Company Report: Radio One Soars on Upgrades and RADVision's IPO Blasts Out of the Gate
Tara Murphy
03/14/00 - 06:17 PM EST
Alcoa (AA - Cramer's Take - Stockpickr) dropped 6 13/16, or 10%, to 61 1/4 after it said it will buy Cordant Technologies (CDD - Cramer's Take - Stockpickr) for $57 a share, or about $2.9 billion. The deal includes the assumption of $685 million in debt. Cordant soared 25 1/2, or 86.3%, to 55 1/16. After the acquisition is closed, Alcoa said it wants to buy the remaining 15% interest in Howmet(HWM - Cramer's Take - Stockpickr) that Cordant does not already own. According to Alcoa CEO Alain Belda, Cordant, which already holds an 85% stake in Howmet, launched an $18.75 a share bid for the remaining interest that was rejected by Hormet's special committee. Howmet jumped 1 1/2, or 8.1%, to 20. For more on this story, see the coverage from the TheStreet.com/NYTimes.com's joint newsroom.
Biotech stocks were bludgeoned today after President
Bill Clinton and British Prime Minister
Tony Blair said that the public should have access to raw data on the human genetic code.
Protein Design Labs (PDLI - Cramer's Take - Stockpickr) was pummeled, 61 7/8, or 24.1%, to 195, while
Millennium Pharmaceuticals (MLNM - Cramer's Take - Stockpickr) plummeted 59 1/2, or 25.3%, to 176.
Mergers, acquisitions and joint ventures
Allscripts (MDRX - Cramer's Take - Stockpickr) lost 3 1/8 to 79 7/8 after it said it acquired MasterChart , a private dictation technology developer, for $120 million in stock and $5 million in cash. Digital Island (ISLD - Cramer's Take - Stockpickr) and Federated's (FD - Cramer's Take - Stockpickr) Fingerhut said they entered an online alliance. Under the partnership, Digital Island said it will provide e-commerce technology to Fingerhut. Digital Island was unchanged at 101 15/16, while Federated inched up 11/16 to 35 1/2. Inktomi (INKT - Cramer's Take - Stockpickr) popped 17 1/8, or 9.1%, to 206 1/8 after it said it was expanding its mobile wireless infrastructure, in part through six alliances with technology companies. Inktomi is taking an equity stake in AirFlash for its mobile phone Internet services. It also is allying with France's Cap Gemini Sogeti and Portal Software (PRSF - Cramer's Take - Stockpickr) in a move that will include billing for wireless content. Inktomi is also joining forces with Hewlett-Packard (HWP - Cramer's Take - Stockpickr) for its wireless hardware platform and Sun Microsystems (SUNW - Cramer's Take - Stockpickr) for Sun's wireless infrastructure set. Inktomi is also forging a link with Spyglass (SPYG - Cramer's Take - Stockpickr) for content information and wireless Web firm GWcom. Portal gained 1 7/16 to 77 1/8, Hewlett-Packard sank 6 1/2 to 140, Sun Microsystems dropped 3 1/2 to 87 3/8 and Spyglass climbed 1 to 79 7/16.
