<% ' AvantGo:MarketClose %>DJIA 8975.46 +59.99 (+0.67%) S&P 500 1141.01 +7.33 (+0.65%) Nasdaq 1856.56 +19.46 (+1.06%) Value Line ndx 897.77 +5.11 (+0.57%) 30-Year Bond 98 -1 9/32 5.38% Yield<% ' AvantGo:End %>
<% ' AvantGo:Heroes %>Bookseller Barnes & Noble <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BKS)") else Response.Write("(NYSE: BKS)") end if %> had a good day today after agreeing to buy book and magazine wholesaler Ingram Book Group from privately held Ingram Industries for $600 million in cash and stock. While the Street cheered the deal by driving up Barnes & Noble's shares $3 3/8 to $34 1/4, online competitor Amazon.com <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMZN)") else Response.Write("(Nasdaq: AMZN)") end if %> was less impressed. In a statement, Amazon predicted the acquisition would raise "industry-wide concerns" about consolidation. Apparently, the deal also raised some concern about Amazon, which fell $3 15/16 to $124 9/16. In its latest 10-K, Amazon said it purchases a "substantial majority" of its books from Ingram and fellow wholesaler Baker & Taylor, with Ingram accounting for 58% of Amazon's inventory purchases in fiscal 1997. "Worry not," Amazon CEO Jeff Bezos assured his customers. "Goliath is always in range of a good slingshot."
Managed care provider Foundation Health Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FHS)") else Response.Write("(NYSE: FHS)") end if %> gained $2 5/16 to $14 3/4 thanks to a Goldman Sachs upgrade to "trading buy" from "market perform" and positive sentiment regarding the firm's ongoing cost-cutting initiatives. Yesterday, Superior National Insurance Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SNTL)") else Response.Write("(Nasdaq: SNTL)") end if %> said it has secured financing to buy Foundation's workers' compensation unit for $285 million, which will allow Foundation to focus more closely on its core managed care business. Foundation also said it would continue the "focusing" theme by selling off its unprofitable health plan businesses in Louisiana, Texas, and Oklahoma. And earlier this week, the company announced that its Q3 earnings report will include $175 million in pre-tax charges for its restructuring. Excluding the charges, Foundation expects to report EPS of $0.24 for the quarter, which is $0.04 short of the First Call mean estimate.
QUICK TAKES: Online discount broker E*Trade Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: EGRP)") else Response.Write("(Nasdaq: EGRP)") end if %> traded up $2 1/8 to $23 1/8 after announcing a plan to offer its own line of mutual funds, starting with low expense ratio index funds, enhanced index funds, and the unfortunately named funds-of-funds... Biotechnology firm Geron Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GERN)") else Response.Write("(Nasdaq: GERN)") end if %> exploded for a $7 5/16 gain to $17 3/16 after research funded and licensed by the company successfully derived human embryonic stem cells, which may be used to supply human cells of virtually any tissue type and lead to new transplantation techniques... Coronary stent and medical device maker Guidant Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GDT)") else Response.Write("(NYSE: GDT)") end if %> advanced $3 11/16 to $82 3/16 after the FDA approved the company's ACS Multi-Link Duet advanced stent system.
Semiconductor wafer fabrication equipment maker Applied Materials <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMAT)") else Response.Write("(Nasdaq: AMAT)") end if %> picked up $2 1/16 to $36 15/16 after introducing its new Black Diamond chemical vapor deposition (CVD) dielectric film, which can be used by clients to make advanced copper interconnects... Advertising agency True North Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TNO)") else Response.Write("(NYSE: TNO)") end if %> gained $2 to $23 3/8 after France's Publicis S.A. agreed to acquire True North's 26.3% stake in the two companies' U.S. joint venture, Publicis Communications, in exchange for an 8.83% stake in Publicis S.A... Online advertising software provider NetGravity <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NETG)") else Response.Write("(Nasdaq: NETG)") end if %> rose $4 5/8 to $16 after BancBoston Robertson Stephens reiterated its "buy" rating and hinted that potential customer contracts may fuel the company's share price in the near term.
