Skip to main content

Friday, Sept. 10, 1999

<B>After-Hours Trading:</B> Cardima, AppNet and Amplidyne led the most-actives on Island ECN.
  • Author:
  • Publish date:


Island ECN offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 5:15 p.m. EDT



Eric Gillin

Day Session Report

The major U.S. stock indices closed today's trading session with dissimilar outcomes. The

Dow Jones Industrial Average

surrendered its early afternoon gains and declined 19 to 11,061, while the

Nasdaq Composite Index

continued to advance, ending the day up 39 at 2891.

In Europe, market indicators ended the session mixed. France's


was up 28 at 4745, Germany's


climbed 47 to 5483 and London's


was down 69 at 6191.

Scroll to Continue

TheStreet Recommends

In Asia, Japan's


managed to hold onto some of yesterday's gains, closing the trading session up 33 to 17,711, while Hong Kong's

Hang Seng

climbed 1 to 13,855.

Mergers, Acquisitions and Joint Ventures

An investment group led by



President and CEO Henry T. Nicholas III is reportedly close to inking a letter of intent to acquire

Major League Baseball's

Anaheim Angels

and the

National Hockey League's

Mighty Ducks




for $400 million to $500 million,

The New York Times


Illinois Tool Works


hammered out an agreement to acquire

Premark International


in a $3.4 billion deal. Under the agreement, shareholders of Premark, a commercial food-equipment maker, will receive ITW stock with a market value of $55 for each Premark share. But the amount may vary, based on ITW's average share price in the 20 trading days before closing. Deerfield, Ill.-based Premark will become a wholly owned subsidiary of ITW.

ABN Amro

raised its price target on Illinois Tool to $100 from $93 and maintained its buy rating on the stock.

Old Kent Financial


announced its plans to buy

Grand Premier Financial


in a deal valued at $394 million. Old Kent said it would assume a one-time charge of $30 million.

Merrill Lynch


unveiled plans to take a 14.3% interest in the electronic-trading system,

Archipelago Holdings

, which will start transacting orders in Big Board-listed stocks,

The Wall Street Journal


Earnings/Revenue Reports and Previews



posted fourth-quarter earnings of 25 cents a share, in line with the five-analyst estimate of 25 cents but below the year-ago 28 cents.

Dow Chemical's


CEO said he was comfortable with third-quarter earnings estimates. The 14-anlayst estimate calls for earnings of $1.32 a share.



posted third-quarter earnings of 53 cents a share, beating both the five-analyst estimate of 52 cents and the year-ago 42 cents.



said it expects to post third-quarter earnings close to the year-ago 84 cents a share, missing analysts' estimate of 99 cents. The company blames the disappointing earnings on slow sales in low-priced to moderately expensive home appliances.

National Semiconductor


reported a first-quarter profit of $57 million, or 25 cents a share, including a gain, reversing the year-ago loss of 63 cents a share. The 19-analyst estimate called for a loss of 14 cents a share. National Semiconductor didn't release per-share figures excluding the gain, but said pretax profit excluding the gain was $1.2 million.

Warburg Dillon Read

upped its year 2000 estimates on the stock to $1.18 from 59 cents, while

Salomon Smith Barney

took its fiscal 2000 estimates up to $1.25 from 75 cents and set a price target of 55.



said it would shut down two U.S. nitrogen-fertilizer facilities and slice third-quarter earnings estimates in half. The plant closings in Clinton, Iowa, and LaPlatte, Neb., along with three others announced on Aug. 12, will mean an estimated $37 million third-quarter writeoff for the company. Potash said harsh market conditions in nitrogen and slowing trends in potash and phosphate would drive third-quarter earnings down to about a quarter of its $1.01 per share earnings for the same period last year.

J.P. Morgan

reduced the stock's rating to market performer from long-term buy.



said it was comfortable with analysts' third-quarter and fiscal year estimates of $1.33 and $5.15 respectively.

Offerings and Stock Actions

Children's Place


said it iced plans for a secondary offering of 3 million shares, citing a drop in its share price.



announced its plans to spin off its


division in an initial public offering of its common stock. HNC said it expects the offering to debut in the fourth quarter.

