charges have been filed against 12 individuals.
QUICK CUTS: CHINA YUCHAI INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CYD)") else Response.Write("(NYSE: CYD)") end if %> dropped $1 3/8 to $7 7/8 after the company forecast that fiscal 1996 sales would be down "significantly". . . REPUBLIC ENVIRONMENT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: RESI)") else Response.Write("(NASDAQ: RESI)") end if %> got mashed for $4 to $15 3/4 after tripling in the prior three days ... UNICOMP <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: UCMP)") else Response.Write("(NASDAQ: UCMP)") end if %> got mashed for $1 3/8 to $6 1/2 after reporting earnings of $0.06 EPS versus $0.09 EPS last year. . . DIAMOND MULTIMEDIA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: DIMD)") else Response.Write("(NASDAQ: DIMD)") end if %> slipped $1 3/4 to $16 1/4 after Alex. Brown cut the stock from "strong buy" to "neutral" ... GILEAD SCIENCES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: GILD)") else Response.Write("(NASDAQ: GILD)") end if %> had $3 5/8 lopped off its share price, falling to $33 7/8 after chief executive officer (CEO) Michael Bigham resigned to become CEO of another firm.
Fool HQ Takes Stock In Iomega
Believe it or not, very few people at Fool Global HQ have actually owned shares of Iomega <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: IOMG)") else Response.Write("(NASDAQ: IOMG)") end if %> during its torrid rise. Certainly we have suffered scores of skeptics who peel back every positive comment in search of some hidden agenda to help support Iomega shares, but given the actual lack of ownership in the maker of removable storage devices concentrated at Fool Global HQ, this is actually rather ironic.
The combination of a hectic schedule, some rather under-capitalized Fools and fairly rigorous rules on when one can buy and sell Fool Portfolio stocks is the explanation for why more than 50% of the denizens of Fool Global HQ have never owned a share of Iomega. Of course, this all changed late last week when a generous visitor to Fool HQ gifted 50 shares to the Iomega-less.
HandsomeEd, well-known in Iomega circles, donated 25 shares pre-split to the Iomega-less fund after a visit to Fool Global HQ in Alexandria, Virginia. A gesture of appreciation for a stock he apparently has made a mint off of, this was very well received by the eight people who currently don't own any Iomega -- including such luminaries as yours truly and Fool Tom Gardner, who apparently never got around to buying the stock for himself.
Recently, accusations that negative comments about SyQuest were rooted in a desire to "prop up" Iomega's share price and had absolutely nothing to do with the pitiful business state of this removable storage concern have caused quite a bit of amusement in these hallowed Foolish Halls. Foolishness centers on a quest for the truth and the trust of our readership that is our bond. Although we may not always get every story exactly right, the goal remains discerning the truth and presenting careful, reflective and Foolish analysis.
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