Microsoft (MSFT - Cramer's Take - Stockpickr) dropped 2 7/8 to 95 1/8 after it bought an undisclosed stake in Malaysia's Astro television network as part of a deal the two companies said would help shape the development of new multimedia and interactive TV services for Asia. Nortel Networks (NT - Cramer's Take - Stockpickr) gained 2 1/16 to 123 3/4 after it agreed to acquire Xros for $3.25 billion in Nortel stock. Nortel said the acquisition would be slightly dilutive to 2000 earnings, but would add to 2001 EPS. Nortel also said it would issue 27.5 million shares for the deal. For more on this story, see the coverage from the TheStreet.com/NYTimes.com's joint newsroom. Sears (S - Cramer's Take - Stockpickr) gained 11/16 to 28 1/8 and America Online (AOL - Cramer's Take - Stockpickr) gained 3/16 to 61 1/2 after the companies said they formed an alliance that involves marketing each other's goods and services. Under the terms of the agreement, AOL's products and services will be marketed to Sears' customers at its 858 stores nationwide. The venture also includes plans to market and sell high-speed broadband access as the market develops. For more on this story, see the coverage from the TheStreet.com/NYTimes.com's joint newsroom. Bermuda-based insurer White Mountains Insurance (WTM - Cramer's Take - Stockpickr) gained 8 3/4, or 7%, to 134 after it said it would sell its stake in bond insurer Financial Security Assurance (FSA - Cramer's Take - Stockpickr) to banking group Dexia Credit for $620.4 million. Financial Security Assurance jumped 14, or 24.3%, to 71 11/16. For more on this story, see the coverage from the TheStreet.com/NYTimes.com's joint newsroom. Xerox (XRX - Cramer's Take - Stockpickr) slipped 15/16 to 23 9/16 after it said it formed a $2 billion alliance with Sharp and Fuji Xerox to deliver faster, cheaper inkjet printing for millions of small and home offices worldwide, taking aim at Hewlett-Packard. Earnings/revenue reports and previews
(Earnings estimates from First Call; new highs and lows on a closing basis unless otherwise specified. Earnings reported on a diluted basis unless otherwise specified.) AnnTaylor (ANN - Cramer's Take - Stockpickr) added 3 7/16, or 14.6%, to 27 after it posted fourth-quarter earnings of 50 cents a share, in line with the 14-analyst estimate and a penny better than the year-ago results. Avery Dennison(AVY - Cramer's Take - Stockpickr) slipped 7/8 to 58 1/16 despite saying it is on track to meet the first-quarter eight-analyst estimate of 68 cents a share. FactSet Research (FDS - Cramer's Take - Stockpickr) lost 7/8 to 32 1/4 after it reported second-quarter earnings of 18 cents a share, a penny better than the three-analyst estimate and the year-ago 13 cents. Host Marriott (HMT - Cramer's Take - Stockpickr) slipped 1/16 to 8 7/8 despite posting fourth-quarter earnings of 54 cents a share, in line with the 14-analyst estimate and up from the year-ago 49 cents. Martha Stewart (MSO - Cramer's Take - Stockpickr) lost 1/2 to 25 5/8 after it posted fourth-quarter pro forma earnings of 5 cents a share, better than the five-analyst estimate of 1 cent and the year-ago pro forma earnings of 3 cents. Network Appliance (NTAP - Cramer's Take - Stockpickr) shed 31 1/16, or 13.6%, to 197 1/16 despite saying it expects to post revenue of $500 million in the year to April 2000, with turnover doubling to $1 billion in the year to April 2001. Polymer Group (PGI - Cramer's Take - Stockpickr) dropped 3 5/16, or 27.2%, to 8 7/8 after it said it expects first-quarter and full-year earnings to fall short of analyst estimates due to order delays, expenses for two new lines and other factors. Polymer sees earnings of 6 cents to 8 cents a share in the first quarter and full-year earnings of 90 cents to $1.10. The current three-analyst estimate for the first quarter is 19 cents a share, while the four-analyst estimate for 2000 is $1.19. Offerings and stock actions
