TheStreet Notes: A Daily Briefing of Wall Street Research and Analyst Actions

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Change In Ratings | Stock Comments / EPS Changes | Strategy Calls / Market Calls | Economics | Meetings | View Archived StreetNotes

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AK Steel Holding Corp. (AKS / NYSE)
Goldman Sachs
Upgrading to Trading Buy from Outperform, target to $17 from $12. Tightening steel market, prices expected to rise.

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AK Steel Holding Corp. (AKS / NYSE)
Prudential Securities
Downgrading to Hold from Buy and price target from $14 to $11 because the upside potential from industrywide restructurings or mergers appears less than initially expected, and re-entries cloud earnings rebound outlooks.

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Alltel Corporation (AT / NYSE)
Morgan Stanley Co.
Initiating Coverage with an Outperform rating and a $75 price target. AT is a good opportunity for investors to gain meaningful wireless exposure.

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American Express Company (AXP / NYSE)
Salomon Smith Barney
Initiating coverage with a Buy rating and $42 target. Aggressive cost cutting. Management very conservative outlook. Recovery coming.

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BEI Technologies (BEIQ / Nasdaq)
ABN Amro
Downgrading from ADD to HOLD and lowering our fiscal 2002EPS estimate from $0.70 to $0.55 and fiscal 2003 from $1.50 to $1.40 in light of their short-term negative outlook and uncertainty on the timing of an economic recovery.

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Bristol-Myers Squibb Co. (BMY / NYSE)
Lehman Bros
Lowering 2002 EPS estimates to $2.30 in light of yesterday's BMY announcement of lowered 2002 guidance and imminent loss of exclusivity of Glucophage IR.

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Bristol-Myers Squibb Co. (BMY / NYSE)
NEWS
Reconfirmed 2001 EPS will increase 12% to $2.41, in-line with consensus forecasts. For 2002, however, the company is forecasting earnings of between $2.25 to $2.35/share, well below the Street forecast of $2.57/share. The company attributes the shortfall to expected declines in sales of its diabetes treatment, Glucophage IR, on which the patent has expired.

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Bristol-Myers Squibb Co. (BMY / NYSE)
Goldman Sachs
Upgrade to Trading Buy from Outperform. Guiding 2002 below concensus. Recommend buying at $46. Target $57

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Bristol-Myers Squibb Co. (BMY / NYSE)
Salomon Smith Barney
2002 warned EPS of $2.25-$2.35 vs. our $2.55 and concensus $2.59. Target dropped from $62 to $50.

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Bristol-Myers Squibb Co. (BMY / NYSE)
Prudential Securities
Upgrading from Hold to Buy with a revised price target of $60.Company taking an expected bath in 2002 like one of its peers did recently, but within the next year or so the company should have three new and interesting products on the market.

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Bristol-Myers Squibb Co. (BMY / NYSE)
SG Cowen
We believe management has capitulated with its EPS guidance, and the company is set to go forward from here. Reiterate Strong Buy rating.

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Bristol-Myers Squibb Co. (BMY / NYSE)
Warburg Dillon Read
Lowering estimates and price target to $51 per share. Maintain Hold rating, although we still like the company's long-term prospects.

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Circuit City Group (CC / NYSE)
Bank of America Montgomery
Upgrading to Buy with a price target of $26, due to positive third quarter trends and likelihood of surpassing our estimates.

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Cinergy Corp. (CIN / NYSE)
Merrill Lynch
Raising intermediate-term opinion from Neutral to Buy. CIN presents an attractive investment opportunity with its lower risk integrated model; attractively located low-cost assests; most earnings locked-in in the near-term; and constructive regulatory environment.

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Comtech Telecomm. Corp. (CMTL / Nasdaq)
ABN Amro
Downgrading from BUY to ADD and lowering our target from$20 to $16 as the company is increasingly dependent on US government spending, and 2H02 upside may require economic improvements to fuel revenue growth

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Celera Genomics (CRA / NYSE)
Robertson Stephens
Upgrade from Neutral to Buy. Target $37. Noticeable progress in forward integrating from a genomics database provider to a fully integrated drug discovery company. 2002 EPS down from -$1.84 to -$1.93.

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Danaher Corporation (DHR / NYSE)
Bear Stearns
Downgrading to Attractive from Buy. EPS declines to $0.53 from $0.57 this quarter, and to $2.42 from $2.60 next year. Business conditions are reported to be getting worse.

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Gannett Co. (GCI / NYSE)
Salomon Smith Barney
Downgrade from Buy to Outperform and target from $76 to $73. Expected to make acquisitions in coming industry consolidation, market not kind to newspaper acquirers.

