Tech Stocks in Motion

Marconi rises on takeover speculation.
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American depositary receipts of

Marconi

(MRCIY)

were among the best-performing technology stocks Monday after the telecom supplier said it was in preliminary talks over a possible takeover. Marconi, whose shares have been crushed this year after it failed to win a major contract from British Telecom, told the London Stock Exchange that "discussions are at a preliminary stage and there can be no assurance that an offer will ultimately take place." According to the

Financial Times

, one possible suitor is China's Huawei. ADRs rose $1.42, or 14.5%, to $11.17.

JDS Uniphase

(JDSU)

rose 5% after the stock was upgraded to neutral from underweight at J.P. Morgan. According to the brokerage, margins at the optical-equipment supplier could expand in the coming year thanks to a restructuring program and the recent acquisition of Acterna. J.P. Morgan raised its 2006 earnings estimate to break-even on a per-share basis, up from a loss of 2 cents a share. JDS Uniphase added 8 cents to $1.57.

Shares of

Nortel

(NT)

rose 11% after the company posted improved second-quarter results. The telecom-equipment maker earned $45 million, or 1 cent a share, in the second quarter, up from $16 million, or break-even per share, a year ago. Sales rose 10% to $2.86 billion, about $16 million above Wall Street forecasts. Nortel said full-year 2005 sales should be about 10% higher than 2004's, also slightly above estimates. Shares gained 29 cents to $2.94.

The newly public shares of

Worldspace

(WSRP)

continued to take lumps Monday after the

Wall Street Journal

ran an article highlighting the risks section of the company's IPO prospectus. In the document, Worldspace noted that several of its Saudi investors or their charities have been linked in certain forums to terrorism, including three who were named in broad civil actions brought after the Sept. 11 attacks. The company said the men have repeatedly denied the claims. Stll, Worldspace's stock, which lost 11% Friday, was down another 11% to $17.75 Monday.

F5 Networks

(FFIV) - Get Report

rose 3% after the stock was upgraded to buy from hold Monday by Kaufman Brothers. The brokerage said F5's valuation has become reasonable after the shares lost a quarter of their value since reporting third-quarter results. Kaufman's price target is $49. On the Nasdaq, F5 was recently up $1.02 to $38.19.