Tech Stocks in Motion

Sandisk plunges after Micron and Intel announce a flash memory joint venture.
Author:
Publish date:

Shares of

Micron Technology

(MU) - Get Report

were among the most actively traded technology stocks Monday, after the chip company announced a pact with

Intel

(INTC) - Get Report

to form a flash memory joint venture.

The two companies' venture -- to be called IM Flash Technologies -- will make NAND flash memory for use in consumer electronics, removable storage and handheld communications devices. The companies will each contribute about $1.2 billion to the new company. In addition, Intel and Micron signed supply agreements with

Apple

(AAPL) - Get Report

to provide NAND chips, which are the preferred storage medium for digital music players. Apple will prepay $250 million each to Intel and Micron as part of the deal. Micron shares recently changed hands at $14.10, down 8 cents, while Intel fell 1 cent to $25.29.

Shares of

Sandisk

(SNDK)

, meanwhile, plunged 15% on news of the Intel and Micron agreement. Sandisk makes flash memory cards used in consumer electronics such as digital cameras and digital music players, and thus faces new competition from the Intel and Micron venture. Sandisk shares were down $8.48 to $47.72.

M-Systems

(FLSH)

, a maker of flash-based storage systems, fell $3.07, or 9.6%, to $29.09.

Alamosa Holdings

(APCS)

shot up 13% after

Sprint Nextel

(S) - Get Report

agreed to buy the wireless affiliate for $3.4 billion. Sprint will pay $18.75 a share for Alamosa. The two companies had been at odds after Alamosa filed a lawsuit relating to Sprint's acquisition of Nextel and certain exclusivity covenants with Alamosa subsidiary AirGate. Alamosa shares gained $2.09 to $18.35. Shares of

Ubiquitel

(UPCS)

, another Sprint affiliate, rose 9%, or 83 cents, to $9.68.

Shares

Napster

(NAPS)

jumped 9% after the launch of a beta version of its music service integrated with

XM Satellite Radio

(XMSR)

. The service allows customers to access and download music heard on XM from Napster. The XM + Napster services also lets XM subscribers create playlists with music tracks from their digital music collection. Napster shares were up 26 cents to $3.32, while XM shares were flat at $30.75.

Catuity

(CTTYC)

shares rose 21% after the software developer said it has fully complied with all of Nasdaq's requirements for continued listing on the market. Catuity had been in violation of Nasdaq's requirement for shareholders equity of at least $2.5 million; the company's most recent quarterly report showed shareholders equity of $9.14 million. The fifth character "C" will be dropped from Catuity's trading symbol Tuesday. Catuity shares jumped $1.42 to $8.07.

Other technology companies trading actively Monday included

(MSFT) - Get Report

, down 5 cents to $28.02;

(ORCL) - Get Report

, down 23 cents to $12.39;

(SYMC) - Get Report

, down 78 cents to $17.65;

Sun Microsystems

(SUNW) - Get Report

, unchanged at $3.75;

(EBAY) - Get Report

, up 98 cents to $45.65;

Dell

(DELL) - Get Report

, up 15 cents to $30;

Applied Materials

(AMAT) - Get Report

, up 16 cents to $17.40; and

Tivo

(TIVO) - Get Report

, up 19 cents to $5.46.