Friday, Oct. 1, 1999
After-Hours Markets
Remember what this table looked like at 5 p.m. EDT? Well, it's pretty much the same. The leader,
Digital Insight
(DGIN)
, hasn't changed in 90 minutes.
Dell
(DELL) - Get Dell Technologies Inc Class C Report
traded a few more shares and
Amazon
(AMZN) - Get Amazon.com, Inc. Report
moved past
Microsoft
(MSFT) - Get Microsoft Corporation Report
.
Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 8 p.m. EDT. Prior to Sept. 15 Island offered trading from 8 a.m. to 5:15 p.m. EDT
.
--
TheStreet Recommends
Eric Gillin
Day-Session Report
Major proxies finished lower, but were looking much better after a bounce off intraday lows. The
Dow Jones Industrial Average
ended down 63.9 to 10,273, after being down more than 130 points. The
Nasdaq Composite Index
also fought back, closing down 9.3 to 2736. Meanwhile, the
S&P 500
squeaked out a fractional gain to 1282.
The big European indices -- France's
CAC
, Germany's
Xetra Dax
and London's
FTSE
-- all closed in slightly negative territory.
In Asian markets, Tokyo's
Nikkei
rose 107.1, or 0.6%, to 17,712. Hong Kong markets were closed for China's
National Day
holiday.
Mergers, Acquisitions and Joint Ventures
AT&T
said it was considering strategic options relating to its 58% interest in
Excite@Home
(ATHM) - Get Autohome Inc. Report
. In response to rumors that
America Online
(AOL)
had been pinned as a possible buyer, AT&T said it has not forged any definitive deals.
CMS Energy
(CPG) - Get Crescent Point Energy Corp. Report
bought energy services company
Viron
from
York International
(YRK)
in a deal which will result in a $10 million pretax gain for York.
Kellogg
(K) - Get Kellogg Company Report
is acquiring
Worthington Foods
(WFDS)
for $24 a share, based on about 12.8 million shares outstanding, or $307 million, Kellogg said. Kellogg expects to complete the deal by year-end. Worthington manufactures and markets "vegetarian and other healthful foods."
Revlon
(REV) - Get Revlon, Inc. Class A Report
has decided to pursue the sale of its worldwide Professional Products business and its noncore Latin American brands. Revlon said it is negotiating or in active talks with potential purchasers and anticipates concluding the sales by the end of the first quarter of next year for gross proceeds of more than $500 million. Revlon also said it has decided not to sell its remaining cosmetics, personal care, fragrances and skin-treatment businesses.
Earnings/Revenue Reports and Previews
Datascope
(DSCP)
said it expects first-quarter earnings per share to be between 29 and 31 cents, above the current three-analyst estimate of 24 cents a share.
Midland
(MLAN)
said it sees third-quarter earnings in line with the year-ago 66 cents, beating the current analyst estimate of 52 cents a share.
Service Corp. International
(SRV) - Get The Cushing MLP & Infrastructure Total Return Fund Report
lowered its third-quarter earnings estimate to 10 cents to 13 cents a diluted share. The current eight-analyst estimate is for earnings of 22 cents a share.
Systems and Computer Technology
(SCTC)
said it expects fourth-quarter earnings per share of 11 to 15 cents, lower than the analyst consensus estimate of 24 cents a share.
USG
(USG)
said it expects to report record earnings and sales for 1999 as home building and remodeling markets continue to boom.
Offerings and Stock Actions
Covad Communications
(COVD)
said it planned to register to sell 13 million common shares.
Dexter
(DEX) - Get Delaware Enhanced Global Dividend & Income Fund Report
said
International Specialty Products
(ISP)
filed to notify U.S. regulators that it will buy a more than 15% stake in Dexter's voting stock.
Shares of
Digital Insight
(DGIN)
, an Internet banking firm, jumped 17 3/16, or 114.5%, to 32 1/8 in its first day of trading.
OshKosh B'Gosh
(GOSHA)
said it will buy back 4.5 million class A shares in a Dutch auction. The company said it would also buy back 100,000 shares in a self-tender.
Salton
(SFP)
said it withdrew its 4.6 million share proposed stock offering because it doesn't think the company's future growth and current profitability are currently reflected in its stock price.
Analyst actions
SG Cowen
and
Salomon Smith Barney
broke out the scalpel for a number of HMO's in the wake of news that they may soon face new litigation as some plaintiffs' attorneys prepare class-action lawsuits in an effort to increase patients' benefits. Cowen cut ratings and or price targets on the following stocks:
Aetna
(AET)
,
Foundation Health
(FHS)
,
Humana
(HUM) - Get Humana Inc. Report
,
PacifiCare Health
(PHSY)
,
United HealthCare
(UNH) - Get UnitedHealth Group Incorporated Report
and
WellPoint
(WLP)
.
Salomon cut WellPoint's price target to 74, United Health's to 54, and
Oxford's
(OXHP)
to 21.
SG Cowen cut its rating on
Apex
(APEX) - Get APEX Global Brands Inc. Report
to buy from strong buy.
PaineWebber
started coverage of
Esterline Technologies
(ESL)
with an attractive rating.
Brown Brothers Harriman
raised
R.J. Reynolds Tobacco
(RJR)
to a long-term buy from a neutral rating.
Warburg Dillon Read
cut its 1999 earnings estimates on
Sipex
(SIPX)
to 46 cents from 65 cents a share and cut its price target to 15 from 21. Analyst Gregory Mischou said that Sipex management indicated that a wafer availability problem that caused a shortfall would impact the fourth quarter as well.
PaineWebber initiated coverage of
Tiffany
(TIF) - Get Tiffany & Co. Report
with a neutral rating.
SG Cowen cut its price target on
United Health
(UNH) - Get UnitedHealth Group Incorporated Report
to 63 from 90 but kept its strong buy rating.
Morgan Stanley Dean Witter
upgraded
UNUMProvident
to strong buy from outperform.
Miscellany
American Home Products
(AHP)
reached out-of-court settlements with four plaintiffs in California whose fen-phen diet-drug lawsuits were scheduled to begin separate trials on Monday. Terms were not disclosed.
Ford
(F) - Get Ford Motor Company Report
plans to spin off its auto-parts unit --
Visteon Automotive Systems
-- to shareholders and give wage and job guarantees to the division's factory workers,
The New York Times
reported, citing people close to the matter. The
Times
reported that Ford pondered selling the unit to either
Lear
(LEA) - Get Lear Corporation Report
or
Delphi Automotive Systems
(DPH)
, but labor issues along with tax considerations persuaded Ford to spin off the unit. Delphi was spun off in May from
General Motors
(GM) - Get General Motors Company Report
.
Oddenda
Police bagged a not-so-savvy St. Petersburg, Fla., thief after he was caught on tape holding up a local
Circle K
unarmed, and with only a transparent plastic trash bag over his head for a disguise. Further evidence of Herbert L. Hill's criminal mastermind was revealed when police learned that the suspect, an admitted crack addict, was publicly bragging about his deed.
