Tuesday, April 30, 1996
THE MARKET MIDDAY
FOOL PLATE SPECIAL
Internet-access provider UUNet Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: UUNT)") else Response.Write("(NASDAQ: UUNT)") end if %> was taken out
by telecommunications provider MFS Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MFST)") else Response.Write("(NASDAQ: MFST)") end if %> in an
acquisition valued at $2 billion yesterday. MFS is a so-called "second tier"
phone company, providing local service for business customers in a number
of cities across the United States. As UUNet and MFS Communications both
operate in many of the same metropolitan areas, the combined company can
now provide phone service and Internet access in one simple packaging, servicing
all the needs of business customers. Each share of UUNet will be traded in
for 1.777776 shares of MFS Communications common. UUNet surged $7 1/8 to
$55 3/8 while MFS Communications dropped $2 1/8 to $32 1/2. Both companies
have been rumored for months as potential acquisition targets for one of
the major long distance providers -- that they are both now in one neat package
only enhances this. Netcom Online <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: NETC)") else Response.Write("(NASDAQ: NETC)") end if %> rose $3 3/8 to $35 7/8,
BBN Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BBN)") else Response.Write("(NYSE: BBN)") end if %> surged $1 1/8 to $28 3/4 and PSINet <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: PSIX)") else Response.Write("(NASDAQ: PSIX)") end if %> was
up $2 1/8 to $13 7/8 in sympathy with this news.
UPGRADES & DOWNGRADES
Dean Witter upgraded Fremont General <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FMT)") else Response.Write("(NYSE: FMT)") end if %> to "buy" from "accumulate",
raising fiscal 1996 estimates to $2.45 and fiscal 1997 estimates to $2.70,
and pushing the stock up $1 1/4 to $25 1/8.
Smith Barney slashed Mercury Interactive <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MERQ)") else Response.Write("(NASDAQ: MERQ)") end if %> to "neutral" from
"outperform" based on the company's indication last night of weakness in
Europe, cutting $4 3/4 off the price to trade at $14 1/4.
Intersolv <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ISLI)") else Response.Write("(NASDAQ: ISLI)") end if %> got the unkindest cut from Alex Brown, dropping
$2 7/8 to $10 7/8 after analyst William Shattuck dropped his rating from
"buy" to "neutral".
Vishay Intertechnology <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: VSH)") else Response.Write("(NYSE: VSH)") end if %> slumped $2 to $31 1/4 after Merrill
Lynch moved it from "near-term buy" to "near-term accumulate".
Merrill Lynch also cut its near-term rating on Kemet Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: KMET)") else Response.Write("(NASDAQ: KMET)") end if %>
to "accumulate" from "buy", sending shares down $3 1/4 to $23 1/2.
EARNINGS SURPRISES
Medical equipment concern Sunrise Medical <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SMD)") else Response.Write("(NYSE: SMD)") end if %> smashed through
consensus estimates by $0.09 yesterday, with much-higher-than-expected gross
margins, rising $3/4 to $18 3/8 for its trouble.
Prudential Reinsurance Holdings <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RE)") else Response.Write("(NYSE: RE)") end if %> popped up $3/4 to $22 3/4 after
they beat consensus estimates of $0.42 EPS by $0.13 EPS when they reported
first quarter earnings this morning.
Performance Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: PTIX)") else Response.Write("(NASDAQ: PTIX)") end if %> blew the doors off of estimates,
reporting $0.20 EPS versus expectations of $0.15 EPS for their first quarter,
but slipping $1/4 to $14 3/4.
Amerilink <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ALNK)") else Response.Write("(NASDAQ: ALNK)") end if %> got hosed for $1 1/4 to $7 3/4 when it stated
that it would post disappointing fourth quarter earnings that would show
a loss of $0.02 to $0.04 EPS compared to income of $0.01 EPS a year ago.
Not all of the bad news was in the stock, after all. Eagle Point Software
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: EGPT)") else Response.Write("(NASDAQ: EGPT)") end if %> dropped $1 3/8 to $8 3/4 after it tumbled from its $20 high
last month when it finally released ugly third quarter net of $0.06 EPS.
Isolyser <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: OREX)") else Response.Write("(NASDAQ: OREX)") end if %> tumbled $2 7/8 to $17 3/4 after posting a first
quarter loss of $0.01 EPS compared to estimates of a $0.01 EPS profit.
Aavid Thermal <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: AATT)") else Response.Write("(NASDAQ: AATT)") end if %> dropped $1 to $8 7/8 when it disappointed
consensus estimates of $0.18 EPS by a penny.
Pacemaker manufacturer Ventritex <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: VNTX)") else Response.Write("(NASDAQ: VNTX)") end if %> missed its pace and
disappointed estimates that called for a $0.49 EPS loss by posting an even
greater $0.66 EPS loss. Shares fell $1 1/8 to $16 1/8.
ODDS & ENDS
Interneuron Pharmaceuticals <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: IPIC)") else Response.Write("(NASDAQ: IPIC)") end if %> soared $4 5/8 to $41 3/4 after
its anti-obesity drug Redux was cleared for marketing by the Food & Drug
Administration.
A study with the awkward title of "Prevention of Cardiovascular and Renal
Pathology of Aging by the Advanced Glycation Inhibitor Aminoguanidine" caused
pimagedine developer Alteon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ALTN)") else Response.Write("(NASDAQ: ALTN)") end if %> to jump $3/4 to $13 1/8. Early
results show the drug (also known as aminoguanidine) protecting against
aging-related problems in non-diabetic rats.
Amati Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: AMTX)") else Response.Write("(NASDAQ: AMTX)") end if %>, best known for its Asynchronous Digital
Subscriber Line (ADSL) technology, surged $2 3/8 to $17 3/4 after unveiling
an agreement with Motorola <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MOT)") else Response.Write("(NYSE: MOT)") end if %> to jointly develop modem products
based on the Motorola ADSL chip.
Circle Financial Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: CRCL)") else Response.Write("(NASDAQ: CRCL)") end if %> is being bought by Fidelity Financial
of Ohio <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: FFOH)") else Response.Write("(NASDAQ: FFOH)") end if %> for $38 cash per share. Circle shares rose $6 1/2
to $34 in response.
Randy Befumo (MF Templar), a
Fool Transmitted: 4/29/96
Selena Maranjian (MF Selena),
another Fool