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Illinois Tool Works (ITW / NYSE)
Bear Stearns
Downgrading to Neutral from Attractive (2). No change to estimates. A valuation call in light of risks to automotive and construction end markets next year that collectively represent 40% of company total.

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KPMG Consulting (KCIN / Nasdaq)
Robertson Stephens
Downgrade from Neutral to Underperform. Target $11. Stock ahead of itself.

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Lubrizol (LZ / NYSE)
ABN Amro
Upgrading from ADD to BUY and raising our target from $40 to$43. We expect two major commercialization announcements on PuriNOx in the next 60 days and anticipate that raw material prices will decline in 4Q01, both of which should validate and/or boost earnings.

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Nucor Corporation (NUE / NYSE)
Goldman Sachs
Upgrading to Recommended List from Trading Buy, target to $70 from $60. Tightening steel market, prices expected to rise.

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Pharmacyclics (PCYC / Nasdaq)
Piper Jaffray
Downgrade from Outperform to Neutral. Xcytrin Phase III brain metastates trial disappoints. Trying to get approval based on positve results with lung cancer patients. Target down to $15 from $38. 2002 EPS lowered 12c to -$2.89, 2003 sunk from $1.10 to -$2.80.

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Pharmacyclics (PCYC / Nasdaq)
JP Morgan Chase & Co.
Downgrading from Buy to market perform after Xcytrin (brain mestastases) P3 failed to meet endpoints. Downside is $9 cash/share

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Sonic Automotive (SAH / NYSE)
Bank of America Montgomery
Initiated coverage with a Buy rating and a $26 price target. Believe that 2002 EPS including the benefit of goodwill to grow 30%. Furthermore, SAH plan to continue its aggressive strategy into 2002 and intends to add $800m of additional revenues. Expect SAH to be trading on par with its peer group at 11x our 2002 EPS estimates or $26 per share.

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E.W. Scripps Company (SSP / NYSE)
Salomon Smith Barney
Upgrading to Buy from Outperform and target to $77 from $69. Solid investment. Most dynamic value creation story in newspaper group.

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Stanley Furniture Co. (STLY / Nasdaq)
Merrill Lynch
Downgrading to short-term Neutral, long-term Neutral. STLY faces a steep uphill challenge going forward. Increasing hurdles from growing presence of imports, with little emphasis placed on developing a well-recognized brand puts STLY in a disadvantage.

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Tularik (TLRK / Nasdaq)
Goldman Sachs
Initiating coverage with Outperform rating. Unique platform for developing novel, small molecule drugs, based on gene regulation. Early stages, long-term investment.

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United Auto Group (UAG / NYSE)
Bank of America Montgomery
Initiated coverage with a Buy rating and a $24 price target; 2001 and 2002 EPS estimates of $1.25 and $1.65. It is the third-largest consolidator, with revenues of more than 6 billion. Believe that UAG is a very attractive GARP investment given its aggresive acquisition posture, imports mix and favorable markets.

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Williams-Sonoma (WSM / NYSE)
Robertson Stephens
Upgrade from Neutral to Buy. Raising EPS 2001 from $1.16 to $1.23, 2002 from $1.40 to $1.52. Target price $45.

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XM Satellite Radio Hold. (XMSR / Nasdaq)
SG Cowen
Initiating coverage with a Buy rating and $20 price target.

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USX-U.S. Steel Group (X / NYSE)
Prudential Securities
Downgrading to Hold from Buy and price target to $17 from $30.

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Applied Biosystems Group (ABI / NYSE)
Lehman Bros
Raising price target to $43. Anticipate earnings will accelerate in fourth quarter 2002 exceeding 20% growth of top and bottom lines in 2003.

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Adobe Systems (ADBE / Nasdaq)
NEWS
Reported earnings of 20c/share for the fourth quarter, a penny below the Street forecast, and well below the 34c/share recorded in the same period last year.

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Adobe Systems (ADBE / Nasdaq)
Piper Jaffray
Reports 4Q in-line EPS of 20c. Good long-term, weak short-term. Lowering 2002 EPS by 5c to 90c and target by $1 to $32.

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Adobe Systems (ADBE / Nasdaq)
Warburg Dillon Read
Cutting 2002 estimate to $1 per share, based on surprisingly weak sales in the latest quarter. Maintain Strong Buy rating.

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Applied Materials (AMAT / Nasdaq)
SG Cowen
Slashing fiscal 2002 EPS estimate to $0.25. Maintain Buy rating.

