Stocks to Watch: Unilever, iVillage Form Internet Joint Venture

Unilever (UN) said it formed an Internet company with iVillage (IVIL). The two companies set a joint venture to sell beauty and personal care products online. Unilever and iVillage plan to provide $200 million in cash, intellectual property, marketing and other resources, Unilever said.

Mergers, acquisitions and joint ventures

IBM (IBM) and Symbian said they would create software for business users that would give users of Symbian-based wireless Smartphones and Communicators instant access to Web and corporate data.

Intel(INTC) said it would make a $100 million investment in Symbol Technologies(SBL) and work with Symbol to develop wireless networking products. The investment, which represents roughly 1.4 million shares of Symbol, would give Intel a 1.5% interest in the company. The companies expect to launch their first product line in 2000.

Today Symbol posted fourth-quarter earnings of 35 cents a share, a penny ahead of the 12-analyst estimate and up from the year-ago 26 cents.

Nokia (NOK) said it agreed with Vodafone (VOD) in New Zealand for a trial of its General Packet Radio Service, or GRPS, and Wireless Application Protocol Systems.

Earnings/revenue reports and previews

(Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.)

BP Amoco (BPA) said fourth-quarter profit more than doubled as a result of rising oil prices and cost-cutting. The London-based company's profit rose to $2.1 billion, or 8.67 cents a share, before one-time items, from $866 million, or 2.68 cents a share, a year earlier. The profit was in the middle of analysts' expectations, which ranged from $2.05 billion to $2.28 billion.

CBS (CBS) posted fourth-quarter earnings of 3 cents a share, a penny ahead of the five-analyst estimate and and up from the year-ago break-even results.

Infinity Broadcasting (INF) reported fourth-quarter earnings of 13 cents a share, in line with the six-analyst estimate and up from the year-ago 10 cents. The company said it is on target to exceed $1 billion in free cash flow.

Thomas & Betts (TNB) posted fourth-quarter earnings of 40 cents a share, well below the five-analyst estimate of 60 cents and the year-ago 81 cents a share. The company said shipping disruptions resulting from implementation of a new Web-enabled order management system lowered sales and profits in the latest quarter.

Wal-Mart (WMT) posted fourth-quarter earnings of 43 cents a share, a penny ahead of the 18-analyst estimate and up from the year-ago 35 cents.

Zale (ZLC) posted second-quarter earnings of $2.33 a share, beating the 15-analyst estimate of $2.27 and the year-ago $1.75.

Offerings and stock actions

Robertson Stephens priced a 4.85 million-share IPO for Chordiant Software(CHRD) at $18 a share.

Merrill Lynch and Morgan Stanley Dean Witter priced a 17 million-share IPO for Savvis(SVVS) at $24 a share.

Robertson Stephens priced a 4.075 million-share IPO for VarsityBooks.com(VSTY) at $10 a share.

Wilsons The Leather Experts (WLSN) set a 3-for-2 stock split.

Analyst Actions

Lehman Brothers started Columbia/HCA Healthcare (COL) as a buy and set a price target of 35.

Credit Suisse First Boston cut Compucom's (CMPC) 2000 earnings-per-share estimate to 37 cents from 66 cents and kept a hold rating on the stock.

Bear Stearns started coverage of Go.com (GO) as a buy.

Lehman started Lifepoint (LPNT) as a buy with a price target of 26.

Lehman raised Texaco (TX) to buy from neutral with a 12-month price target of 65.

Lehman started Triad Hospitals (TRIH) as a buy and set a price target of 30.

Lehman started coverage of Universal Health Services (UHS) as an outperform and set a price target of 60.

Lehman raised Weirton Steel (WS) to buy from outperform.

Miscellany

Berkshire Hathaway (BRK.A) has unveiled an interest in the clothing trade, The Wall Street Journal reports. Warren Buffet's company disclosed it has taken significant minority stakes in Liz Claiborne (LIZ) and Jones Apparel (JNY) as well as Dun & Bradstreet (DNB), the story said. Documents filed with the Securities and Exchange Commission also showed Berkshire holding $449 million of Citigroup (C) stock at the end of 1999.

The Heard on the Street column in the Journal says margin debt, or the amount of debt investors borrow to buy stock, set a record in January. The story says margin debt rose 7% among New York Stock Exchange member-brokerage firms, to $243.5 billion in January. Margin levels are now up 36% since September. The worry is that the debt level could exacerbate a market decline, since selling would accelerate from investors attempting to meet margin calls.

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For analysis of the market's preopen tone and trends, see the Wake-Up Call, now published separately.

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