Medical devices designer and maker Respironics Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RESP)") else Response.Write("(Nasdaq: RESP)") end if %> picked up $2 3/16 to $18 1/8 after the FDA approved its BiPAP Vision Ventilatory Support System, an economical alternative therapy for treating patients suffering from acute respiratory failure or respiratory insufficiency... Enterprise capital asset maintenance software developer Project Software & Development <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PSDI)") else Response.Write("(Nasdaq: PSDI)") end if %> gained $8 1/8 to $29 after reporting fiscal Q4 EPS of $0.50 versus $0.40 a year ago, whomping the Street's mean estimate of $0.41... Grocery store operator Safeway <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SWY)") else Response.Write("(NYSE: SWY)") end if %> rose $2 13/16 to $50 on news it will be added to the S&P 500 Index on Nov. 12. Safeway will replace Chrysler <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: C)") else Response.Write("(NYSE: C)") end if %>, which S&P deemed no longer worthy of its index based on the company's pending merger with Germany's Daimler-Benz <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DAI)") else Response.Write("(NYSE: DAI)") end if %>.
Business Week's unreliable "Inside Wall Street" column speculated that Red Roof Inns <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RRI)") else Response.Write("(NYSE: RRI)") end if %> may be a possible buyout candidate, sending the economy hotel operator's shares up $2 5/8 to $20 7/16... Property and casualty insurer and reinsurer W.R. Berkley Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BKLY)") else Response.Write("(Nasdaq: BKLY)") end if %> climbed $3 1/2 to $34 1/4 after saying it has hired Morgan Stanley to explore strategic opportunities for its regional insurance companies, which may possibly result in the eventual sale of the units... Telecommunications equipment maker Teltrend Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TLTN)") else Response.Write("(Nasdaq: TLTN)") end if %> rose $4 5/16 to $19 9/16 after announcing late yesterday that it expects fiscal first quarter earnings of $0.40 to $0.42 per share, above analysts' mean estimate of $0.34. The company also plans to buy back $8 million of its outstanding shares.
Fruit grower and processor Dole Food Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DOL)") else Response.Write("(NYSE: DOL)") end if %> gained $1 7/8 to $34 1/16 following a Goldman Sachs upgrade to "trading buy" from "market perform"... Infusion pump developer MiniMed Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MNMD)") else Response.Write("(Nasdaq: MNMD)") end if %> pumped out a $4 3/4 gain to $65 3/4 after medical devices maker Medtronic <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MDT)") else Response.Write("(NYSE: MDT)") end if %> agreed to take a 3.5% stake in the company for $30 million... Managed health care and insurance holding company Mid Atlantic Medical Services <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MME)") else Response.Write("(NYSE: MME)") end if %> added $1 13/16 to $10 1/8 on speculation that the company may be a takeover target... Engineering and construction firm Jacobs Engineering Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JEC)") else Response.Write("(NYSE: JEC)") end if %> hammered out a $1 11/16 gain to $34 11/16 after saying it is discussing a possible merger with privately held rival Sverdrup Corp.
Earnings Movers
HCR Manor Care <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HCR)") else Response.Write("(NYSE: HCR)") end if %> up $1 5/8 to $34 7/8; Q3 EPS: $0.46 (before charges) vs. $0.32 last year; Estimate: $0.46
Mettler-Toledo International <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MTD)") else Response.Write("(NYSE: MTD)") end if %> up $1 1/16 to $22 7/8; Q3 EPS: $0.31 (before charges) vs. $0.10 last year; Estimate: $0.25
Sola International <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SOL)") else Response.Write("(NYSE: SOL)") end if %> up $1 15/16 to $20; fiscal Q2 EPS: $0.35 vs. $0.46 last year; Estimate: $0.33
Suiza Foods Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SZA)") else Response.Write("(NYSE: SZA)") end if %> up $4 5/16 to $38 1/4; Q3 EPS from continuing operations: $0.76 vs. $0.52 last year; Estimate: $0.75
Tarrant Apparel Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TAGS)") else Response.Write("(Nasdaq: TAGS)") end if %> up $2 115/16 to $; Q3 EPS: $0.49 vs. $0.20 last year; Estimate: $0.36
Unilever <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UN)") else Response.Write("(NYSE: UN)") end if %> up $3 1/4 to $76 5/16; Q3 EPS: $0.99 vs. $0.76 last year; Estimate: $0.78
WinStar Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WCII)") else Response.Write("(Nasdaq: WCII)") end if %> up $4 5/16 to $33 15/16; Q3 EPS: loss of $2.83 (continuing operations) vs. loss of $1.91 last year; Estimate: loss of $2.94<% ' AvantGo:End %>
<% ' AvantGo:Goats %>The outlook blurred a bit today for eye care practice management firm Vision Twenty-One <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: EYES)") else Response.Write("(Nasdaq: EYES)") end if %>, which fell back $2 1/8, or 30%, to $5 after it said to expect a one-time, unspecified charge during the fourth quarter in connection with an outside efficiency review that will save the company an estimated $2 million in annual costs. That news was compounded by the announcement of Q3 earnings, which came in at $0.05 per share (before charges), $0.02 ahead of last year's figure but well off First Call's $0.16 estimate. Vision Twenty-One also plans to sell its buying group division, giving a boost to 1999 earnings and helping operating margins. It will also roll out several new managed care contracts expected to add between $1.5 million to $2 million to next year's gross profits.
