HEROES
Energy services stocks continue to do well as oil holds above $20 per barrel
and the hot weather continues. On announcing the completion of its acquisition
of oilfield chemicals firm Petrolite, BAKER HUGHES INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BHI)") else Response.Write("(NYSE: BHI)") end if %>
gained $1 13/16 to $41 13/16; oil services massif SCHLUMBERGER
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLB)") else Response.Write("(NYSE: SLB)") end if %> climbed $3 3/4 to $136 3/4; CAL DIVE INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CDIS)") else Response.Write("(Nasdaq: CDIS)") end if %> sailed $1 1/2 upward to $21 1/2; and HALLIBURTON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HAL)") else Response.Write("(NYSE: HAL)") end if %>
gained $3 to $84. Oil driller and services company ENSCO INTERNATIONAL
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ESV)") else Response.Write("(NYSE: ESV)") end if %> was jacked up $5 15/16 to $59 3/4. BJ SERVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BJS)") else Response.Write("(NYSE: BJS)") end if %> rose $2 11/16 to $57 11/16 on an upgrade to "outperform" from "neutral"
courtesy of Morgan Stanley, and STOLT COMEX SEAWAY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SCSWF)") else Response.Write("(Nasdaq: SCSWF)") end if %>
finished the day $4 higher at $33 3/8 following yesterday's impressive earnings
report.
3COM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COMS)") else Response.Write("(Nasdaq: COMS)") end if %> rose $3 11/16 to $48 1/8 after the network equipment
company was upgraded to "buy" from "hold" by Salomon Brothers. ASCEND
COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %> moved up $5 5/16 to $49 1/16 on an
"intermediate term" rating boost to "accumulate" from "neutral" from Merrill
Lynch, which comes as the company finishes what some investors believe was
the company's best-ever quarter.
IPO underwriters were busy shepherding some of their flock into the public
equity markets today. Year 2000 remediation
software company PERITUS SOFTWARE
SERVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PTUS)") else Response.Write("(Nasdaq: PTUS)") end if %> finished up $10 3/4 from its initial public offering
(of 3.5 million shares) price of $16. Headhunting firm LAMALIE ASSOCIATES
<% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LAIX)") else Response.Write("(Nasdaq: LAIX)") end if %> gained $3 7/8 from its IPO price of $12. Long-term healthcare
provider CENTENNIAL HEALTHCARE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CTEN)") else Response.Write("(Nasdaq: CTEN)") end if %> also debuted today,
rising $3 from its IPO price of $16 per share. With 1996 revenues of $233
million, this was the most mature of the companies coming public today. The
company has 11.5 million shares outstanding after the offering, though that
doesn't necessarily reflect the fully diluted sharecount, which is the sharecount
used by the Fool and prudent investors to arrive at a market cap calculation
for any company.
QUICK TAKES: May 29 Daily Trouble stock SAFETY 1ST <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SAFT)") else Response.Write("(Nasdaq: SAFT)") end if %> rose $1 1/4 to $7 1/4 as investors believe the child safety products company may be turning things around... Digital signal processor company DSP COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DSPC)") else Response.Write("(Nasdaq: DSPC)") end if %> popped up $1 11/16 to $12 after announcing that customers have accepted the company's chip designed for the Japanese Personal Digital Cellular standard... ANALYTICAL SURVEYS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ANLT)") else Response.Write("(Nasdaq: ANLT)") end if %> gained $2 to $15 3/4 after the computerized mapping company announced the acquisition of MSE Corp. for total consideration of $18 million in cash and stock... Surge suppressor and power supply maker SL INDUSTRIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SL)") else Response.Write("(NYSE: SL)") end if %> added $1 1/16 to $10 7/8 after announcing a stock buyback of up to $1 million shares... After yesterday announcing that it has received $1.4 billion in bank loan commitments to complete its merger with MESA INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MXP)") else Response.Write("(NYSE: MXP)") end if %>, PARKER & PARSLEY PETROLEUM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PDP)") else Response.Write("(NYSE: PDP)") end if %> picked up $2 7/8 to $39 1/2... Oil producer LOMAK PETROLEUM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LOM)") else Response.Write("(NYSE: LOM)") end if %> picked up $1 5/16 to $19 1/8 as a happy convergence of higher oil prices and a mention by Carlene Murphy Ziegler of Artisan Partners in this weekend's Barron's Roundtable goosed the stock... FREQUENCY ELECTRONICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: FEI)") else Response.Write("(AMEX: FEI)") end if %> moved up $1 1/8 to $15 3/8 after yesterday announcing a $20 million contract with a satellite manufacturer.MCAFEE ASSOCIATES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MCAF)") else Response.Write("(Nasdaq: MCAF)") end if %> was boosted $5 1/8 to $66 3/4 after Merrill Lynch named the anti-virus and network management software company one of its "Focus One" stocks of the week.
