Thursday's Winners & Losers: Unisys, Goodyear, SCM Microsystems, Palm - TheStreet

Updated from 4:30 p.m. EDT

Priceline.com

(PCLN)

rebounded and ended the day off 3 3/8, or 8.4%, to 36 13/16 after it sought to reassure investors about its prospects for revenue growth and future profitability. The company tried to reassure investors by saying it won't be affected by a competing Web site that plans to sell cheap tickets. The stock had initially tumbled 16% after

The Wall Street Journal

reported that

Hotwire.com

, an online venture backed by six major airlines, will allow users to pick a discount fare for their travel route, differing from Priceline's "name your own price" approach. Hotwire.com has received initial funding of $75 million and will be based in San Francisco.

Texas Pacific Group

has taken a majority interest in the new site, while airlines

UAL's

(UAL) - Get Report

United Airlines

,

AMR Corp.'s

(AMR)

American Airlines

,

Northwest Airlines

(NWAC)

,

Continental Airlines

(CAL) - Get Report

,

US Airways

(U) - Get Report

and

America West Holding's

(AWA)

America West Airlines

all hold Minority stakes. Most of the airlines barely budged on the news: UAL edged up 5/8 to 57 3/4; AMR moved down 2.6%, to 26 7/16; Northwest slipped 9/16 to 30 3/4; Continental climbed 1/4 to 47, US Airways inched up 1/32 to 40 and America West fell 13/16 to 16 1/2.

Ericsson

(ERICY)

fell 1 3/8, or 6.9%, to 18 11/16 after it said it would not change its outlook for mobile phone subscriber growth and traffic. The Swedish telecom company was responding to a report in

Dagen Industri

, which quoted CEO Kurt Hellstrom saying the high costs of third-generation mobile phone licenses may slow down industry growth. The article had telecom stocks lower today.

Deutsche Telekom

(DT) - Get Report

shares sank 3% in overseas trading after a newspaper reported that the German firm might launch a $99 billion bid for

Sprint

(FON)

. According to the British newspaper

The Times

, Deutsche will make an offer for the long distance carrier. The U.S. government broke up a $120 billion planned merger with

WorldCom

(WCOM)

. In U.S. trading, Deutsche dropped 5 3/8, or 9%, to 54 6/16, Sprint climbed 1 31/32 to 54 3/4 and WorldCom fell 1/2 to 44 1/16.

According to

The Wall Street Journal

, Sprint doesn't want to throw in the towel on its deal with WorldCom, despite government opposition.

Ford

(F) - Get Report

has been tapped as the sole bidder for

Daewoo Motor

, after offering $6.90 billion for the motor company, according to South Korea's chief financial regulator Lee-Yong-Keun. Ford rose 1 5/16 to 43 1/4.

MasTec

(MTZ) - Get Report

lost 2 1/8, or 5.7%, to 35 7/16 after it said its acquisition of

GMR Telecom

will generate revenue of about $18 million to $20 million, or 2 cents to 3 cents a share to earnings, in 2001. GMR is an e-center engineering and design firm servicing major telecommunications companies and equipment vendors throughout North America. The acquisition is being accounted for as a purchase.

Manufacturing conglomerate

Tyco International

(TYC)

edged up 7/8 to 46 3/8 after it agreed to buy diagnostic equipment maker

Mallinckrodt

(MKG)

in a deal worth about $3.24 billion in stock. Under terms of the deal, shareholders of Mallinckrodt will receive Tyco stock valued at $47.50 for each of their shares. Mallinckrodt moved down 1 1/2 to 43 1/2.

TheStreet.com/NYTimes.com

joint newsroom wrote about the deal in an earlier

story.

Nortel Networks

(NT)

moved down 7/8 to 68 13/64 and

Juniper Networks

(JNPR) - Get Report

jumped 11 1/2, or 8.4%, to 147 15/16 after the companies agreed to a marketing deal. According to the terms, Nortel would sell Juniper's M-series routers to its own customers. The alliance, which gives Nortel further access to the optical Internet equipment market, would work to establish interoperability between optical networking and core routing technologies.

Tumbleweed Communications

(TMWD)

slipped 9/16 to 49 15/16 after it said it will acquire

Interface Systems

(INTF) - Get Report

in a stock deal worth about $63 million.

Tumbleweed said Interface shareholders will receive 0.264 Tumbleweed shares for each Interface share. The deal calls for Interface to become a wholly owned unit of Tumbleweed, and for the divestiture of Interface's

Cleo Solutions Group

unit. The boards of both companies approved the transaction, which is expected to close in the third quarter.

