Company Report: Safeguard Scientific, KPM Telecom Among Gainers - TheStreet

Company Report: Safeguard Scientific, KPM Telecom Among Gainers

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Safeguard Scientifics

(SFE) - Get Report

jumped higher after positive analyst news, rising 8 3/4, or 17.3%, to 59 1/4.

Prudential Securities

raised its rating to a strong buy, while

Lehman Brothers

initiated coverage with a buy rating and set a price target of 100.

KPN Telecom

(KPN)

popped 10 5/16, or 9.8%, to 115 5/16 after it said its shareholders would vote to set a 2-for-1 stock split on April 27.

Mergers, acquisitions and joint ventures

Warnaco Group

(WAC)

has made a second bid for privately held fashion house

Calvin Klein

,

The Wall Street Journal

reported. Warnaco made another bid for the company in the wake of the failure of merger talks between Calvin Klein and

Tommy Hilfiger

(TOM)

, the newspaper reported, citing people familiar with the situation. The new bid is said to be under the $1 billion asking price and is subject to due diligence, the newspaper reported. Warnaco slipped 1/16 to 10 13/16 and Tommy Hilfiger shed 4 7/16, or 32.1%, to 9 3/8 on the news below.

Separately, Tommy Hilfiger said it anticipates overall revenue for fiscal 2001 will be unchanged to 5% lower as compared with fiscal 2000. It warned that it expects net income for the year ending March 31, 2001, to be 30% to 40% lower than fiscal 2000, excluding special charges to be taken in the fourth quarter of fiscal 2000. The company expects fourth-quarter earnings, before special charges, to come in toward the lower end of the previously stated range of 35 cents to 45 cents. The 15-analyst estimate calls for the company to earn 39 cents a share in the fourth-quarter fiscal 2000 period.

Tommy Hilfiger also said its board had approved a stock-buyback program of up to $150 million.

Merrill Lynch downgraded Tommy Hilfiger shares to neutral from accumulate and Salomon Smith Barney also cut the shares to neutral from outperform, while

ING Barings

slashed its rating to hold from buy.

The Canadian government said it would invest $23.3 million in

Research in Motion

(RIMM)

for a wireless communications research and development project. Shares popped 10 1/16, or 11.2%, to 99 9/16.

Dreyer's

(DRYR)

upped its stock offer for ice cream competitor

Ben & Jerry's Homemade

(BJICA)

to roughly $35 to $38 a share, reported

The Wall Street Journal

. Dreyer's dropped 1 3/16 to 24 15/16 and Ben & Jerry's gained 1 9/16 to 34 1/8.

VF

(VFC) - Get Report

lost 15/16 to 24 1/8 after it said it would buy troubled outdoor apparel retailer

North Face

(TNFI)

for $2 a share in cash in a deal valued at about $25.4 million. North Face inched up 23/32, of 59%, to 1 15/16.

Earnings/revenue reports and previews

(

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.

)

Healtheon/WebMD

(HLTH)

gained 7 1/2, or 34.6%, to 29 3/16 after it said it expects first-quarter revenues to exceed $62 million and it expects to post a loss before non-cash charges of less than $90 million. The company said it expects to announce its first-quarter results late this month or in early May.

Separately, two directors of Healtheon/WebMD, Jim Clark and John Doerr, have asked the company to grant an exception to its trading window restrictions so they can buy up stock -- Clark wants to buy up to $200 million, while Doerr intends to invest up to $20 million.

Activision

(ATVI) - Get Report

, a video-game maker, dropped 3, or 27.1%, to 8 1/16 after it said it is taking a pretax charge of $66 million as part of a restructuring. The company expects the actions will result in pretax savings of $11 million in fiscal year 2001.

Cerner

(CERN) - Get Report

climbed 7, or 28%, to 32 after it said it expects to post first-quarter earnings of roughly 7 cents a share, which would beat the 18-analyst estimate of 3 cents.