GOATS
BELL MICROPRODUCTS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BELM)") else Response.Write("(Nasdaq: BELM)") end if %> retreated $1 5/8 to $9 1/4 after
the PC products distributor and contract manufacturer said Q2 revenues will
decline approximately 19% sequentially and that EPS will miss estimates of
$0.29 by about a dime per share. Revenues of approximately $113 million will
also be flat from Q2 1996, and EPS of $0.18 to $0.19 will be down approximately
15% year-over-year.
Ceramic tile producer DAL-TILE INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DTL)") else Response.Write("(NYSE: DTL)") end if %> was smashed
for a $1 3/8 loss to $16 13/16 after announcing that it expects to take a
second quarter charge of $16 million for uncollectible receivables and
overstocked inventories. Outside of those charges, the company forecast Q2
EPS of $0.11 to $0.13, below EPS estimates of $0.20. Last quarter, the company
had a rough time when it reported flat sequential revenue growth because
of an information systems glitch at its recently acquired American Olean
Tile unit. Dal-Tile is one of the largest producers of tile in the world,
according to Hoover's, so it's too bad that the company has had a
tough time converting that position into shareholder return for its investors.
The cynically bent might wonder if these are legitimate explanations or excuses
made by inferior management.
We're having a clearance sale on earnings pre-announcements! We're crazy, we're pricing these so low. Take a look at LARSCOM INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LARS)") else Response.Write("(Nasdaq: LARS)") end if %>, which lost $3 1/8 to $8 after pre-announcing Q2 EPS of $0.13 to $0.14, below expectations. Also falling apart was electronics design software company IKOS SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IKOS)") else Response.Write("(Nasdaq: IKOS)") end if %>, which lost $5 1/4 to $15 after pre-announcing Q3 EPS of $0.22 (before charges), below the mean estimate of $0.29, due to revenues coming in below planned levels. Semiconductor test equipment company INTEGRATED MEASUREMENT SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IMSC)") else Response.Write("(Nasdaq: IMSC)") end if %> slid $4 1/4 to $11 3/4 after announcing that it expects sales to be "25% below analysts' consensus estimates of $14.5 million. As a result, earnings per share will be approximately 45% below analysts' consensus estimates of $0.26 for the second quarter."
QUICK CUTS: Jewelry retailer FRIEDMAN'S <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FRDM)") else Response.Write("(Nasdaq: FRDM)") end if %> was hammered $6 11/16 lower to $16 1/16 after announcing a 4.7% decline in third quarter sales, which will lead to the company's missing by at least $0.12 the analysts' mean estimate of $0.26 per share. The company blamed a decrease in credit sales... CONCENTRA CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CTRA)") else Response.Write("(Nasdaq: CTRA)") end if %> was squashed for $1 3/8 to $5 1/2 on announcing that it expects a disappointing 22% decline in first quarter sales. The company added that the pushout of a couple of large contracts will cause a "significant" loss for the quarter... Imaging software and hardware company CORNERSTONE IMAGING <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CRNR)") else Response.Write("(Nasdaq: CRNR)") end if %> lost $1 1/4 to $6 3/8 on pre-announcing a break-even Q2 resulting from lower-than-expected sales... Semiconductor test equipment company ADE CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADEX)") else Response.Write("(Nasdaq: ADEX)") end if %> lost $3 5/8 to $25 5/8 after announcing its intention to offer up to 2.5 million common shares for sale... Notions retailer CONCEPTS DIRECT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CDIR)") else Response.Write("(Nasdaq: CDIR)") end if %> lost $1 7/8 to $16 3/16 after filing to sell 1.5 million shares.