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AGL Resources

(ATG)

said its third-quarter earnings would top the 10-analyst estimate of 21 cents a share. AGL Resources popped 1 1/16, or 6.6%, to 17.

ATI

(ATYT)

reported a third-quarter loss of 10 cents a share, excluding charges. The eight-analyst estimate was for 6 cents a share, which was down from the year-ago earnings of 17 cents a share, which does not include various charges. ATI declined 3/16 to 8 1/2.

Conagra

(CAG) - Get Report

posted fourth-quarter earnings of 46 cents a share, in line with the 10-analyst estimate and up from the year-ago 41 cent profit. Conagra stumbled 3/16 to 19 5/8.

CKE Restaurants

(CKR)

stumbled 1/8 to 3 1/16 after it reported a first-quarter loss of 5 cents a share, wider than the five-analyst estimate of a 3-cent loss and down from the year-ago profit of 37 cents a share. The restaurant chain also said it sees fiscal 2001 earnings between 19 cents to 21 cents a share, topping the seven-analyst estimate of 18 cents.

DuPont

(DD) - Get Report

finished down 1 9/32 to 44 1/2 after it said it will take a one-time charge of six cents a share against second-quarter earnings in preparation for litigation concerning its Benlate fungicide. A 14-analyst earnings estimate was 88 cents a share for the second quarter.

As previously reported, a Texas court jury awarded $100.3 million to two melon growers who say DuPont's fungicide failed to prevent gummy-stem blight from ravaging their crops in 1997. In a press release, DuPont said that based on recent court rulings, the plaintiff's attorneys are seeking to reopen a number of previously settled cases related to Benlate.

Fritz

(FRTZ)

skidded 1/16 to 10 3/8 after it reported fourth-quarter earnings of 10 cents a share, in line with the six-analyst estimate and up from the year-ago 3 cents a share. For the year, the company reported earnings of 47 cents, also in line with the estimate and up from the year-ago 37 cents a share.

Goodyear

(GT) - Get Report

finished down 2 1/16, or 8.8%, to 21 1/4 after it warned investors that its second-quarter earnings would be flat from its year-ago report. The eight-analyst estimate expects the company to post a 58 cent profit. Goodyear blamed the shortfall on softer volumes, weak currency and increased energy costs.

Handheld computer-maker

Palm

(PALM)

hopped 3 5/16, or 12.5%, to 29 11/16 after it posted fourth-quarter earnings of 3 cents a share, beating the eight-analyst

First Call/Thomson Financial

estimate and the year-ago earnings of 1 cent. Palm's net income jumped to $16.3 million in the latest quarter, from $6.8 million in the prior quarter. The stronger profit was due in part to a doubling of revenue, to $350.2 million from $174.3 million in the year-ago period.

TheStreet.com/NYTimes.com

joint newsroom wrote about Palm's results in an earlier

story.

Potlatch

(PCH) - Get Report

, a forest products company, said it will cut 260 salaried employees, which it expects will result in a pretax second-quarter charge of $26 million for workforce reduction costs. Also, the staff cut is anticipated to yield an annual pretax savings of $21 million.

A three-analyst survey estimated second-quarter earnings of 30 cents a share. The company's year-ago earnings were 33 cents a share. Potlatch tacked on 7/16 to 34 5/16.

SCM Microsystems

(SCMM)

plummeted 35 11/16, or 39.9%, to 53 5/8 after it warned investors that it expects second-quarter sales in some key products to be lower. According to the company, the quarter's revenue and margins were hurt by a decline in digital media readers and PC security sales. The second-quarter two-analyst estimate sees the German smartcard systems maker posting a 22-cent profit.

Supervalu

(SVU)

, which reported second-quarter earnings of 46 cents, beat a five-analyst estimate by a penny, said its directors approved an increase in the annual cash dividend rate to 55 cents a share from 54 cents. Supervalu climbed 1 1/4, or 6.7%, to 19 1/2.

Unisys

(UIS) - Get Report

cautioned investors that its second-quarter earnings would miss the 10-analyst estimate of 37 cents a share. According to the computer services supplier, second-quarter earnings will be between 18 cents and 20 cents a share, while revenue will come in between $1.62 billion and $1.65 billion, down 13% to 15% from the year-ago report. Unisys blamed the shortfall on soft sales in the government and financial sectors and currency fluctuations.

Salomon Smith Barney cut the company's rating to outperform from buy and lowered second-quarter earnings to 18 cents from 37 cents and its price target to $22 from $45. Unisys slipped 8 9/16, or 37%, to 14 9/16.

