Mercury and Precise join the Nasdaq on its southbound slide

Check Point losing 8.5% after downgrade by Robinson Humphrey
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Several Israeli stocks are rising strong against the negative trend on Wall Street, fueled by the incessant stream of earnings warnings. BackWeb (Nasdaq:BWEB) is soaring by 11.9% to $2.9 after dropping like a stone for days, as the Nasdaq Composite index loses 2.3% and blue chips edge down by 0.3%.

BackWeb also published an earnings warning for the fourth quarter, revealing that it expects to report revenue of only $7.1 million to $7.4 million for the quarter, compared with analyst forecasts of $13 million. The company said it will be losing 11 cents to 14 cents per share compared with nil loss expected by the Street.

BackWeb's warning led Robertson Stephens to downgrade the maker of organizational push technology from Buy to Long-Term Attractive. The investment bank says it expects BackWeb to lose 23 cents per share for 2000, compared with previous estimates of 9 cents. The bank refrained from committing to a forecast for 2001, given the murky conditions in BackWeb's market. Over the last four trading days BackWeb stock has lost 58%.

Dual-listed Nice Systems (Nasdaq:NICE) has lost 68% since issuing its earnings warning last week. Today it's correcting 5.9% upwards to $15.6, after a buoyant day in Tel Aviv on enormous turnover ten times its average.

RADWare (Nasdaq:RDWR) is rising 9.9% to $16, after announcing a deal with Continental Airlines. The carrier will be using RADWare's WSD-Pro solutions to run its 15 websites. To recap recent history, after RADWare competitor F5 announced that it will disappoint investors in the fourth quarter, the Israeli company hastened to announced that it, for one, would not. Nonetheless, its stock is 26% below its level on the day of F5's warning.

Prominent among the losers is none other than Check Point Software Technologies (Nasdaq:CHKP), losing 8.5% to $106.8. Although the share gained 30% on the heels of interest cuts in the U.S., the share has ended the last week of trade down by 13%.

Mercury Interactive (Nasdaq:MERQ) is losing an additional 5.7% to $63.3 on top of its 25% drop last week. Its new price reflects a $5.3 billion value for the company. Investors are apparently unmoved by the company's alliance agreement with CacheFlow, and in spite of Prudential's upgrade of the share from Hold to Strong Buy.

Precise Software Solutions (Nasdaq:PRSE) is also shedding a hefty 16.6% to $18.5. The drop remains unexplained.