JDA Software

(JDAS)

gained 2 13/16, or 19.2%, to 17 7/16 after it announced that it expects first-quarter earnings to beat analysts' expectations. The three-analyst estimate calls for JDA Software to come in at 3 cents a share. Based on preliminary figures, JDA said it expects software license revenue to be approximately $15 million.

Metro Information Service

(MISI)

lost 1/2 to 14 1/4 after it said it expects quarterly earnings of between 7 cents and 9 cents a share, and first-quarter revenue at about $80 million.

MBNA

(KRB)

, a bank holding company for MBNA America Bank, climbed 21.4% to 26 11/16 after it said it foresees first-quarter earnings of 28 cents a share, in line with the 23-analyst estimate and up from the year-ago 22 cents.

Starbucks

(SBUX) - Get Report

gained 2 1/2, or 6.7%, to 40 1/16 after it said Howard Schultz will

step down as CEO to take a more visionary role at the company, focusing on long-term strategy. Schultz, whose resignation will be effective June 1, will stay on as chairman of the Seattle-based company and will assume the newly created title of chief global strategist. He will be succeeded by COO and president Orin Smith.

The company also reported that March

same-store sales rose 10%.

Offerings and stock actions

ASM International

(ASMI)

, the Dutch semiconductor equipment maker, added 3 3/4, or 12.9%, to 32 3/4 after it set the price for its offer of 5 million shares at $29 a share. The company is offering 3.5 million shares and

Applied Materials

(AMAT) - Get Report

-- as the selling shareholder -- is offering 1.5 million. Applied Materials popped 8 3/16, or 7.7%, to 114 7/8.

Finisar

(FNSR) - Get Report

gained 2 15/16 to 103 3/8 after it upped the size of its secondary offering to 7.7 million shares from 7 million. The offering is priced at $100 a share.

MCK Communications

(MCKC)

dropped 2 15/16, or 5.5%, to 39 11/16 after it said its 2.75 million-share offering was priced at $40 a share.

Analyst actions

This morning,

Donaldson Lufkin & Jenrette

upgraded athletic shoe and clothing giant

Nike

(NKE) - Get Report

to buy from market perform. Nike added 1 3/8 to 42 15/16.

Allied Waste

(AW)

: DOWN to neutral from buy at

PaineWebber

. Allied Waste declined 13/16, or 10.8%, to 6 11/16.

ATMI

(ATMI)

: NEW market outperform at

Goldman Sachs

. ATMI popped 3 1/8, or 6.9%, to 48 1/8.

Bowater

(BOW)

: UP to buy from neutral at

Bears Stearns

. Bowater lost 7/16 to 49 1/16.

Cognos

(COGN)

: price target UP to 100 from 70 at Prudential Securities. Cognos gained 11 1/8, or 16.9%, to 76 3/4.

DuPont

(DD) - Get Report

: UP to buy from neutral at PaineWebber; price target of 70. DuPont slipped 1 3/8 to 55.

This morning,

Merrill Lynch

analyst David Anders initiated or reinstated coverage of the gaming industry on several stocks including:

Argosy Gaming

(AGY)

at accumulate with a 19 price target,

Aztar

(AZR)

INITIATED at accumulate,

Gtech

(GTK)

at accumulate,

Harrah's

(HET)

at accumulate and a 26 price target,

International Game Technology

(IGT) - Get Report

at accumulate,

Mandalay

(MBG)

at accumulate with a 23 price target,

MGM Grand

(MGG)

at buy with a 32 price target and

Station Casinos

(STN) - Get Report

at accumulate and a 28 price target.

Argosy Gaming tacked on 5/16 to 14 7/8 and Aztar advanced 3/8 to 9 15/16, while Gtech lifted 9/16 to 19 11/16. Harrah's declined 1/16 to 19 and International Game Technology popped 1 to 23 7/8, while Mandalay bounced 3/16 to 17 7/16. MGM Grand jumped 1 11/16, or 6.6%, to 27 1/16 and Station Casinos added 1 3/4, or 7.3%, to 25 1/2.

Global Crossing

(GBLX)

: NEW outperform at Lehman Brothers. Global Crossing slid 1/4 to 37 3/16.

