Updated from 8:25 a.m. EST

Second Edition

Image placeholder title

NOTE: TheStreet Notes currently is being offered for FREE to all users of TheStreet.com on a trial basis and for a limited period of time only. We expect to make this a premium service in the future. In the meantime, we welcome your comments at feedback@thestreet.com

.

Image placeholder title

Click Here

for the legal disclaimer.


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

Image placeholder title


Advance Auto(AAP / NYSE)
Lehman Bros
Initiating coverage with Strong Buy rating and a $60 price target. Based on Advance's successful integration of Western Auto and Carport, we believe the Discount integration will drive operating margins to approx 11%. Experienced Management Team Leads Growth. We believe Advance is well-positioned in this fragmented industry.

Image placeholder title
Image placeholder title

Retek (RETK / Nasdaq)
Dain Rauscher
Assuming coverage with Buy-Speculative rating. Conversations with management and due diligence checks with SIs and retailers suggest positive trends, despite a difficult an operating environment. Increasing our 2002 revenue and EPS estimates to $240 million and $0.42, respectively.

Image placeholder title

U.S. Xpress Enterprises (XPRSA / Nasdaq)
Bear Stearns
Upgrading to a Buy from an Attractive rating. We have raised our $9 twelve month target price to $12 or 16x our upwardly revised C03 EPS estimate of $0.75, which represents 45% upside from yesterday's closing price.

Image placeholder title

back to top

Image placeholder title


Adolph Coors Company (RKY / NYSE)
JP Morgan Chase & Co.
holding a conference call today at 2:00pm EST: 952.556.2801, to discuss acquisition of Carling Brewers in the UK for $1.75B. The merger itself is a slight positive, as it solves Coors' problem of geographic and product concentration. However, it does not improve Coors' scale in the US, which is its single biggest issue. We maintain our MP

Image placeholder title
Image placeholder title

Advanced Micro Devices (AMD / NYSE)
Merrill Lynch
raising Q4 estimates and are now looking for a loss per share of $0.15 as compared to our previous $0.23 loss estimate. We expect revenue to grow 17% sequentially, entirely on the back of stronger microprocessor revenues. Reit Neutral for the intermediate term. We believe that the Q1 launch of Intel's Northwood poses a substantial challenge to AMD.

Image placeholder title

Boca Resorts (RST / NYSE)
Bear Stearns
raising estimates to reflect stronger-than-anticipated operating trends at the company's south Florida resort properties. These properties continue to show improving trends in the face of what has been a very challenging environment for hotel operators

Image placeholder title

Caterpillar (CAT / NYSE)
Lehman Bros
announced plan to reduce workforce by over 900 employees, through the recently announced closure of UK Perkins' plant, about 520 employees, and another 420 in select business units within the U.S. through early retirement. Will cause Cat to take about a $55 mil pre-tax charge in 4Q01, on top of $80 million charge for sale of MT tractor line to Agco. Reaffirmed expectation to meet 4Q01 and FY01 estimates of $2.50-$2.70, down 10-15%. Sticking w/ our $0.77 and $2.61 estimates.

Image placeholder title

CSG Systems International(CSGS / Nasdaq)
Morgan Stanley Co.
Kenan acquisition expands geographic footprint and addressable market, and provides cross-sell opportunities. Trimming 2002 EPS from $2.05 to $1.95 to reflect impact of intangibles amortization. 2003 may benefits from cross-sells.

Image placeholder title

International Game Tech. (IGT / NYSE)
Goldman Sachs
Raising price target to $85 from $70 and 2002 EPS from $3.10 to $3.30. SLOT acquisition closing 3 days away. 15-20% grwoth expected per year.

Image placeholder title

Kmart Corp. (KM / NYSE)
Bear Stearns
Reit Attractive, inventory writedown risk minimal.

Image placeholder title

Lucent Technologies (LU / NYSE)
Morgan Stanley Co.
Announced on 12/22 sale of Kenan Systems unit and BILLDATS product to CSGS for $300 million cash. Sale makes sense. Sharpening focus on main business. Raises cash, cuts costs. Reiterate Neutral.

Image placeholder title

Parker-Hannifin Corp. (PH / NYSE)
Prudential Securities
Reit BUY and $55 price target. Recently completed a 30-distributor survey of Parker's North American Industrial business. The results are essentially in line with our BUY thesis.

Image placeholder title

Pier 1 Imports (PIR / NYSE)
ROBERTSON STEPHENS
Upwardly revised 2002 EPS estimates to $1.10. Sales and margin trends remained solid through the important Christmas holiday, suggesting continued positive response to the company's value-focused offering. Continue to anticipate opportunities for positive earnings surprise. Reiterate Buy rating, $22 price target.