Adaptive Broadband (ADAP - Cramer's Take - Stockpickr) last night set a 2-for-1 stock split. Adaptive Broadband fell 11 3/4, or 6.6%, to 166 3/8. AT&T (T - Cramer's Take - Stockpickr) shareholders approved a proposal to create a wireless tracking stock. The company said it expects to begin the IPO for the tracking stock this spring. AT&T added 1/4 to 52 7/8. Concord Camera (LENS - Cramer's Take - Stockpickr) gained 1/8 to 52 5/8 after it approved a 2-for-1 stock split. NYFIX (NYFX - Cramer's Take - Stockpickr) mounted 1 7/8 to 60 7/8 after it set a 3-for-2 stock split. Quanta Services (PWR - Cramer's Take - Stockpickr) tacked on 2 11/16, or 5.1%, to 54 15/16 after set a 3-for-2 stock split. Sycamore Networks (SCMR - Cramer's Take - Stockpickr) lost 7 11/16, or 5.1%, to 142 9/16 after pricing a 10.2 million-share offering at $150.25 a share. Analyst actions
Deutsche Banc Alex. Brown analyst Andrew Shore started coverage of major consumer products companies including Revlon (REV - Cramer's Take - Stockpickr), Procter & Gamble (PG - Cramer's Take - Stockpickr), Gillette (G - Cramer's Take - Stockpickr), Colgate-Palmolive (CL - Cramer's Take - Stockpickr), Avon (AVP - Cramer's Take - Stockpickr), Clorox (CLX - Cramer's Take - Stockpickr) and Dial (DL - Cramer's Take - Stockpickr) . Revlon received a market perform rating and a 12-month price target of 11. Revlon fell 1 1/8, or 10.9%, to 9 1/8. Procter & Gamble was rated market perform with a price target of 60. P&G stumbled 1 13/16 to 55 7/16. Gillette was rated strong buy with a price target of 36. Gillette skidded 1 7/8, or 5.8%, to 30. Colgate-Palmolive was rated a buy with a target of 48. Colgate-Palmolive declined 5/16 to 43 1/16. Avon was started as a market perform with a price target of 30. Avon slipped 3/16 to 27 7/8. Clorox was started as a market perform with a target of 33. Clorox shed 3/4 to 29 7/8. Dial was rated a market perform with a price target of 11. Dial mounted 1/2 to 12 1/16.
Hambrecht & Quist started coverage of ASE Test (ASTSF - Cramer's Take - Stockpickr) with a buy rating and a price target of 60. ASE Test bounced 1 15/16, or 6.2%, to 32 15/16. J.P. Morgan started coverage of Avista (AVA - Cramer's Take - Stockpickr) with a buy rating. Avista tumbled 1/16 to 29 15/16. Warburg Dillon Read started coverage of Bausch & Lomb (BOL - Cramer's Take - Stockpickr) with a buy rating and a price target of 75. Bausch & Lomb was off 1/8 to 50 7/8. Wit Soundview started coverage of Brooks Automation (BRKS - Cramer's Take - Stockpickr) with a buy rating and a price target of 100 a share. Brooks Automation gained 1 1/2 to 74 1/2. Merrill Lynch upgraded Caterpillar (CAT - Cramer's Take - Stockpickr) to intermediate-term buy from accumulate. The firm maintained its long-term buy rating on the stock. Caterpillar advanced 3/16 to 35 13/16. Credit Suisse First Boston reinstated Conexant Systems (CNXT - Cramer's Take - Stockpickr) with a strong buy rating and a 12-month target of 140. Conexant Systems gained 1/4 to 84 9/16. Thomas Weisel analyst Raj Gollamudi initiated coverage on Chordiant Software (CHRD - Cramer's Take - Stockpickr) with a buy rating and a 12-month price target of 80. Chordiant Software slid 1 1/8 to 34 1/2. CSFB raised its 2000 earnings estimates on Credence Systems (CMOS - Cramer's Take - Stockpickr) to $3.60 from $3.35. The 12-month price target was raised to 170 from 90. Credence Systems mounted 1/2 to 125 7/16. Lehman Brothers said it cut Great Atlantic & Pacific Tea (GAP - Cramer's Take - Stockpickr) to neutral from buy. Great Atlantic & Pacific Tea declined 2 11/16, or 12.5%, to 18 11/16. Thomas