There were some hard lessons in the halls of higher learning today as post-secondary career education company EduTrek International <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: EDUT)") else Response.Write("(Nasdaq: EDUT)") end if %>, the operator of American InterContinental University, crumbled $2 7/8 to $6 1/8 after saying below-projection fall enrollment will hurt earnings for the fiscal year ending May 31. While total enrollment at EduTrek's four "traditional" campuses was above plan, the company's three "Power Campuses" in Washington, D.C., Los Angeles, and Atlanta suburb Dunwoody missed projections by nearly 27%. CEO Steve Bostic blamed shortages in recruiting and admissions staff for the shortfall and said the company has "taken measures to address these problems." CS First Boston downgraded EduTrek to "buy" from "strong buy."
QUICK CUTS: Automaker Chrysler Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: C)") else Response.Write("(NYSE: C)") end if %> skidded $1 1/8 to $50 1/8 as Business Week quoted senior company executives as saying that CEO Robert Eaton might step down as co-CEO of the combined DaimlerChrysler before 2001, as originally planned... Dutch passenger and cargo airline KLM Royal Dutch Airlines <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KLM)") else Response.Write("(NYSE: KLM)") end if %> hit some turbulence today, losing $2 11/16 to $28 9/16 after it said its "load factor," a measure of total capacity use, fell to 78.5% in October, down from 81.3% a year ago... Entertainment and consumer products retailer and direct marketer K-tel International <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: KTEL)") else Response.Write("(Nasdaq: KTEL)") end if %> sagged $2 3/16 to $10 5/16 today after investors ran it up as much as 128% this week on news of a partnership with Playboy Online to create a co-branded online music store within Playboy.com.
Full-service seed company AgriBioTech <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ABTX)") else Response.Write("(Nasdaq: ABTX)") end if %> wilted $1 1/2 to $11 13/16 after it said it expects fiscal Q1 EPS to fall below analysts' mean estimate of $0.04 per share. The company also sees a one-time charge of between $5 million and $15 million for integrating recent acquisitions and a corresponding loss for fiscal 1999. For more about AgriBioTech, check out the StockTalk interview with CEO Johnny Thomas... Home electronics and computer retailer Circuit City <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CC)") else Response.Write("(NYSE: CC)") end if %> blinked down $1 15/16 to $36 7/16 after NationsBanc Montgomery cut it to "hold" from "buy" and Wheat First Union downgraded it to "hold" from "outperform"... Cruise line operator Carnival Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CCL)") else Response.Write("(NYSE: CCL)") end if %> sank $1 13/16 to $33 after Donaldson, Lufkin & Jenrette downgraded the company to "buy" from "top pick" with a 12-month target price of $42.
USX-U.S. Steel <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: X)") else Response.Write("(NYSE: X)") end if %> rusted $7/8 to $25 3/4 after Morgan Stanley Dean Witter downgraded the steel maker to "outperform" from "strong buy"... Poultry producer and processor Tyson Foods <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TSN)") else Response.Write("(NYSE: TSN)") end if %> was plucked for a $15/16 loss to $24 7/16 after J.P. Morgan chopped its rating on the company to "long-term buy" from "buy" and A.G. Edwards downgraded it to "accumulate" from "buy"... Recoton Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RCOT)") else Response.Write("(Nasdaq: RCOT)") end if %>, which makes consumer electronic accessories, loudspeakers, and car audio products, buzzed down $3 9/16 to $19 3/16 after reporting Q3 EPS of $0.30, falling behind last year's $0.38 mark and missing the Street's $0.53 mean estimate... Hagler Bailly <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HBIX)") else Response.Write("(Nasdaq: HBIX)") end if %> shed $4 1/8 to $18 1/2 after the energy, telecommunications, environmental, and transportation industry management consulting company was downgraded to "market perform" from "buy" by Donaldson, Lufkin & Jenrette.