Energen

(EGN)

: UP to buy from attractive at

PaineWebber

. Energen added 1/8 to 17 7/8.

HomeGrocer.com

(HOMG)

: NEW outperform at

Morgan Stanley Dean Witter

. HomeGrocer.com climbed 1/8 to 8 1/2.

Jupiter

(JPTR)

: price target UP to 49 from 45 at Donaldson Lufkin & Jenrette. Jupiter bounced 3/8 to 33 3/16.

Matrix One

(MONE)

: rating UP to "recommended for purchase" list from outperform at Goldman Sachs. Matrix One advanced 8 1/4, or 31.1%, to 34 3/4.

McLeodUSA

(MCLD)

: NEW buy at

Credit Suisse First Boston

; price target of 116. McLeodUSA jumped 7 15/16, or 11%, to 80.

Midway Games

(MWY)

: DOWN to hold from buy at

ING Barings

. Midway Games slipped 5 13/16, or 40.7%, to 8 7/16.

Ribozyme Pharmaceuticals

(RZYM)

: NEW buy at

Chase H&Q

. Ribozyme Pharmaceuticals advanced 1 15/16, or 9.7%, to 21 13/16.

SDL

(SDLI)

: NEW buy at

Thomas Weisel Partners

by analyst Max Schuetz. SDL added 14 3/8, or 8.5%, to 183.

Tosco

(TOS)

: UP to buy from hold at

ABN Amro

; price target: 40. Tosco gained 1 1/2, or 5%, to 31.

Viatel

(VYTL)

: NEW strong buy at ING Barings; pride target: 90. Viatel tacked on 1 9/16 to 42 13/16.

Miscellany

A Florida jury found

Philip Morris

(MO) - Get Report

and other tobacco giants guilty of injuring three plaintiffs in the class-action

Engle

lawsuit, ordering the companies to pay $12.7 in damages, slightly lower than the $13 million the plaintiffs were seeking.

The jury will soon evaluate punitive damages in the case that could hit tobacco companies up for $300 billion to cover all of Florida's ailing smokers. In 1999, the same jury decided that the tobacco companies products were defective, causing smokers to become ill. Philip Morris was unchanged at 22 15/16.

The Inside Wall Street column this week in

Business Week

written by Gene Marcial says that

Hughes Electronics

(GMH)

, the satellite company, 69% of whose stock is owned by

General Motors

(GM) - Get Report

, is a buyout target. Hughes Electronics declined 1/16 to 120 15/16 and General Motors slid 1/16 to 84 5/8.

The column also offers up bullish pieces on

Carolina Power & Light

(CPL) - Get Report

and

CVS

(CVS) - Get Report

, the pharmacy chain. Carolina Power & Light slid 5/16 to 32 1/8 and CVS was unchanged at 38 13/16.

Corus

(CORS)

, the bank holding company, said it entered a settlement with the

Justice Department

over student loans. Corus bounced 2 1/4, or 9.3%, to 26 1/4.

Kmart

(KM)

, the discount retailing chain, gained 1/4 to 9 3/8 after it said it is voluntarily recalling about 280,000 "Little Ones" children's decorative lamps, which it said can short-circuit and pose a fire hazard.

The Heard on the Street column in the

Wall Street Journal

discusses how investors can get stung by rookie analysts' inflated recommendations, such as

SG Cowen

Thomas Bock's strong buy recommendation and price target for

QXL.com

(QXLC)

yesterday. QXL.com fell 6, or 11.6%, to 45 15/16.

Prosecutors in the federal antitrust probe of auction house giants

Sotheby's

(BID) - Get Report

and

Christie's

have evidence that a plan to restrict competition by fixing commissions charged to buyers was set in motion by the chairmen of the two firms at the time,

The New York Times

reported, citing people involved in the probe. The two chairmen, Sotheby's A. Alfred Taubman and Christie's Sir Anthony Tennant, talked about the arrangement in person and then instructed their chief executives to carry out the plan, according to the

Times

story. Sotheby's added 1/4 to 17 7/16.