Monday, May 6, 1996
THE MARKET MIDDAY
FOOL PLATE SPECIAL
Zenith Electronics <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ZE)") else Response.Write("(NYSE: ZE)") end if %> continues to rise, up $2 5/8 to $18 3/8,
on prospects for its cable modems. Last week the company announced a partnership
with U.S. Robotics <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: USRX)") else Response.Write("(NASDAQ: USRX)") end if %> to begin selling cable modems with a
telecommunications feedback loop, as well as developing a cable modem using
off-the-shelf Cisco <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: CSCO)") else Response.Write("(NASDAQ: CSCO)") end if %> routers and Microsoft's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MSFT)") else Response.Write("(NASDAQ: MSFT)") end if %>
Windows NT. The Zenith/US Robotics product would allow cable companies to
deploy cable modems without waiting for their lines to be upgraded to support
two-way communications. Users would get all of their data via the one-way
cable line and simply respond back via the telephone. The traditional cable
modem product, which would not enter beta testing until the end of the year,
simply utilizes Cisco and Microsoft products in its design and competes head
on with similar offerings from Motorola <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MOT)") else Response.Write("(NYSE: MOT)") end if %> and Hewlett-Packard <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:HWP)") else Response.Write("(NYSE:HWP)") end if %>.
UPGRADES & DOWNGRADES
Universal Stainless (NSADAQ: USAP) belly-flopped $2 1/2 to $9 after the
company revealed that it would only make $0.15 EPS in its next quarter due
to "market volatility." Oppenheimer & Co. took the opportunity to drop
the stock from "buy" to "market perform", and snipped fiscal '96 estimates
to $0.85 EPS and fiscal '97 numbers to $1.60 EPS.
The fact that Dabney Resnik lowered its rating on AML Communications <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:AMLJ)") else Response.Write("(NASDAQ:AMLJ)") end if %> to "long-term attractive" from "long-term buy" based on the fact that
it exceeded its $30 share target three days after the buy recommendation
did not stop the stock, up $1 1/2 to $31 today.
Cygnus Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: CYGN)") else Response.Write("(NASDAQ: CYGN)") end if %> got slammed for $2 11/16 to $18 1/4 by Hambrecht
& Quist analyst Alex Zisson, who downgraded the stock to "hold" from
"buy" after stating that the company had a "terrible track record of execution".
EARNINGS SURPRISES
Air-shipping firm Greenwich Air <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: GASI)") else Response.Write("(NASDAQ: GASI)") end if %> jumped $1 1/2 to $44 after
the company blew through estimates of $0.32 EPS, reporting $0.36 EPS in its
fiscal second quarter.
Core Industries <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CRI)") else Response.Write("(NYSE: CRI)") end if %> surged $7/8 to $15 1/8 after President David
Zimmer forecast compound growth of at least 15% per year over the next few.
The company makes fluid control, measuring and test equipment for industry.
Not enough people were dialing up MovieFone <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MOFN)") else Response.Write("(NASDAQ: MOFN)") end if %> to check out
what was playing at the theaters in the last quarter; the stock fell $1 13/16
to $4 3/4 after it lost $0.07 EPS in the last quarter compared to $0.08 EPS
the year ago.
Theft-prevention device manufacturer Sensormatic Electronics <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SRM)") else Response.Write("(NYSE: SRM)") end if %>
got pounded for $1 1/8 to $19 1/2 when it announced a third-quarter operating
loss, excluding charges, of $0.02 EPS compared to estimates of a $0.09 EPS
profit.
Ethical drug developer Forest Labs <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FRX)") else Response.Write("(NYSE: FRX)") end if %> got smashed this morning
when it missed estimates of $0.52 EPS by two cents, forecasting lower earnings
for the first two to three quarters of fiscal '97 as it expands its sales
force. Shares dropped $3 3/8 to $42 3/8
ODDS & ENDS
Great Lakes Chemical Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GLK)") else Response.Write("(NYSE: GLK)") end if %> set off a hostile bidding war for
Nowsco Well Services <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: NWSLF)") else Response.Write("(NASDAQ: NWSLF)") end if %> over the weekend when it topped BJ Services
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BJS)") else Response.Write("(NYSE: BJS)") end if %> for the oilfield equipment and service concern. Nowsco shares
rose $1 13/16 to $23 7/16.
Specialty-chip manufacturer IMP Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: IMPX)") else Response.Write("(NASDAQ: IMPX)") end if %> continued to push
ahead, rising $2 to $21 1/4 on the prospects of sales for its "Zip chip",
a device used to make Iomega's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: IOMG)") else Response.Write("(NASDAQ: IOMG)") end if %> Zip drive.
ENCAD Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ENCD)") else Response.Write("(NASDAQ: ENCD)") end if %> soared $1 1/2 to $37 1/4 after the printer
manufacturer announced a 2-for-1 split, not more than six months after
pre-announcing a poor third quarter made the stock plunge to $13 a share.
Shares of ValuJet <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: VJET)") else Response.Write("(NASDAQ: VJET)") end if %> continued to crash, down $2 1/4 to $18
3/8 after releasing news on Friday that its April load factor fell to 61.8%
from 74.6% the year before.
Listed in the Wall Street Journal today as one of the stocks most talked
about at the recent Hambrecht & Quist Technology conference, Arbor Software
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ARSW)") else Response.Write("(NASDAQ: ARSW)") end if %> fell $3 3/4 to $59 1/2 today.
Only two trading days after the stock surged on prospects for its sales
to manufacturers of cable modems, Stanford Telecom <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: STII)") else Response.Write("(NASDAQ: STII)") end if %> gave back
$2 3/8 to $45.
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Fool Transmitted: 5/06/96
Selena Maranjian (MF Selena),
another Fool