Investment Opinion
FOOL PLATE SPECIAL
AOL'S TRIALS & ERRORS
AMERICA ONLINE'S <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: AMER)") else Response.Write("(NASDAQ: AMER)") end if %> lawyers stated on Friday that, "Current customers will also receive automatically millions of hours of free time, with additional free time provided for heavy users, while former subscribers may apply for cash compensation." Should AOL subscribers be dancing in the streets at the thought of the millions of free hours that each of them can now enjoy? Not quite. The preliminary settlement of eleven class action lawsuits will amount to one free hour each for most qualifying customers (those with $300 in charges during the period in question).
The suit had challenged AOL's billing practices, which involved adding 15 seconds to each connection time and then rounding up to the next minute. AOL had also, on occasion, apparently charged some customers for time spent in "free" areas. AOL customers may have noticed that AOL has already improved its disclosure practices, informing them of how much time they're being charged for at the end of each online session. Despite the outrage of some customers, the concept of rounding up to the nearest minute isn't new -- phone companies, for example, have been doing it for a long time. What does all this mean for the bottom line, and for investors? Charges of roughly $22 million, for a company with nearly $400 million in fiscal 1995 revenues and an estimated five-year growth rate of 50%. Since the company currently is in a quiet period, it isn't able to comment on the settlement's effect on earnings. America Online stock was down $5/8 to $40 1/2.
MOTOROLA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MOT)") else Response.Write("(NYSE: MOT)") end if %> popped up $2 1/4 to $68 1/8 on an upgrade from Cowen & Co. from "neutral" to "strong buy". Cowen is predicting a revival in growth for the cellular phone industry.
ROBOTIC VISION SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ROBV)") else Response.Write("(NASDAQ: ROBV)") end if %> surged $1 1/8 to $17 1/4 after the FAA approved its ID-1H wide area ice detection system, intended to help major airlines with their de-icing systems.
CANDELA CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: CLZR)") else Response.Write("(NASDAQ: CLZR)") end if %> lit up $1/2 to $8 1/4 after the Food & Drug Administration (FDA) cleared its laser treatment Alexlazr, which treats, among other things, brown skin spots caused by exposure to the sun.
MATRITECH <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: NMPS)") else Response.Write("(NASDAQ: NMPS)") end if %> shares increased $1 3/8 to $11 5/8 after the company's NMP22(R) bladder cancer test kit was approved for sale by the FDA.
QUEST MEDICAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: QMED)") else Response.Write("(NASDAQ: QMED)") end if %> shares rose $7/8 to $8 1/4 after the company named recently-elected outside director Richard A. Gilleland as Chairman of the Board.
Portable teletransaction system developer TELXON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: TLXN)") else Response.Write("(NASDAQ: TLXN)") end if %> shares jumped $7/8 to $13 after the company announced that its plan to buy back up to 3 million shares had been cleared and that 100,000 shares had already been bought back.
Finnish telecom concern NOKIA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NOK/A)") else Response.Write("(NYSE: NOK/A)") end if %> rang up $1 3/4 to $38 1/2 on expected growth in the cellular phone industry, strong demand in Japan, and some newly-announced deals.
No FAULDING <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: FAUL)") else Response.Write("(NASDAQ: FAUL)") end if %> investors were crying "faul" today, as shares popped up $3/8 to $6 after the FDA approved marketing for Kadian, a single daily dosage morphine product to treat cancer patients in pain.
SYMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SYM)") else Response.Write("(NYSE: SYM)") end if %>, where the educated consumer shops, rose $1/2 to $7 7/8 after reporting first quarter earnings of $0.19 compared to $0.06 in the year-ago period, on a 4-cent charge.
BIOMET <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: BMET)") else Response.Write("(NASDAQ: BMET)") end if %> is up $5/8 to $14 1/4 after reporting fourth quarter earnings of $0.24 per share versus $0.19 in the year-ago period.
SPEEDFARM INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: SFAM)") else Response.Write("(NASDAQ: SFAM)") end if %> grew $1 3/8 to $16 3/8 after reporting fourth quarter earnings of $0.46 per share, compared to $0.19 in the year-ago quarter.
Computer and data processing concern ISOCOR <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: ICOR)") else Response.Write("(NASDAQ: ICOR)") end if %> plunged $4 to $9 1/2 after warning that it expects to report a second quarter loss of $200,000 to $350,000 on $5 million in revenues, due to more uncertain sales cycles and high-end products.
MARTEN TRANSPORT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: MRTN)") else Response.Write("(NASDAQ: MRTN)") end if %> backed up $3 3/4 to $13 1/2 after being downgraded by Alex. Brown from "strong buy" to "buy".
IN FOCUS SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: INFS)") else Response.Write("(NASDAQ: INFS)") end if %> has apparently lost its focus a bit, reporting a second quarter loss of $0.10 per share, compared to earnings of $0.47 per share (EPS) in the year-ago quarter. Revenues were down 13%, and shares slid $5 5/8 to $17 3/8.
Recent initial public offering (IPO) DONNA KARAN <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DK)") else Response.Write("(NYSE: DK)") end if %> slumped $1 3/8 to $24 5/8, retreating a little from its initial surge last week.
None