Publish date:

Company Report: Radio One Soars on Upgrades and RADVision's IPO Blasts Out of the Gate

Alcoa (AA) - Get Report dropped 6 13/16, or 10%, to 61 1/4 after it said it will buy Cordant Technologies (CDD) 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



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'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) - Get Report

was pummeled, 61 7/8, or 24.1%, to 195, while

Millennium Pharmaceuticals


plummeted 59 1/2, or 25.3%, to 176.

Mergers, acquisitions and joint ventures


(MDRX) - Get Report

lost 3 1/8 to 79 7/8 after it said it acquired


, a private dictation technology developer, for $120 million in stock and $5 million in cash.

Digital Island





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.



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


for its mobile phone Internet services. It also is allying with France's

Cap Gemini Sogeti


Portal Software


in a move that will include billing for wireless content. Inktomi is also joining forces with



for its wireless hardware platform and

Sun Microsystems

(SUNW) - Get Report

for Sun's wireless infrastructure set. Inktomi is also forging a link with


(SPYG) - Get Report

for content information and wireless Web firm


. 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.


(MSFT) - Get Report

dropped 2 7/8 to 95 1/8 after it bought an undisclosed stake in Malaysia's


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


gained 2 1/16 to 123 3/4 after it agreed to acquire


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's

joint newsroom.


(S) - Get Report

gained 11/16 to 28 1/8 and

America Online


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's

joint newsroom.

Bermuda-based insurer

White Mountains Insurance

(WTM) - Get Report

gained 8 3/4, or 7%, to 134 after it said it would sell its stake in bond insurer

Financial Security Assurance


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's

joint newsroom.


(XRX) - Get Report

slipped 15/16 to 23 9/16 after it said it formed a $2 billion alliance with


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.




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) - Get Report

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) - Get Report

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


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


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) - Get Report

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


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) - Get Report

last night set a 2-for-1 stock split. Adaptive Broadband fell 11 3/4, or 6.6%, to 166 3/8.


(T) - Get Report

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


gained 1/8 to 52 5/8 after it approved a 2-for-1 stock split.



mounted 1 7/8 to 60 7/8 after it set a 3-for-2 stock split.

Quanta Services

(PWR) - Get Report

tacked on 2 11/16, or 5.1%, to 54 15/16 after set a 3-for-2 stock split.

Sycamore Networks


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


(REV) - Get Report


Procter & Gamble

(PG) - Get Report



(G) - Get Report



(CL) - Get Report


TST Recommends


(AVP) - Get Report



(CLX) - Get Report



(DL) - Get Report


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


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


(AVA) - Get Report

with a buy rating. Avista tumbled 1/16 to 29 15/16.

Warburg Dillon Read

started coverage of

Bausch & Lomb


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) - Get Report

with a buy rating and a price target of 100 a share. Brooks Automation gained 1 1/2 to 74 1/2.

Merrill Lynch



(CAT) - Get Report

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


Conexant Systems

(CNXT) - Get Report

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


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


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


to neutral from buy. Great Atlantic & Pacific Tea declined 2 11/16, or 12.5%, to 18 11/16.

Thomas Weisel upgraded


(HEAR) - Get Report

to strong buy. HearMe hopped 6 3/16, or 27.4%, to 28 3/4.

Goldman Sachs

started coverage of



on its recommended list. Inforte skidded 6, or 8.9%, to 61.

Merrill Lynch raised its intermediate-term rating on

J.P. Morgan

(JPM) - Get Report

to accumulate from neutral. J.P. Morgan declined 15/16 to 111 1/16.

Goldman Sachs started coverage of

Lending Tree

(TREE) - Get Report

as market outperformer. Lending Tree advanced 1/2 to 15 3/8.

Morgan Stanley cut its rating on

Lennox International

(LII) - Get Report

to neutral from outperform. Lennox International lost 1/2 to 9 9/16.

Merrill started coverage of

Primus Telecommunications


as a near- and long-term buy. Primus shed 15/16 to 46 1/16.

Morgan Stanley Dean Witter

started coverage of



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


at a buy set a price target of 250. Quest Software tumbled 4 5/8 to 172 3/8.

CSFB raised

Radio One


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.


(TSG) - Get Report




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



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



to top pick from buy. Solectron was unchanged at 40.

Morgan Stanley raised its rating on


(SYY) - Get Report

to strong buy from outperform and set a price target of 38. Sysco was unchanged at 28 3/8.

Deutsche Banc Alex. Brown




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



, cutting its price target to 30 from 50. Webvan lost 3/16 to 10 1/4.



, 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) - Get Report

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.


(FDX) - Get Report

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


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


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) - Get Report

and others. Dell lifted 1 3/16 to 55 15/16.