THE MOTLEY FOOL LUNCHTIME NEWS
Friday, May 17, 1996
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Wayne's World Wayne Huizenga is probably most famous for building solid-waste hauler WMX Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WMX)") else Response.Write("(NYSE: WMX)") end if %> into an industry giant, although his relatively-short stint as chief executive officer (CEO) of the video-rental chain Blockbuster had explosive results for shareholders as well when Viacom <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: VIA/A)") else Response.Write("(AMEX: VIA/A)") end if %> bought out the company at a substantial premium. Many investors believe that Huizenga is working to recreate his previous empire-building successes through the vehicle of Republic Industries (NASDAQ: RWIN, formerly Republic Waste), creating a diversified solid-waste, used-car and electronic security monitoring monster. Republic was up $3 1/4 to $43 7/8 today after it announced it would acquire each share of Continental Waste <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: CONT)") else Response.Write("(NASDAQ: CONT)") end if %> for 0.4 shares of Republic. This news caused Continental to climb $2 7/8 to $16 1/4. This stock-for-stock deal was announced concurrently with a massive $200 million private placement. A little more than a week ago Republic soared after an upbeat shareholder meeting where the company discussed its aggressive plans for its new AutoNation chain of user-car lots, purchased for $250 million in stock in April. This was only a month after Huizenga closed the acquisition of Mid-American Waste, Denver Fire (the security company) and grabbed up three solid-waste hauling companies owned by a private individual. UPGRADES & DOWNGRADES Executive Telecard <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: EXTL)") else Response.Write("(NASDAQ: EXTL)") end if %> rose $5/8 to $12 7/8 this morning, continuing to ride a Smith Barney recommendation as well as its winning a place in Inc. Magazine's 100 fastest growing companies. CS First Boston made cellular phone manufacturer Nokia <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NOK/A)") else Response.Write("(NYSE: NOK/A)") end if %> a featured stock, boosting the shares $3 1/8 to $39 1/2 this morning. Donaldson, Lufkin & Jenrette downgraded electronics part distributors from "market outperform" to "market perform" -- AVX Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AVX)") else Response.Write("(NYSE: AVX)") end if %>, down $1 to $22 3/4, and Kemet Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: KMET)") else Response.Write("(NASDAQ: KMET)") end if %>, losing $1/2 to $22 3/4. EARNINGS SURPRISES Land's End <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LE)") else Response.Write("(NYSE: LE)") end if %> continued to benefit from its substantial earnings surprise on Thursday, reporting $0.13 EPS when expectations were only for $0.04. Dain Bosworth has raised its rating and EVEREN Securities has pumped up estimates as a result of this. The stock rose $1 1/2 to $22 1/2 in morning trading. ODDS & ENDS Iomega <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: IOMG)") else Response.Write("(NASDAQ: IOMG)") end if %> exploded up $6 7/8 to $76 1/8 today on the eve of the company's 2-for-1 stock split, occurring only a few weeks after the company previously split 3-for-1. FPA Medical <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: FPAM)") else Response.Write("(NASDAQ: FPAM)") end if %> will merge with Sterling Healthcare <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:STER)") else Response.Write("(NASDAQ:STER)") end if %> in a pact valued at $200 million, with Sterling shareholders getting 1.4 shares in the combined company, boosting Sterling Healthcare $1 1/2 to $20 3/4. FPA Medical slid $1 1/16 to $16 11/16. The companies are part of the quickly consolidating physician practice management industry. Rumors about Baan Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: BAANF)") else Response.Write("(NASDAQ: BAANF)") end if %> potentially getting an important contract with Ford Motor companies are moving the stock again, up $6 1/4 to $77 1/8 today. Despite recent news that a group of investors led by George Soros had taken a massive stake in Israeli-printing technology developer Indigo NV <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: INDGF)") else Response.Write("(NASDAQ: INDGF)") end if %>, shares fell $1 to $16 3/8 today. Randy Befumo (MF Templar), a
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