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Amgen (AMGN / Nasdaq)
JP Morgan Chase & Co.
We are having trouble understanding strategic and financial rationale of speculation on the potential AMGN purchase of IMNX for $18B, 75% cash. Would dilute earnings by 25% in 02 and continue thru 04. Doesn't bring any additional capabilities to AMGN, holders were looking to accelerate earnings growth in 02. Think significant downside to stock if deal announced.

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BEA Systems (BEAS / Nasdaq)
Dain Rauscher
Oracle's move into the application server market will likely impact BEAS to a greater extent than IBM. Minimally, we expect pricing pressure to increase. Maintaining Neutral Rating.

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Ciena Corporation (CIEN / Nasdaq)
Dain Rauscher
Reported fourth-quarter results in line with their preannouncement. Guided next quarter revenue down 30%-40%, with no further visibility. Price target is $16.

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Ciena Corporation (CIEN / Nasdaq)
SG Cowen
Significantly cutting estimates. We now expect a loss of $0.29 per share in 2002 and a profit of $0.12 for next year. Maintain Neutral rating.

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Ciena Corporation (CIEN / Nasdaq)
Goldman Sachs
Significantly lowered 2001 EPS from 40c to -28c based on worse than expected guidance. Buyers at $15, target $20.

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Ciena Corporation (CIEN / Nasdaq)
Warburg Dillon Read
Slashing estimates to a loss of $0.12 per share in fiscal 2002 ad a profit of $0.27 for next year. Maintain Hold rating.

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Celestica (CLS / NYSE)
Dain Rauscher
The tone of the analyst meeting was positive, and guidance wasreaffirmed for Q4. Business has shown stability over the past two to three months. Many new customer wins and significant acquisition pipeline support our 2002 outlook.

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Coach (COH / NYSE)
Goldman Sachs
Raising estimates for by 5c for 2002 (June) and 2003 to $1.65 and $1.95 respectively. Holiday season shaping up nicely. Buyers at $33.30. Target $43.

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Calpine Corporation (CPN / NYSE)
NEWS
Moody's Investors Services warned it may downgrade Calpine Corporation's CPN (ind. Power producer) debt to ``junk'' status, on concern over the company's liquidity and financial flexibility.

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Walt Disney Company (DIS / NYSE)
Merrill Lynch
Lowering first quarter and 2002 EPS estimates to $0.08 and $0.57 reflecting soft trends at Theme Parks and under-performing Broadcasting business. Maintain neutral rating.

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Darden Restaurants (DRI / NYSE)
Lehman Bros
Raising price target to $42 at 20x EPS estimate. Industry is leading Comps and shows 20%+ EPS growth in a recessionary times, reflecting resiliency along with upside leverage in an "uptick".

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Fannie Mae (FNM / NYSE)
Dain Rauscher
Released outstanding November operating results, with thebusiness volume reaching a record $61 billion. These results only give us more confidence in our 4Q01 and FY2001 estimates of $1.40 and $5.20, respectively.

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Gucci Group N.V. (GUC / NYSE)
Bank of America Montgomery
Lowering third quarter estimates to $0.57 in advance of nest Tuesday's earnings release. Believe topline was not quite as robust as originally thought.

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Gillette Company (G / NYSE)
NEWS
Announced it would record a pretax charge of approximately $170 million, which is nearly $130 million or 12 cents per share after taxes, to cover the write-down of goodwill, other intangibles and related long-lived assets of battery brands in international markets.

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Juniper Networks (JNPR / Nasdaq)
Dain Rauscher
Reducing estimates due to softer demand for voice and data services being experienced by carriers like Qwest. New-expectations are revenues of $800 million and EPS of $0.34 compared to $914 million and $0.42 previously.

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Lam Research Corporation (LRCX / Nasdaq)
SG Cowen
Cutting estimates to reflect our expectations of an aggressive pricing landscape. We now see the company earning $0.36 per share in fiscal 2002. Maintain Buy rating.

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Lucent Technologies (LU / NYSE)
Robertson Stephens
Preannounces Dec Qtr. Concerned profitable growth not sustainable. Target $6. 2002 EPS dropped to 35c to -85c.

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Lucent Technologies (LU / NYSE)
Warburg Dillon Read
Reducing our estimates to match the company's new guidance. Maintain Hold rating.

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Metro-Goldwyn-Mayer (MGM / NYSE)
Merrill Lynch
Modestly lowering fourth quarter revenue and EBITDA estimates by $23m and $8m. Estimate 2002 revenue growth of 13% and EBITDA growth of 50%. Maintain intermediate-term Neutral rating.