FOOL ON THE
HILL
An Investment Opinion by Randy
Befumo
CompUSA Fighting Way Back
Computer superstore COMPUSA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPU)") else Response.Write("(NYSE: CPU)") end if %> added $2 11/16 today to close
at $23 15/16, setting a seven-month high. The company announced sales for
the fourth quarter and the full fiscal year this morning in a press release,
saying that total sales had increased 22% for the full year while same-store
sales edged up 5.9%. The data for the fourth quarter was particularly promising,
demonstrating improvement in same-store sales to 9.7% for the fourth quarter
compared with only 1.5% two quarters ago. Total sales for the quarter increased
23% to $1.15 billion, slightly higher than analyst forecasts given the Street's
ebullient reaction.
Although investors are once again jubilant about prospects for the company,
the situation was very different not all that long ago. The once ultra-hot
retailer began to lose heat last October when a number of office superstores
and electronics superstores that sell computers began to report disappointing
same-store sales growth. In spite of the fact that CompUSA itself continued
to do fine at the time, the broad weakness among electronics retailers led
many to prematurely conclude that sales of computers through the retail channel
would be weak during Christmas. When CompUSA reported
same-store
sales of only 1.5% in its fiscal second quarter, the shares were clocked
for $4 3/8 to $16 3/8, going as low as $13 1/4
in the ensuing few days.
CompUSA has come back fighting and it has been doing quite a bit more than
just beefing up sales at stores in operation for more than a year. The company
has been a leader in using its retail space to conduct low-key, high-margin
classes on using computers or surfing the Web. Closing its acquisition of
PCs Compleat, Inc. has allowed the company to ramp up its "CompUSA Direct"
mail-order business to try to find a synergy between the direct channel that
Dell Computer has had so much success with and the indirect (retail) channel
that CompUSA has championed. By focusing on higher margin, complementary
businesses and evolving business models that allow the company to deploy
assets more efficiently, CompUSA is clearly trying to become a creator of
value for shareholders.
Same-store sales aside, the company has not substantially changed over the
last six months in spite of the fact that the market's perception of it has.
CompUSA has maintained strong growth in total sales, and coming into a product
transition to Pentium MMX and Pentium II microprocessor technology, the company
is poised to continue this trend. Should CompUSA generate 2.0% net profit
margins, it will earn somewhere in the neighborhood of $0.24 per share assuming
94.6 million shares, compared to expectations of only $0.20 per share. This
quarter's results should prove especially interesting, because if the $1.17
EPS estimates for next year are too low, the company's stock might be more
attractive than it currently appears at 20 times forward estimates. If a
case can be made that analysts' expectations for both sales and margins are
too low, CompUSA may be able to continue the 211.7% annual gains it has averaged
over the last three years.
CONFERENCE CALLS
PAYCHEX INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PAYX)") else Response.Write("(Nasdaq: PAYX)") end if %>
(402) 220-5186
Replay available through 7/4
FINISH LINE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FINL)") else Response.Write("(Nasdaq: FINL)") end if %>
(800) 839-0814
Replay available through 7/2
PAMECO CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PCN)") else Response.Write("(NYSE: PCN)") end if %>
(402) 220-1008 -- replay available through 7/2 @ 5:00 p.m. EDT
GENZYME CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GENZ)") else Response.Write("(Nasdaq: GENZ)") end if %>
(Re: Genzyme Tissue Repair shares and Carticel performa
(402) 220-6028 -- replay available through 7/8 @ 5:00 p.m. EDT
VISUAL EDGE SYSTEMS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: EDGE)") else Response.Write("(Nasdaq: EDGE)") end if %>
(800) 247-9979 -- replay for 24 hours
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Randy Befumo (TMF Templr), a Fool
Fool Plate Special
Dale Wettlaufer (TMF Ralegh), another
Fool
Ups & Downs
Brian Bauer (TMF Hoops), and yet
another Fool
Editing