Company Report: Jackpot Jumps 50% on News of Internet Plans
Eileen Kinsella
03/08/00 - 05:36 PM EST
Jackpot Enterprises(J Quote - Cramer on J - Stock Picks) was a big gainer, jumping 7, or 49.6%, to 21 1/8 after it said it was converting itself into an Internet investment company and would examine alternatives for its traditional gaming business. The company said it would create a $100 million Internet fund and take a 35% interest in Digital Boardwalk. (
Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.)
Mergers, acquisitions and joint ventures
IBM(IBM Quote - Cramer on IBM - Stock Picks) gained 2 7/8 to 105 7/8 after it agreed to an Internet B2B commerce pact with i2(ITWO Quote - Cramer on ITWO - Stock Picks) and Ariba(ARBA Quote - Cramer on ARBA - Stock Picks). The deal, which will help firms launch B2B marketplaces, calls for IBM to make minority investments in i2 and Ariba. Ariba gained 6 1/2 to 331, while I2 popped 13.2%, to 190 5/8. J.P. Morgan started coverage of Ariba with a buy rating.
APEX(APEX Quote - Cramer on APEX - Stock Picks) rose 6 1/8, or 17%, to 42 1/8 after it agreed to a merger with Cybex Computer(CBXC Quote - Cramer on CBXC - Stock Picks). Cybex lost 3 13/16, or 8.5%, to 41. APEX said its shareholders would own 55% of the newly formed company. The deal would be accretive to earnings before extraordinary items within a year. APEX said it has tapped Stephen Thorton as chairman, president and CEO of the merged company. CNA(CNA Quote - Cramer on CNA - Stock Picks) slipped 3/8 to 24 3/4 after it said it is contemplating a possible sale of its individual life insurance and life reinsurance divisions. The insurer said it has brought Donaldson Lufkin & Jenrette on board to explore the possible sale. DaimlerChrysler (DCX Quote - Cramer on DCX - Stock Picks) and Mitsubishi are negotiating a possible deal that could form the world's third-biggest carmaker, The Wall Street Journal reported. Sources told the Journal that the pact is not certain. DaimlerChrysler gained 1 13/16 to 61 13/16. Deutsche Bank and Dresdner Bank are moving closer to a $29.74 billion merger, The Wall Street Journal reported. According to the paper, the potential merger would create a financial-services operation with over $1.2 trillion in assets. Internet Capital Group (ICGE Quote - Cramer on ICGE - Stock Picks) dropped 3 1/16 to 138 1/8 after it said it would pay $22 million in cash and $635 million in stock for a majority stake in Rightworks. J.P. Morgan initiated coverage of the stock with a buy rating. Occidental Petroleum(OXY Quote - Cramer on OXY - Stock Picks) slipped 1/8 to 17 7/16 after it said it has entered a $3.6 billion deal to acquire Altura Energy from BP Amoco (BPA Quote - Cramer on BPA - Stock Picks) and Shell. BP Amoco gained 2 5/16 to 53. Occidental said the purchase would add 50 cents a share to its fiscal 2000 earnings. Pinnacle(PNK Quote - Cramer on PNK - Stock Picks) rose 1 3/4, or 9.1%, to 21 after it said Harveys Casino Resorts has launched a $625 million offer for Pinnacle. According to the terms, Harveys would pay $25 a share for Pinnacle, which owns eight casinos in Nevada, Mississippi, Louisiana and Argentina. PNC Bank(PNC Quote - Cramer on PNC - Stock Picks) slipped 1/16 to 36 5/8 and Perot Systems (PER Quote - Cramer on PER - Stock Picks) rose 1 1/4, or 5.9%, to 22 5/16 after the companies said they have entered a venture to create a B2B digital marketplace for billing called Billingzone. Qwest(Q Quote - Cramer on Q - Stock Picks) fell 2 5/16 to 53 11/16 after CEO Joe Nacchio told Reuters that the reason for Qwest's planned merger with U.S. West (USW Quote - Cramer on USW - Stock Picks)"still holds." U.S. West rose 1 1/2 to 69 5/8. Offerings and stock actions
Crayfish (CRFH Quote - Cramer on CRFH - Stock Picks), the Japanese email service appealing to investors hungry for Asian stocks, burst out of the IPO gates on the Nasdaq Wednesday afternoon. The stock, which Morgan Stanley Dean Witter priced at $24.50 on Monday, opened at 96, 292% above its offer price, soaring to a high of 101 before coming back down. It closed up 101 1/2, or 414.2%, to 126. The company's success wasn't a surprise (TheStreet.com took a look at Crayfish last week). Investors were eager to welcome the entry by Hikari Tsushin, a Japanese Internet investment firm that rivals powerhouse Softbank and has a 50.1% stake in Crayfish. Crayfish was also hot on the heels of other Asian Nasdaq successes, including Chinadotcom (CHINA Quote - Cramer on CHINA - Stock Picks) and Korea Thrunet (KOREA Quote - Cramer on KOREA - Stock Picks). Japanese investors will also have a shot at getting in on Crayfish on Friday, when it goes public on the Tokyo Stock Exchange's recently launched high-tech Mothers board.
FirstWorld Communications (FWIS Quote - Cramer on FWIS - Stock Picks) gained 8, or 47.1%, to 25 in its trading debut. Lehman Brothers priced 10 million shares at $17 last night, the top of the estimated $15 to $17 range. The company provides network-based Internet, data and communications services. Credit Suisse First Boston priced a 4.5 million-share IPO for iPrint(IPRT Quote - Cramer on IPRT - Stock Picks) at $10 a share. The stock jumped 5 3/4, or 57.5%, to 15 3/4.
Be Free(BFRE Quote - Cramer on BFRE - Stock Picks) slid 12 3/4, or 13.1%, to 84 1/4 after it said it filed for a 4.5 million-share secondary offering. Mechanical Technology (MKTY Quote - Cramer on MKTY - Stock Picks) gained 4, or 6.1%, to 69 3/4 after it set a 3-for-1 stock split. M-Systems(FLSH Quote - Cramer on FLSH - Stock Picks) rose 1 13/16 to 72 7/16 after it priced a 2.45 million-share secondary offering at $68.25 a share. Payless Shoesource(PSS Quote - Cramer on PSS - Stock Picks) jumped 6 5/8, or 15.9%, to 48 3/8 after it said it would self-tender up to 25% of its 29.6 million outstanding shares. Payless said it would buy 7.5 million shares through the offering, which has a set price range between $48 and $53 a share. Separately, Payless said it upped its fiscal 2000 growth estimate to 20% from 15%. TCF Financial (TCB Quote - Cramer on TCB - Stock Picks) slipped 7/16 to 18 5/8 after it said it will buy back 4.1 million, or 5%, of its shares.