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Marshall & Ilsley Corp. (MI / NYSE)
Credit Suisse First Boston
Raising price target to $68.50. MI's superior credit metrics, lack of supply/demand imbalance in the bank's commercial real estate markets, benefits from a manufatcuring-led economic rebound gives reason to believe that there is substantial upside to our price target.

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Neurocrine Biosciences (NBIX / Nasdaq)
Deutsche Banc Alex Brown
Raising price target to $70.

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Oracle Corporation (ORCL / Nasdaq)
Bank of America
Lowering 2002 and 2003 EPS estimates to $0.45 and $0.52. ORCL posted the slowest top-line growth in memory. Convinced that PE at 30x seems fully-valued. Reiterate Market Perform as we await better company fundamentals.

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Oracle Corporation (ORCL / Nasdaq)
Prudential Securities
High F4Q guidance will keep the stock in a trading range of $13 to $17 as fear of estimate reductions and a potential 4Q miss will weigh on the stock. Based on our increased estimates, raising our price target to $17 from $13. Maintaining Hold rating.

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Oracle Corporation (ORCL / Nasdaq)
Robertson Stephens
Reports quarter ending November with EPS of 10c, beat our 9c, in-line with street. Reiterate Neutral and $14 target.

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Oracle Corporation (ORCL / Nasdaq)
Goldman Sachs
Guidance too optimistic. Reported in-line. License revs down 27%. lowering numbers in '02

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Oracle Corporation (ORCL / Nasdaq)
SG Cowen
Trimming full-year EPS estimate by a penny, after the company posted weak sales in the November quarter. Maintain Neutral rating, based on valuation.

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Oracle Corporation (ORCL / Nasdaq)
Warburg Dillon Read
Raising EPS estimates up to the consensus. We believe the stock will trade lower to, because of confusing May quarter guidance.

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Pharmaceutical Product (PPDI / Nasdaq)
Weisel Partners
Update from investor meetings: Maintain view that industry-leading fundamentals in Development & opportunities in Discovery will drive near & long-term growth.

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Qwest Communications Int. (Q / NYSE)
Goldman Sachs
Trimming estimates further. Reiterate Neutral. Target $11-$12.

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Qwest Communications Int. (Q / NYSE)
Dain Rauscher
Qwest reduced guidance for 2002 to reflect management's expectations that an economic recovery will not be felt until 2003 and cash IRU sales will go from roughly $1.1 billion in 2001 to zero in 2002. Continue to maintain a cautious stance and reiterate neutral rating

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Sonus Networks (SONS / Nasdaq)
Dain Rauscher
Current customers are slowing deployments due to projectcompletions or financial difficulties. Do not expect significant new customer wins for two quarters. As a result, lowering estimates and price target, but maintain Buy-Aggressive rating

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Tektronix (TEK / NYSE)
Weisel Partners
Solid November quarter earnings; T&M sector bottoming; expect gradual recovery in 2H'02.

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VeriSign (VRSN / Nasdaq)
Dain Rauscher
The acquisition of Illuminet Holdings, Inc. is now complete.With this acquisition, we believe VeriSign is very well positioned to be the dominant provider of voice/data infrastructure services for rapidly converging IP and telephony markets. Reiterate Strong Buy-Aggressive.

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Wells Fargo & Company (WFC / NYSE)
Dain Rauscher
WFC has agreed to acquire Tejas Bancshares, for $82.5 million in stock. Due to the relatively small size of the deal, we are leaving our 2001 and 2002 EPS estimates unchanged at $2.70 and $3.25, and reiterating our Strong-Buy rating.

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Bear Stearns (Sentiment)
Bullish sentiment way down: SPX 17%, NDX 16%, 5 day moving average 38 and 43%. Equity P/C flat at .71, SPX P/C up to 1.64.

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Lehman Bros (Wireless and Internet Infrastructure)
Remain cautious on vendors leveraged to long-haul and core IP netwrk carrier spending. Continue to prefer vendors exposed to enterprise spending such as Cisco as well as wireless vendors Nokia, Qualcomm, and Comverse where some signs are emerging of wireless capex stabilizing at current reduced levels.

Goldman Sachs (steel)
Upgrading NUE to Recommended List from Trading Buy, target to $70 from $60 and AKS to Trading Buy from Outperform, target to $17 from $12. Tightening steel market, prices expected to rise.

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Oscillator: (0.4)

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8:30 a.m. Consumer Price Index -0.1% less food & energy 0.2%

8:30 a.m. Business Inventories Oct, 2001 -0.5%

9:15 a.m. Industrial Production -0.6% and Capacity Utilization 74.1%

10:00 a.m. Consumer Sentiment (Dec, 2001)

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Level 3 Communications Company Tour (BAC MEETING)

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