Image placeholder title

SBS Technologies (SBSE / Nasdaq)
NEWS
cautioned that it sees a second quarter loss of approximately $8.5 million to $10.0 million. Sales for the quarter are expected to come in at the low end of previous projections.

Image placeholder title

Scholastic Corporation (SCHL / Nasdaq)
Prudential Securities
acquired Tom Snyder Productions for $9 million from a subsidiary of Torstar Corporation. We expect TSP to generate about $10 million in annual revenue, and to be EPS neutral in fiscal 2002 and $0.02 accretive in fiscal 2003. The transaction, though small, makes strategic sense.

Image placeholder title

Sherwin-Williams Co. (SHW / NYSE)
Credit Suisse First Boston
Raising estimates based on better than expected weather during 4Q. Stronger than expected results likely. 4Q to 31c from 26c and 2001 from $1.70 from $1.65. Cautious long-term due to: litigation; struggling consumer business; Home depots push for the pro customer.

Image placeholder title

Target Corporation (TGT / NYSE)
JP Morgan Chase & Co.
Reit long term buy; strong holiday sales. In our view, safe place to hide as value positioning should continue to help them put up sales in weak economic environment.

Image placeholder title

Tribune Company (TRB / NYSE)
Prudential Securities
Agreed to sell its three Denver radio stations, KOSI-FM, KKHK-FM, and KEZW-AM, to ETM for $180 million. TRB had announced itsintention to sell its Denver radio stations in November. ETM will manage the stations for up to three years, after which it have an option to buy them.

Image placeholder title

United Auto Group (UAG / NYSE)
NEWS
anounced it expects to exceed current street earnings estimates for the fourth quarter. The company sees earnings exceeding the 27c forecast by a margin of 4c/share.

Image placeholder title

Wal-Mart Stores (WMT / NYSE)
JP Morgan Chase & Co.
WMT reported holiday sales yesterday at the high end of the expected range of 4-6% range. Prior to last 3 shopping days, holiday had been at low end of range, saw surge in last minute holiday shopping. Stock should continue to be strong in the near term.

Image placeholder title

Zale Corporation (ZLC / NYSE)
ROBERTSON STEPHENS
Anticipate that lower levels of consumer spending this Holiday season vs. last year would result in downward earnings revisions across the jewelry retail sector in the fourth quarter and lead to further reductions to 2002 revenue. Maintain Market Perform with a $43 price target.

Image placeholder title

back to top

Image placeholder title


Deutsche Banc Alex Brown (Oil Services)
Despite widespread nervousness about oil and gas prices, both seem to have survived a weak economy and one of the warmest early winters without serious meltdown. Believe that many stocks have run up so much that they look rather expensive on valuations based on near-term earnings. Our favorites include ESV, RIG, WFT, NBR and SII.

Image placeholder title

Bear Stearns (Sentiment)
Sentiment flat, index P/C high on a low volume day. SPX 67%, NDX 60%, 5 day moving average 63 and 59%. Equity P/C .57, INDEX P/C 2.3.

back to top

Image placeholder title


Oscillator: 2.3

Image placeholder title

back to top

Image placeholder title


Nothing For Today
back to top

Image placeholder title
Image placeholder title

LEGAL DISCLAIMER:

THE INFORMATION IN THESTREET NOTES HAS BEEN COMPILED FROM A VARIETY OF SOURCES. NEITHER THESTREET.COM, REALMONEY.COM NOR ANY OF THE PROVIDERS OF THE INFORMATION MAKE ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED FROM USE OF THESTREET NOTES, WHICH IS PROVIDED "AS IS" AND WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. TO THE FULLEST EXTENT PERMISSIBLE PURSUANT TO APPLICABLE LAW, THESTREET.COM, ITS OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES, SUPPLIERS, ADVERTISERS, AND AGENTS DISCLAIM ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE, AND ALL WARRANTIES RELATING TO THE ADEQUACY, THESTREET.COM DOES NOT WARRANT THE ACCURACY, OR COMPLETENESS OF ANY INFORMATION IN THESTREET NOTES.

IN NO EVENT SHALL THESTREET.COM BE LIABLE TO YOU OR ANYONE ELSE FOR ANY DECISION MADE OR ACTION TAKEN BY YOU IN RELIANCE ON SUCH INFORMATION OR FOR ANY CONSEQUENTIAL, SPECIAL OR SIMILAR DAMAGES. YOU AGREE THAT THE LIABILITY OF ACCURACY OR COMPLETENESS OF ANY INFORMATION ON THE SITES ARISING OUT OF ANY KIND OF LEGAL CLAIM (WHETHER IN CONTRACT, TORT OR OTHERWISE) IN ANY WAY CONNECTED WITH THESTREET NOTES OR INFORMATION THEREIN SHALL NOT EXCEED THE AMOUNT YOU PAID TO THESTREET.COM FOR USE OF THE SERVICE, IF ANY.