Enterprise resource planning (ERP) software developer QAD Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: QADI)") else Response.Write("(Nasdaq: QADI)") end if %> fell $2 1/16 to $4 9/16 after saying it anticipates "greater than expected" Q3 losses when it reports results Nov. 24. Wall Street currently estimates a Q3 loss of $0.08 per share, down from profit of $0.05 per share a year ago... Supply chain management systems company Industri-Matematik International <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IMIC)") else Response.Write("(Nasdaq: IMIC)") end if %> dropped $1 3/16 to $5 after late yesterday's announcement that it expects a fiscal Q2 loss of $0.30 to $0.34 per share because of lower-than-expected service revenues and rising costs in services and product development. A pair of analysts surveyed by First Call expected a loss of $0.12... Internet hardware and software company Netopia Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NTPA)") else Response.Write("(Nasdaq: NTPA)") end if %> slid $1 to $5 1/8 after it reported a fiscal Q4 loss from continuing operations of $0.51 per share (including several charges) compared with last year's loss of $0.05.
Sewing machine giant Singer Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SEW)") else Response.Write("(NYSE: SEW)") end if %> unraveled $7/8 to $5 1/16 after it reported a Q3 loss of $0.13 per share, its fourth straight quarter in the red, well off last year's profit of $0.02. The company warned that Q4 results also will be lower than expected... Children's safety helmets and bicycle accessories maker PTI Holding <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PTII)") else Response.Write("(Nasdaq: PTII)") end if %> creaked down $1 9/16 to $4 1/8 after it said Q3 EPS was $0.02, down from $0.13 a year ago and missing two analysts' $0.13 consensus... UBICS Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: UBIX)") else Response.Write("(Nasdaq: UBIX)") end if %> retreated $15/16 to $4 5/8 after the information technology services provider said its sales staffing is below plan, which will hurt earnings for the next two quarters. Q3 EPS was $0.10, which was $0.02 below last year's number but in step with First Call's mean estimate of two analysts.
Alternative risk insurance company Meadowbrook Insurance Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MIG)") else Response.Write("(NYSE: MIG)") end if %> slumped $15/16 to $15 13/16 after Merrill Lynch lowered its rating on the company to "neutral" from "accumulate"... Auto repair service and parts retailer Sonic Automotive <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SAH)") else Response.Write("(NYSE: SAH)") end if %> screeched for a $2 loss to $21 despite its announcement of Q3 EPS of $0.42, up from $0.15 last year and $0.03 above Street estimates... Surgical systems and medical devices developer Zevex International <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ZVXI)") else Response.Write("(Nasdaq: ZVXI)") end if %> tumbled $1 to $5 1/4 before being halted in advance of announcing late in the day its acquisition of two private companies, Aborn Electronics and JTech Medical Industries, for a total consideration of roughly $12.35 million... Digital satellite telecommunications and wireless signal processing equipment ViaSat <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VSAT)") else Response.Write("(Nasdaq: VSAT)") end if %> lost $1 1/8 to $11 1/4 after reporting fiscal Q2 EPS of $0.17, $0.02 above last year's mark but flat with analysts' consensus estimates.<% ' AvantGo:End %>
FOOL
ON THE HILL
An Investment Opinion
by
Warren Gump
Industry In Turmoil: How Can Investors Profit?
<% ' AvantGo:FOTH %>Holders of vitamin-related stocks have had a pretty unhealthy second half of the year. The problems were exacerbated yesterday when Rexall-Sundown <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RXSD)") else Response.Write("(Nasdaq: RXSD)") end if %> announced that earnings per share for the quarter ending in November would fall below the prior year's $0.20, which is well below analyst estimates of $0.28. Not surprisingly, Rexall tumbled 41% to $13 1/16. In sympathy, most of the other major stocks in the industry fell as well, with General Nutrition <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GNCI)") else Response.Write("(Nasdaq: GNCI)") end if %> and Twinlab <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TWLB)") else Response.Write("(Nasdaq: TWLB)") end if %> each falling 17%, Natures Bounty <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NBTY)") else Response.Write("(Nasdaq: NBTY)") end if %> tumbling 15%, and Whole Foods Markets <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WFMI)") else Response.Write("(Nasdaq: WFMI)") end if %> squeezed for a 9% hit.
These plunges follow an even more severe hit taken by the sector in early August when General Nutrition stated that it would cut prices on basic products to battle increasing competition. On the news of a potential price war, all of the above stocks fell over 20%, except for Nature's Bounty, which "only" fell 14%. To see the cumulative impact of these events, the table below shows the total losses in these stocks since June 30th:
6/30/98 11/5/98 Loss
RXSD 35 5/8 13 1/16 63%
NBTY 18 3/8 7 5/8 58%
GNCI 31 1/8 14 1/4 54%
TWLB 43 11/16 21 11/16 50%
WFMI 60 1/2 39 13/16 34%
Please see the Motley Fool's Conference Calls page for call information and links to synopses.
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