Weisel upgraded HearMe (HEAR - Cramer's Take - Stockpickr) to strong buy. HearMe hopped 6 3/16, or 27.4%, to 28 3/4. Goldman Sachs started coverage of Inforte (INFT - Cramer's Take - Stockpickr) on its recommended list. Inforte skidded 6, or 8.9%, to 61. Merrill Lynch raised its intermediate-term rating on J.P. Morgan (JPM - Cramer's Take - Stockpickr) to accumulate from neutral. J.P. Morgan declined 15/16 to 111 1/16. Goldman Sachs started coverage of Lending Tree (TREE - Cramer's Take - Stockpickr) as market outperformer. Lending Tree advanced 1/2 to 15 3/8. Morgan Stanley cut its rating on Lennox International (LII - Cramer's Take - Stockpickr) to neutral from outperform. Lennox International lost 1/2 to 9 9/16. Merrill started coverage of Primus Telecommunications (PRTL - Cramer's Take - Stockpickr) as a near- and long-term buy. Primus shed 15/16 to 46 1/16. Morgan Stanley Dean Witter started coverage of Providian (PVN - Cramer's Take - Stockpickr) with a strong buy rating and a price target of 110. Providian mounted 1 3/8 to 65 15/16. Wit Soundview started Quest Software (QSFT - Cramer's Take - Stockpickr) at a buy set a price target of 250. Quest Software tumbled 4 5/8 to 172 3/8. CSFB raised Radio One (ROIA - Cramer's Take - Stockpickr) to strong buy from buy and boosted its 12-month price target to 105 from 80. Bear Stearns lifted Radio One to buy from attractive. Radio One jumped 11 13/16, or 18.6%, to 75 1/4. Sabre(TSG - Cramer's Take - Stockpickr) said AMR's(AMR - Cramer's Take - Stockpickr) American Airlines chairman and CEO Donald Carty will vacate his seat on Sabre's board of directors. Earlier today, Morgan Stanley started coverage of Sabre Holdings at outperform with a price target of 56. Sabre hopped 1 7/16 to 47 1/4. Merrill Lynch raised Sandisk (SNDK - Cramer's Take - Stockpickr) to near-term buy from accumulate. Sandisk soared 14 1/2, or 11.6%, to 139 1/2. Donaldson Lufkin & Jenrette analyst Mark Hassenberg raised his rating on Solectron (SLR - Cramer's Take - Stockpickr) to top pick from buy. Solectron was unchanged at 40. Morgan Stanley raised its rating on Sysco (SYY - Cramer's Take - Stockpickr) to strong buy from outperform and set a price target of 38. Sysco was unchanged at 28 3/8. Deutsche Banc Alex. Brown upgraded Tribune (TRB - Cramer's Take - Stockpickr) to strong buy from buy. Tribune tacked on 2 5/8, or 8.5%, to 33 7/16. Deutsche Banc Alex.Brown reinitiated coverage of Webvan(WBVN - Cramer's Take - Stockpickr), cutting its price target to 30 from 50. Webvan lost 3/16 to 10 1/4. Miscellany
Archipelago, an alternative stock trading system, and the Pacific Stock Exchange said they would build a solely electronic national exchange that will ultimately replace the PSE's trading floor. Consolidated Stores (CNS - Cramer's Take - Stockpickr) hopped 15/16, or 8.2%, to 12 1/4 after it said it hired Credit Suisse First Boston to help it pursue strategic options. FedEx (FDX - Cramer's Take - Stockpickr) was off 3/4 to 32 1/16 after it said it launched a new premium home delivery program designed to provide service options, including appointment and evening delivery, which is not currently available to most residential clients. Tyco International (TYC - Cramer's Take - Stockpickr) fell 1 5/8 to 44 3/8 after it said it established a venture capital unit called Tyco Ventures, which will invest in emerging companies and technologies to enhance its core business. The Heard on the Street column in the The Wall Street Journal calls Robertson Stephens analyst Dan Niles the "new Michael Jordan among technology analysts." The story says Niles has developed a strong following among investors after a "year of prescient calls" about Dell (DELL - Cramer's Take - Stockpickr) and others. Dell lifted 1 3/16 to 55 15/16.