Primus Telecommunications


has set plans for a stock offering to raise $141.25 million.

Lehman Brothers


Morgan Stanley Dean Witter

will serve as the deal's lead underwriters.

Analyst Actions

Dain Rauscher

sliced its rating on



to buy from strong buy.

Merrill Lynch raised its rating on

Atlantic Coast Air


to near-term accumulate from a neutral.

Credit Suisse First Boston

analyst Mark Wolfenberger boosted






with positive comments.

Banc of America Securities


Capital One


with a buy rating.

Warburg Dillon Read sliced its third-quarter and 1999 earnings estimates on

Chase Manhattan Bank


to $1.28 from $1.33 and to $5.40 from $5.55 respectively, maintaining its strong buy rating. Yesterday, Merrill Lynch analyst Judah Kraushaar reiterated his near-term accumulate long-term buy on its shares and left the stock's estimates unchanged.

Wachovia Securities

rolled out coverage of



with a long-term buy rating and a price target of $208.

ING Barings

cut its rating on



to a hold from a buy. Yesterday, the company said it decided not to spin off its inpatient operations to shareholders and would instead keep its divisions under one business. HealthSouth also announced plans to restructure management at its outpatient services, a move that will result in charges of $250 million to $300 million by the end of the year. J.P. Morgan sliced its rating on the shares to a long-term buy from a buy, while

Credit Suisse First Boston


Donaldson Lufkin & Jenrette

also dropped their ratings on the stock.

Lehman Brothers downgraded shares of

Idec Pharmaceuticals


to outperform from buy.

Goldman Sachs

trimmed its 1999 earnings estimate on

J.P. Morgan


down 50 cents to $10 and shaved 80 cents off of its year 2000 estimate to $11.50. Goldman also sliced its third-quarter estimates on the shares to $2.10 from $2.46.

Morgan Stanley raised its rating on

MidAmerican Energy


to outperform from neutral.

Banc of America rolled out coverage on



with a market perform rating.

Goldman Sachs initiated coverage of

MKS Instruments


with a market outperform rating.

Banc of America began coverage of



with a buy rating.

Banc of America lowered its rating on

St. Jude Medical


to a buy from a strong buy.

Salomon Smith Barney analyst Geoff Kieburtz cut his 1999 earnings estimates on



to $1.05 from $1.10 and sliced numbers on

Petroleum GeoServices


to 65 cents from 75 cents.

Warburg Dillon Read reduced its year 2000 estimates on



to $1.90 from $2.05, maintaining its buy rating.


cut its rating on



to attractive from buy.

PaineWebber upped its rating on

TC Pipeline


to a buy from an attractive.

PaineWebber cut its rating on



at attractive from a buy.

PaineWebber lowered its rating on

Ultramar Diamond


to a neutral from an attractive.

Donaldson Lufkin & Jenrette upped its rating on

Union Pacific


to a buy from an accumulate.

Goldman Sachs rolled out coverage of

Varian Semiconductor


with a market outperform rating.

Warburg Dillon Read upped its rating on



to buy from hold and set a price target of $28. The stock closed Thursday at 21.

Credit Suisse First Boston raised its rating on



to a strong buy from a buy and set a new price target of 55.


American Online


said former



strategist William Raduchel would replace Mark Andreessen as chief tech officer. Andreessen resigned his role but will continue to serve as a part-time strategist for the company.

Leasing Solutions


said it would be delisted from the

New York Stock Exchange

if it fails to meet the NYSE listing requirements.

Law enforcement officials said wire transfer company


, which is connected to the

Bank of New York


money-laundering investigation, seems to have operated illegally in the U.S., channeling millions of dollars out of Russia,

The Wall Street Journal



, a home-improvement retailer, said it plans to liquidate its business rather than reorganize, the





said its


oxygen monitor received the


stamp of approval. The device tracks a patient's pulse rate and oxygen saturation while they're in motion.

Sound Source Interactive


said that Nasdaq had delisted its stock from the Nasdaq Stock Market as of yesterday's close.