Ventana Medical Systems

(VMSI)

stumbled 3 3/4, or 13.1%, to 24 3/4 after it cautioned investors that it would report second-quarter earnings below the seven-analyst estimate of 8 cents a share. Ventana also said that its second-quarter revenue would come in between $17.5 million to $18.5 million, down from the initial estimates of $20 million to $21 million.

Ventana Medical was lowered to a near-term neutral from accumulate at

Merrill Lynch

.

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PaineWebber

added

HCA-Healthcare

(HCA) - Get Report

and

El Paso Energy

(EPG)

to its

Highlighted Stocks List

. The news boosted HCA 2 9/16, or 8.5%, to 32 7/16 and El Paso Energy 2 23/32, or 5.5%, to 51 7/8.

Salomon Smith Barney

analyst Richard Gardner cut his near-term price target and rating on

Compaq

(CPQ)

, citing concerns about second-quarter inventories. Gardner said he believes Compaq's channel inventories are the highest among PC vendors and said inventory build-up may have a negative near-term impact on PC margins. The stock was cut to neutral from buy. It plummeted 3 3/8, or 11.8%, to 25 1/8.

Upgrades

AudioCodes

(AUDC) - Get Report

: ADDED to "Recommended for Purchase List" at

Goldman Sachs

. AudioCodes rose 7 7/16, or 6.7%, to 118 1/2.

Despite being ADDED to the Focus List at

Credit Suisse First Boston

with a price target of 93,

Bell Atlantic

(BEL)

fell 1 3/32 to 51 1/2.

Eli Lilly

(LLY) - Get Report

: UP to buy from market performer at

J.P. Morgan

. The stock jumped 14 1/2, or 16.6%, to 101 11/16.

Sagent Technology

(SGNT)

rocketed 56.4%, or 4 15/16, to 13 11/16, after it was raised to a buy from market performer at

Chase Hambrecht & Quist

; price target of 32.

Downgrades

Alaska Air Group

(ALK) - Get Report

dropped 1 5/8, or 5.8%, to 26 9/16 after it was lowered DOWN to market perform from buy at

Deutsche Banc Alex. Brown

.

Coca-Cola

(KO) - Get Report

: DOWN to hold from strong buy at

UBS Warburg

; price target UP to 66 from 61. The sodamaker tumbled 31/32 to 59 1/16.

CYTYC

(CYTC)

dropped 11, or 19.3%, to 45 7/8, after it was cut DOWN to buy from strong buy at

Banc of America

.

Del Monte

(DLM)

: DOWN to market performer from recommended, estimated 2000 earnings per share DOWN to $0.96 from $1.08 and estimated 2001 EPS DOWN to $1.10 to $1.20, all at Goldman Sachs. The stock fell 1 5/16, or 15.7%, to 7 1/16.

ECI Telecom

(ECIL)

was 2 7/16, or 6.6%, lower to 34 3/4, after its Goldman Sachs lowered the company's fiscal 2000 EPS DOWN to $1.36 a share from $1.58.

Fresh Del Monte Produce

(FDP) - Get Report

bumped up 9/16, or 8.6%, to 7 1/8, even though it was cut DOWN to market perform from buy at

Donaldson Lufkin & Jenerette

.

Mack-Cali Realty

(CLI) - Get Report

: DOWN to market performer from market outperformer at Goldman Sachs. It finished the day up 13/16 to 25 13/16.

Stoneridge

(SRI) - Get Report

DOWN to market perform from buy at

Donaldson, Lufkin & Jenrette

; fiscal 2000 EPS down to $1.83 a share from $2.14; fiscal 2001 EPS down to $1.82 a share from $2.34. Stoneridge sunk 1 3/8, or 13.3%, to 9.

Synopsis Systems

(SNPS) - Get Report

: DOWN to buy from strong buy at Credit Suisse First Boston. Synopsis was off 5/8 to 35 1/4.

Ventana Medical

(VMSI)

: DOWN to near-term neutral from accumulate at

Merrill Lynch

. Ventana was down 3 3/4, or 13.2%, to 24 3/4.

Initiations

Cardinal Health

(CAH) - Get Report

: NEW buy at Deutsche Banc Alex. Brown. Cardinal slid down 21/32 to 70 5/16.

Parexel International

(PRXL)

crept up 5/8, or 6.7%, to 9 15/16, after it was named a NEW market performer at Goldman Sachs.

Sequenom

(SQNM)

got a 3 3/8, or 7.8%, lift to 46 1/2 after it was started as a strong buy at UBS Warburg.

VA Linux Systems

(LNUX)

NEW buy at CSFB; price target 53. The stock edged up 1 5/8 to 44 1/2.

Group Moves

Merrill Lynch rolled out coverage of several stocks in the house wares and consumer durable sector:

    Applica (APN) , down 11/16, or 5.6%, to 11 9/16, intermediate-term neutral, long-term accumulate
  • Fortune Brands (FO) , up 1/16 to 23, intermediate-term accumulate, long-term buy.
  • Libbey (LBY) - Get Report, up 3/4 to 30 3/4, intermediate-term neutral, long-term buy.
  • Maytag (MYG) , up 9/32 to 38, intermediate-term neutral, long-term accumulate.
  • Newell Rubbermaid (NWL) - Get Report, up 9/16 to 25 13/16, intermediate-term accumulate, long-term buy.
  • Scotts Company (SMG) - Get Report, up 1 5/16 to 36 15/16, intermediate-term neutral, long-term buy.
  • Sunbeam (SOC) , up 5/16, or 9.8%, to 3 1/2, intermediate-term neutral, long-term accumulate.
  • Whirlpool (WHR) - Get Report, down 15/32 to 50 7/8, intermediate and long-term accumulate.

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Accord Networks

(ACCD)

, an Israel-based videoconferencing systems' maker, fell 2 1/16, or 18.8%, to 8 15/16 in a disappointing trading debut. The initial public offering of 5 million shares was priced at $11 each. The offering had a price range of $10 to $15 a share. Managing underwriters for the offering were

CIBC World Markets

,

Dain Rauscher Wessels

and

US Bancorp Piper Jaffray

.

IMS Health

(RX)

edged up 1/4 to 15 11/16 after it re-initiated its 16-million-share buyback program its board authorized in October 1999.

The company, which provides information services to pharmaceutical and healthcare industries, did not disclose whether any shares were purchased previously under the plan.

United Security Bancorp

(USBN)

added 1/4 to 9 5/8 after it set a shares repurchasing program for 10% of its common shares.

Credit Suisse First Boston

priced a 3.5 million-share IPO for

Virage

(VRGE)

mid-range at $11 a share. Virage jumped 5 7/8, or 53.4%, to 16 7/8.

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Merck

(MRK) - Get Report

moved up 7/64 to 74 7/64 asked the

Food & Drug Administration

to approve its arthritis drug

Vioxx

for use in patients with rheumatoid arthritis. Vioxx is currently approved for acute pain and osteoarthritis, but the company wants approval for patients with a less common form of arthritis in which the immune system attacks the joints.

Oxford Health Plans

(OXHP)

was unchanged at 24 after it said it would end its Oxford Medicare Advantage plan in eight New Jersey counties beginning next year. The insurer blamed U.S. Medicare for not adequately providing reimbursements to cover increasing health care costs. Oxford's announcement comes after U.S. insurance company

Aetna

(AET)

said it would no longer offer Medicare+Choice HMO plans in certain markets. Aetna added 1 147/256 to 64 9/16. The changes would affect about 355, 000 members.

Additionally,

Foundation Health

(FHS)

rose 5/16 to 14 5/16 after it said it will leave areas representing about 7%, or about 19,000, of its almost 259,000 Medicare+Choice HMO members.

Conseco

(CNC) - Get Report

climbed 1 5/16, or 16.9%, to 9 1/16 after it officially named Gary Wendt its chairman and chief executive. Wednesday,

The Wall Street Journal

reported that the company planned to do so, but Conseco would not confirm the report. Wendt is the former head of

General Electric's

(GE) - Get Report

GE Capital

.

Drugmaker

Eli Lilly

(LLY) - Get Report

popped 14 13/16, or 17%, to 102 after it said it plans to market its recombinant human-activated protein C, which will be called Zovant, if it receives regulatory approval. The company was able to stop enrollment in a trial of the protein, which is used in treating severe sepsis, after the trial got a favorable recommendation by an independent data and safety monitoring board that found positive results based on 1,520 patients.

Sepsis is a disease affecting more than 1.5 million worldwide that is characterized by an overwhelming systemic response to infection that can rapidly lead to organ failure and ultimately death.

Eli Lilly's rating was raised to buy from market performer at

J.P. Morgan

.

InterDigital

(IDCC) - Get Report

lost 29/64 to 16 5/8 after it said it will take a second-quarter charge of 55 cents a share on an accounting change.

Kent Electronics

(KNT)

lost 7/16 to 29 15/16 after it said it has tapped its president, Larry Olson, as its new CEO.

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By the Numbers

The data on NYSE and Nasdaq percent winners and losers are filtered to exclude stocks whose previous day's volume was less than 25,000 shares; whose last price was less than 5; and whose net change was less than 1/2.

Dow point gain and loss data are based on New York closing prices and do not reflect late composite trading.

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